NYSE Arca · ETF
Invest in CBON ETF from India
Indian and foreign residents can buy VanEck China Bond ETF (CBON) units directly through Paasa.
By Paasa · Updated
CBON at a glance
- Price
- $24.18+$0.04 (0.17%)
- Expense ratio
- 0.5%
- Day range
- $24.16 – $24.18
- Assets
- $28.8M
- Domicile
- the US
- Holdings
- 35
- Launched
- 2014
- Dividends
- Distributing
- 1 month
- +0.54%
- 6 months
- +4.09%
- YTD
- +6.10%
- 1 year
- +8.28%
- 5 years
- -0.86%
Price change, excluding dividends.
Top 10 holdings
- 1China National Petroleum Corp5.3%
- 2State Grid Corp Of China5.3%
- 3Bank Of China Ltd5.3%
- 4China Three Gorges Corp5.2%
- 5China Government Bond5.1%
- 6China Government Bond4.8%
- 7China Southern Power Grid Co Ltd3.7%
- 8Agricultural Development Bank Of China3.5%
- 9China Petrochemical Corp3.3%
- 10Bank Of Communications Co Ltd3.1%
CBON holds 35 securities in total. These 10 are 44.6% of the fund.
Where the money is invested
Countries
- China96.1%
- Other3.9%
How to invest in CBON 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 CBON and buy
Find the fund by its ticker, CBON, on NYSE Arca, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in CBON from India
What CBON holds
The VanEck China Bond ETF (CBON) is designed to closely track the total return of the FTSE Chinese Broad Bond 0 – 10 Diversified Select Index (CFIICNDS), before accounting for the ETF's operational costs. This underlying index consists of various fixed-rate, Renminbi (RMB)-denominated bonds issued in the People's Republic of China by a range of Chinese entities, including corporate credit providers, the government, and state-backed or quasi-governmental institutions like policy banks.
Hold a dollar asset
CBON 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 CBON 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 CBON from India?
Yes. Indian residents can buy VanEck China Bond ETF (CBON) through Paasa. It is listed on NYSE Arca 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 CBON invest in?
VanEck China Bond ETF holds 35 securities. Its largest holdings are China National Petroleum Corp (5.3%), State Grid Corp Of China (5.3%) and Bank Of China Ltd (5.3%). It is a distributing fund domiciled in the US.
What is the expense ratio of CBON?
VanEck China Bond ETF has an expense ratio of 0.5% a year, taken from the fund's assets rather than billed to you. The fund manages about $28.8M.
How are CBON dividends taxed in India?
VanEck China Bond ETF is a distributing fund. It pays the dividends from its holdings out to you in cash. 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 CBON?
The US does not levy capital gains tax on shares for Indian residents. Gains are taxable in India. Debt-oriented funds can be taxed differently from equity funds, so confirm your rate before selling. The gain is 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 CBON unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $24.18, and there is no minimum trade size.
What happens to my CBON 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.