For most Indian residents, VWRA (Vanguard FTSE All-World UCITS ETF, Ireland) is one of the best all-world ETFs. VWRA is one fund, has no US estate tax exposure and charges 0.14% a year.
VT charges 0.06%, but the US treats VT as a US asset. Once a nonresident's total US assets pass USD 60,000, their estate can owe US estate tax of up to 40%.
IWDA + EIMI costs about 0.20%, more than VWRA, and suits investors who want to set their own emerging-markets weight.
Table of contents
- What are VWRA, VT, IWDA and EIMI?
- Can Indian residents legally buy VWRA?
- VWRA vs VT: which is better for an Indian investor?
- Why is VWRA cheaper in 2026?
- VWRA vs IWDA + EIMI: is the two-fund setup still worth it?
- Which should you pick: VWRA, VT or IWDA + EIMI?
- How is VWRA taxed in India?
- How do you buy VWRA from India?
- Already holding VT, US ETFs or IWDA + EIMI: should you switch to VWRA?
What are VWRA, VT, IWDA and EIMI?
VWRA, VT, IWDA and EIMI are four ETFs that Indian investors use to own global stocks.
- VWRA is the Vanguard FTSE All-World UCITS ETF (USD Accumulating). VWRA tracks the FTSE All-World Index of large and mid-sized companies, is domiciled in Ireland and trades on the London Stock Exchange.
- VT is the Vanguard Total World Stock ETF. VT tracks the FTSE Global All Cap Index, is a US fund and trades on NYSE Arca.
- IWDA is the iShares Core MSCI World UCITS ETF (USD Accumulating). IWDA tracks the MSCI World Index of developed markets, is domiciled in Ireland and trades on the London Stock Exchange.
- EIMI is the iShares Core MSCI EM IMI UCITS ETF (USD Accumulating). EIMI tracks the MSCI Emerging Markets IMI index of large, mid and small companies, is domiciled in Ireland and trades on the London Stock Exchange.
IWDA covers developed markets and EIMI covers emerging markets. Bought together as a pair, IWDA + EIMI approximates the all-world exposure of VWRA.
| As of October 2026 | VWRA | VT | IWDA | EIMI |
|---|---|---|---|---|
| Issuer | Vanguard | Vanguard | iShares (BlackRock) | iShares (BlackRock) |
| Index | FTSE All-World | FTSE Global All Cap | MSCI World | MSCI Emerging Markets IMI |
| ISIN | IE00BK5BQT80 | US9220427424 | IE00B4L5Y983 | IE00BKM4GZ66 |
| Domicile | Ireland | United States | Ireland | Ireland |
| Exchange and currency | London Stock Exchange, USD | NYSE Arca, USD | London Stock Exchange, USD | London Stock Exchange, USD |
| TER (% a year) | 0.14% | 0.06% | 0.20% | 0.18% |
| Number of holdings | 3,821 | 10,048 | 1,282 | 3,129 |
| Dividends | Accumulating | Distributing, quarterly | Accumulating | Accumulating |
| US estate tax exposure | No, Irish fund | Yes, once total US assets exceed USD 60,000 | No, Irish fund | No, Irish fund |
| Withholding on US dividends | 15%, paid inside the fund | 25%, paid by the Indian investor | 15%, paid inside the fund | Not applicable (no US stocks) |
Can Indian residents legally buy VWRA?
Yes, Indian residents can buy VWRA on the London Stock Exchange under the RBI's Liberalised Remittance Scheme (LRS).
LRS lets resident individuals remit up to USD 250,000 per financial year (April to March). The RBI says LRS investments must follow the Overseas Investment Rules and Regulations, 2022. The same RBI FAQ makes PAN mandatory for every LRS transaction.
VWRA units are bought from other investors on the London Stock Exchange, like any listed share. Paasa gives Indian residents direct access to VWRA, held in an account in the investor's own name with Interactive Brokers as custodian.
Read more on investing in VWRA from India and using LRS for investments.
VWRA vs VT: which is better for an Indian investor?
VWRA is better for most Indian residents, because VWRA carries no US estate tax.
