Can I buy AIRR from India?

Yes. Indian residents can buy First Trust RBA American Industrial RenaissanceTM ETF (AIRR) 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 AIRR invest in?

First Trust RBA American Industrial RenaissanceTM ETF holds 57 securities. Its largest holdings are IES Holdings, Inc. (3.6%), Forgent Power Solutions, Inc. (Class A) (3.6%) and Nextpower Inc. (Class A) (3.1%). Industrials is its largest sector at 79.2%. It is a distributing fund domiciled in the US.

What is the expense ratio of AIRR?

First Trust RBA American Industrial RenaissanceTM ETF has an expense ratio of 0.69% a year, taken from the fund's assets rather than billed to you. The fund manages about $9.0B.

How are AIRR dividends taxed in India?

First Trust RBA American Industrial RenaissanceTM 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 AIRR?

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 AIRR unit?

Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $104.19, and there is no minimum trade size.

What happens to my AIRR 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.

Invest in AIRR ETF From India: Price, Expense Ratio, Holdings & Tax

NASDAQ · ETF