NASDAQ · ETF
Invest in AFEM ETF from India
Indian and foreign residents can buy First Trust Active Factor Emerging Markets ETF (AFEM) units directly through Paasa.
By Paasa · Updated
AFEM at a glance
- Price
- $98.64+$0.06 (0.06%)
- Expense ratio
- 0.85%
- Day range
- $98.15 – $98.71
- Assets
- $84.1M
- Domicile
- the US
- Holdings
- 136
- Launched
- 2016
- Dividends
- Distributing
- 1 month
- +0.19%
- 6 months
- +23.29%
- YTD
- +24.64%
- 1 year
- +30.53%
- 5 years
- +46.72%
Price change, excluding dividends.
Top 10 holdings
- 1Taiwan Semiconductor Manufacturing Company Ltd.13.8%
- 2Samsung Electronics Co., Ltd.7.8%
- 3SK Hynix Inc.3.7%
- 4Unimicron Technology Corporation2.2%
- 5Lenovo Group Limited1.9%
- 6Industrial and Commercial Bank of China Limited (Class H)1.8%
- 7Jentech Precision Industrial Company Ltd.1.8%
- 8MediaTek Inc.1.7%
- 9Bank of Communications Co., Ltd. (Class H)1.6%
- 10Kasikornbank Pcl1.6%
AFEM holds 136 securities in total. These 10 are 37.9% of the fund.
Where the money is invested
Sectors
- Technology36.2%
- Financial Services22.0%
- Consumer Cyclical10.9%
- Industrials8.3%
- Energy6.7%
- Communication Services4.9%
Countries
- Taiwan31.6%
- South Korea17.3%
- India11.5%
- China11.5%
- Hong Kong6.4%
- Brazil5.3%
How to invest in AFEM from India
Step 1
Open your Paasa account
KYC takes a few minutes: PAN, Aadhaar and address proof. Your brokerage account is opened in your own name with Interactive Brokers.
Step 2
Add funds from your Indian bank account
Remit up to $250,000 a year under the RBI's Liberalised Remittance Scheme. Your bank converts the rupees to US dollars at its rate on the day you remit.
Step 3
Search AFEM and buy
Find the fund by its ticker, AFEM, on NASDAQ, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in AFEM from India
What AFEM holds
First Trust RiverFront Dynamic Emerging Markets ETF is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing primarily in equity securities of companies in emerging market countries. The fund uses a dynamic, research-driven approach to allocate across countries, sectors, and companies based on valuation, economic conditions, market trends, and other factors.
Hold a dollar asset
AFEM is priced in US dollars, so a weaker rupee adds to what it's worth in rupees. The rupee depreciated over 85% against the dollar between 2010 and 2025.
Buy a fraction of a unit
Buy by amount, not by unit, and get the matching fraction of one AFEM unit. There is no minimum trade size.
Paasa handles the paperwork
Investing abroad brings paperwork with it: remittance filings, capital gains reporting, foreign asset disclosure. Paasa prepares all of it for you. Your India-ready tax reports arrive at year end, ready to file.
Planning to hold more than $60,000 in US ETFs? Here's what US estate tax means for you.
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family.
A UCITS ETF tracking a similar market sits outside US estate tax.
Frequently asked questions
Can I buy AFEM from India?
Yes. Indian residents can buy First Trust Active Factor Emerging Markets ETF (AFEM) through Paasa. It is listed on NASDAQ and trades in US dollars. Your money leaves India under the RBI's Liberalised Remittance Scheme, and the units are held in your own name at Interactive Brokers.
What does AFEM invest in?
First Trust Active Factor Emerging Markets ETF holds 136 securities. Its largest holdings are Taiwan Semiconductor Manufacturing Company Ltd. (13.8%), Samsung Electronics Co., Ltd. (7.8%) and SK Hynix Inc. (3.7%). Technology is its largest sector at 36.2%. It is a distributing fund domiciled in the US.
What is the expense ratio of AFEM?
First Trust Active Factor Emerging Markets ETF has an expense ratio of 0.85% a year, taken from the fund's assets rather than billed to you. The fund manages about $84.1M.
How are AFEM dividends taxed in India?
First Trust Active Factor Emerging Markets ETF is a distributing fund. It pays the dividends from its holdings out to you in cash. The US withholds 25% tax on dividends before they reach you; Paasa files Form W-8BEN for you, and the tax withheld can generally be claimed as a credit when you file in India. Dividends are taxed at your slab rate in India. Paasa's dividend report lists the gross dividend and any tax withheld for each payment.
What tax do I pay in India when I sell AFEM?
The US does not levy capital gains tax on shares for Indian residents. In India, gains on foreign ETF units held for more than 24 months are long-term and taxed at 12.5% without indexation, and gains on units held for 24 months or less are short-term and taxed at your income-tax slab rate. Both are worked out in rupees at the USD/INR rate on the day you bought and the day you sold, so the currency move is part of the gain. Paasa's capital-gains statement gives you the figures for your return.
Can I buy a fraction of one AFEM unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $98.64, and there is no minimum trade size.
What happens to my AFEM units if I pass away?
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family. A UCITS ETF tracking a similar market sits outside US estate tax. Paasa's US estate tax calculator shows the exposure for a given portfolio value.