VT is cheaper on fees. VT charges 0.06% a year and VWRA charges 0.14%. Tax decides the comparison, not the fee.
The US estate tax view
For nonresidents, the IRS counts stock of US companies as a US asset for estate tax. VT is a US fund, so VT units count. A nonresident's estate must file a US estate tax return when total US assets exceed USD 60,000. The top rate is 40%.
VWRA units are shares of an Irish company, not a US one, so this IRS rule does not reach them.
The USD 60,000 line counts all US assets together. An investor holding USD 80,000 of US employer RSUs is already over it before buying any VT. On USD 500,000 of US assets, the IRS rate schedule gives a tax of about USD 142,800, after the USD 13,000 credit for nonresidents. See how US estate tax works for Indians and NRIs and protecting RSUs from estate tax.
The dividend tax view
VT pays dividends every quarter. The US withholds 25% on VT dividends paid to Indian residents, under Article 10 of the India-US tax treaty. India then taxes VT dividends at the investor's slab rate every year. The investor can claim credit for the US tax by filing Form 67.
VWRA reinvests dividends inside the fund. US companies pay those dividends to VWRA with up to 15% withheld, under Article 10 of the Ireland-US tax treaty. The investor cannot claim this 15% back. Since VWRA pays nothing out, there is no yearly dividend income to tax in India. Tax comes only on sale, at 12.5% on gains for units held more than 24 months. See dividend withholding tax on Irish UCITS.
Example. Suppose you are an Indian resident in the 30% slab, holding USD 100,000 in VT or VWRA. Assume a 1.5% dividend yield, in line with VT's equity yield as at 30 September 2026, all from US companies.
| Yearly cost on USD 100,000 | VT | VWRA |
|---|---|---|
| Dividends earned | USD 1,500 | USD 1,500 |
| US tax withheld | USD 375 (25%) | USD 225 (15%, inside the fund) |
| Extra Indian tax after Form 67 credit | USD 75 (30% minus 25%) | USD 0 (no dividend paid out) |
| Fund fee (TER) | USD 60 (0.06%) | USD 140 (0.14%) |
| Total yearly cost | USD 510 | USD 365 |
The result: VWRA costs about USD 145 a year less than VT for this investor, before counting estate tax.
Note: The example ignores dividends from non-US companies. VWRA gains are still taxed in India on sale.
Why is VWRA cheaper in 2026?
VWRA is cheaper because Vanguard cut its fee from 0.19% to 0.14% on 28 July 2026. The Vanguard VWRA page now shows the 0.14% fee, which Vanguard calls the ongoing charge.
Vanguard says the cut will save investors more than USD 37 million a year, on a fund with about USD 77 billion in assets.
The cut widened VWRA's cost lead over IWDA + EIMI. IWDA still charges 0.20% and EIMI still charges 0.18%.
| TER (% a year) | Before 28 July 2026 | From 28 July 2026 |
|---|---|---|
| VWRA | 0.19% | 0.14% |
| IWDA | 0.20% | 0.20% |
| EIMI | 0.18% | 0.18% |
| IWDA + EIMI (88% IWDA, 12% EIMI) | 0.198% | 0.198% |
IWDA and EIMI each cost more than 0.14%. So no mix of IWDA and EIMI can cost less than VWRA.
The fee is taken inside the fund, so every VWRA holder gets the lower rate automatically, with no need to sell or switch. On ₹10 lakh, VWRA now costs about ₹1,400 a year, against about ₹1,980 for IWDA + EIMI.
Note: Fund fees can change again. Check the Vanguard VWRA page before investing.
VWRA vs IWDA + EIMI: is the two-fund setup still worth it?
No, for most Indian investors IWDA + EIMI is not worth it in 2026. VWRA costs less and needs one trade instead of two.
VWRA charges 0.14% a year, against about 0.198% for a typical 88/12 IWDA + EIMI split. Two funds also mean two orders and regular rebalancing, each with brokerage and trading costs.
IWDA + EIMI still suits three kinds of investor.
