NASDAQ · ETF
Invest in FEM ETF from India
Indian and foreign residents can buy First Trust Emerging Markets AlphaDEX Fund (FEM) units directly through Paasa.
By Paasa · Updated
FEM at a glance
- Price
- $30.78+$0.04 (0.13%)
- Expense ratio
- 0.8%
- Day range
- $30.56 – $30.84
- Assets
- $756.3M
- Domicile
- the US
- Holdings
- 157
- Launched
- 2011
- Dividends
- Distributing
- 1 month
- -6.16%
- 6 months
- -7.07%
- YTD
- +11.89%
- 1 year
- +12.21%
- 5 years
- +18.80%
Price change, excluding dividends.
Top 10 holdings
- 1BBB Foods Inc. (Class A)1.5%
- 2Kalyan Jewellers India Limited1.5%
- 3Fibra Uno Administracion, S.A. de C.V.1.4%
- 4PT Astra International Tbk1.4%
- 5Coca-Cola FEMSA, S.A.B. de C.V.1.3%
- 6Ather Energy Limited1.3%
- 7Turk Hava Yollari Aonim Ortakligi (THY)1.3%
- 8Global Unichip Corporation1.2%
- 9Tata Motors Passenger Vehicles Ltd.1.2%
- 10PGE Polska Grupa Energetyczna S.A.1.2%
FEM holds 157 securities in total. These 10 are 13.3% of the fund.
Where the money is invested
Sectors
- Technology17.6%
- Industrials16.7%
- Energy12.9%
- Basic Materials12.8%
- Financial Services11.5%
- Consumer Cyclical11.1%
Countries
- Taiwan28.2%
- China15.4%
- India11.3%
- Brazil8.3%
- Mexico5.7%
- South Africa5.7%
Similar funds
| Fund | Expense ratio | Assets |
|---|---|---|
| FEMULSEFirst Trust Emerging Markets AlphaDEX UCITS ETF | 0.8% | 14.5M |
Assets are shown in each fund's own reporting currency.
How to invest in FEM 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 FEM and buy
Find the fund by its ticker, FEM, 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 FEM from India
What FEM holds
FEM does not promise broad exposure to emerging markets, trying instead to build a portfolio of stocks positioned to outperform. The fund uses a selection methodology focused on growth and value factors to screen firms by scoring each security twice by both growth and value characteristics, assigning whatever score is highest as the stock's style score.
Hold a dollar asset
FEM 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 FEM 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 FEM from India?
Yes. Indian residents can buy First Trust Emerging Markets AlphaDEX Fund (FEM) 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 FEM invest in?
First Trust Emerging Markets AlphaDEX Fund holds 157 securities. Its largest holdings are BBB Foods Inc. (Class A) (1.5%), Kalyan Jewellers India Limited (1.5%) and Fibra Uno Administracion, S.A. de C.V. (1.4%). Technology is its largest sector at 17.6%. It is a distributing fund domiciled in the US.
What is the expense ratio of FEM?
First Trust Emerging Markets AlphaDEX Fund has an expense ratio of 0.8% a year, taken from the fund's assets rather than billed to you. The fund manages about $756.3M.
How are FEM dividends taxed in India?
First Trust Emerging Markets AlphaDEX Fund 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 FEM?
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 FEM unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $30.78, and there is no minimum trade size.
What happens to my FEM 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.