London Stock Exchange ETF segment · UCITS ETF
Invest in EDG2 ETF from India
Indian and foreign residents can buy iShares MSCI EM CTB Enhanced ESG UCITS ETF (EDG2) units directly through Paasa.
By Paasa · Updated
EDG2 at a glance
- Price
- £6.68+£0.21 (3.29%)
- Expense ratio
- 0.18%
- Day range
- £6.58 – £6.68
- Assets
- £5.9B
- Domicile
- Ireland
- Holdings
- 1,036
- Launched
- 2019
- Dividends
- —
- 1 month
- -6.60%
- 6 months
- -4.46%
- YTD
- +15.94%
- 1 year
- +13.57%
- 5 years
- +34.58%
Price change, excluding dividends.
Top 10 holdings
- 1TAIWAN SEMICONDUCTOR MANUFACTURING15.3%
- 2SAMSUNG ELECTRONICS LTD6.1%
- 3SK HYNIX4.5%
- 4TENCENT HOLDINGS2.9%
- 5ALIBABA GROUP HOLDING2.0%
- 6MEDIATEK1.5%
- 7CHINA CONSTRUCTION BANK CORP H1.1%
- 8SAMSUNG ELECTRONICS NON VOTING PRE1.1%
- 9RELIANCE INDUSTRIES LTD1.0%
- 10HDFC BANK1.0%
EDG2 holds 1,036 securities in total. These 10 are 36.5% of the fund.
Where the money is invested
Sectors
- Information Technology38.4%
- Financials21.2%
- Consumer Discretionary7.8%
- Communication6.9%
- Industrials6.5%
- Materials5.6%
Countries
- Taiwan26.5%
- China21.0%
- South Korea17.4%
- India13.2%
- Brazil4.1%
- South Africa2.6%
Similar funds
| Fund | Expense ratio | Assets |
|---|---|---|
| EEDMLSEiShares MSCI EM CTB Enhanced ESG UCITS ETF USD Inc | 0.18% | 1.2B |
Assets are shown in each fund's own reporting currency.
How to invest in EDG2 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, and Interactive Brokers converts the dollars to GBP when you buy.
Step 3
Search EDG2 and buy
Find the fund by its ticker, EDG2, on the London Stock Exchange ETF segment, and place your order.
Why invest in EDG2 from India
What EDG2 holds
The fund's objective is to replicate the returns of an index composed of a select group of emerging market equities. These securities originate from the wider MSCI Emerging Markets Index, but the final selection rigorously screens out companies that do not comply with the environmental, social, and governance (ESG) exclusion criteria established by the index provider.
Outside US estate tax
EDG2 is domiciled in Ireland, not the US, so it is not a US-situs asset and US estate tax does not apply to it.
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.
Why EDG2's UCITS structure matters for Indian investors
EDG2 is domiciled in Ireland, not the US, so it is not a US-situs asset and US estate tax does not apply to it.
On the US shares the fund holds, the 15% US dividend withholding is paid inside the fund, and you cannot claim it as a Foreign Tax Credit in India.
Capital gains are taxed in India the same way as on a US-listed ETF.
Frequently asked questions
Can I buy EDG2 from India?
Yes. Indian residents can buy iShares MSCI EM CTB Enhanced ESG UCITS ETF (EDG2) through Paasa. It is listed on the London Stock Exchange ETF segment and trades in GBP. 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 EDG2 invest in?
iShares MSCI EM CTB Enhanced ESG UCITS ETF holds 1,036 securities. Its largest holdings are TAIWAN SEMICONDUCTOR MANUFACTURING (15.3%), SAMSUNG ELECTRONICS LTD (6.1%) and SK HYNIX (4.5%). Information Technology is its largest sector at 38.4%. The fund is domiciled in Ireland.
What is the expense ratio of EDG2?
iShares MSCI EM CTB Enhanced ESG UCITS ETF has an expense ratio of 0.18% a year, taken from the fund's assets rather than billed to you. The fund manages about £5.9B.
Is EDG2 a UCITS ETF, and why does that matter for Indian investors?
Yes. iShares MSCI EM CTB Enhanced ESG UCITS ETF is a UCITS fund domiciled in Ireland. Because it is domiciled outside the US, it is not a US-situs asset, so US estate tax does not apply to it. On the US shares the fund holds, the 15% US dividend withholding is paid inside the fund, and you cannot claim it as a Foreign Tax Credit in India.
What tax do I pay in India when I sell EDG2?
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 GBP/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.