- You want to set your own emerging-markets weight. VWRA holds emerging markets at the index weight. With IWDA + EIMI, the investor picks the split.
- You want emerging-market small caps. EIMI's index includes small companies. VWRA holds large and mid-sized companies only.
- You already hold a lot of Indian stocks. VWRA holds India at a 1.50% weight, as at 30 September 2026. IWDA covers developed markets only, so it holds no Indian stocks. An investor with a large Indian portfolio can pair IWDA with a smaller EIMI share to avoid holding more India than intended.
For fund-level detail, see VWCE vs IWDA and EIMI vs VFEM.
Which should you pick: VWRA, VT or IWDA + EIMI?
Pick VWRA, unless one of the specific cases in this table applies to you.
| If you… | Pick | Why |
|---|---|---|
| Want one low-cost fund and no US estate tax | VWRA | VWRA is the cheapest of the Irish options at 0.14% |
| Want to set your own emerging-markets or India weight | IWDA + EIMI | Two funds let you choose the split |
| Are, or will remain, a US taxpayer | VT | The US treats Irish funds such as VWRA as passive foreign investment companies (PFICs), which need extra reporting on Form 8621 |
| Already hold IWDA + EIMI | Keep them, send new money to VWRA | Selling triggers Indian capital gains tax for a 0.06% fee saving |
| Already hold VT | Stop adding to VT, send new money to VWRA | VT adds to US estate tax risk once total US assets pass USD 60,000 |
VWRA, VT and IWDA + EIMI are all diversified, low-cost choices. The difference between them is tax and convenience.
How is VWRA taxed in India?
VWRA gains are taxed at 12.5% in India when the units are held for more than 24 months.
| VWRA tax rule in India | Detail |
|---|---|
| Long-term holding period | More than 24 months |
| Long-term gains tax rate | 12.5% |
| Short-term holding period | 24 months or less |
| Short-term gains tax rate | The investor's slab rate |
| Dividend income | None, because VWRA is accumulating |
| Foreign asset reporting | Schedule FA in the income tax return |
The shorter 12-month rule covers only securities listed on a recognised stock exchange in India. VWRA is listed in London, so the 24-month rule applies.
For more detail, see UCITS accumulating vs distributing and capital gains tax on foreign stocks and ETFs.
How do you buy VWRA from India?
Indian residents buy VWRA in five steps, through an LRS remittance and an order on the London Stock Exchange.
- Open an account. Paasa opens an account in the investor's own name, with Interactive Brokers as custodian.
- Send money under LRS. The RBI allows up to USD 250,000 per financial year under LRS, with PAN mandatory.
- Plan for TCS. Banks collect 20% TCS on LRS remittances above ₹10 lakh in a financial year, for purposes other than education or medical treatment. TCS is tax collected in advance, not a fee. See the LRS guide.
- Buy VWRA on the London Stock Exchange. Search for VWRA, pick the USD line and place a limit order. Paasa also supports the GBP and EUR lines of the same fund.
- No UK stamp duty applies. UK law exempts transfers of ETF interests from stamp duty and stamp duty reserve tax.
For fund data and live prices, see VWRA on Paasa.
Already holding VT, US ETFs or IWDA + EIMI: should you switch to VWRA?
No, most existing holders should keep their units and send new money to VWRA.
Selling VT, a US ETF, IWDA or EIMI is a taxable transfer in India. Gains on units held for more than 24 months are taxed at 12.5%. Gains on units held for 24 months or less are taxed at the investor's slab rate. The sale also has brokerage and trading costs.
- IWDA + EIMI holders. VWRA saves about 0.06% a year over IWDA + EIMI. That saving rarely covers the tax on a sale. Keep IWDA and EIMI, and buy VWRA with new money.
- VT and US ETF holders. VT adds to US estate tax risk once total US assets pass USD 60,000. A VT holder can stop adding to VT and send new money to VWRA. A VT holder near or above that line should weigh the estate tax risk against the tax on selling.
Returning NRIs should check their RNOR status before selling. See how US gains are taxed for RNORs and should you switch from US ETFs to UCITS.
