NASDAQ · ETF
Invest in FEMB ETF from India
Indian and foreign residents can buy First Trust Emerging Markets Local Currency Bond ETF (FEMB) units directly through Paasa.
By Paasa · Updated
FEMB at a glance
- Price
- $28.48+$0.05 (0.18%)
- Expense ratio
- 0.85%
- Day range
- $28.41 – $28.56
- Assets
- $375.8M
- Domicile
- the US
- Holdings
- 59
- Launched
- 2014
- Dividends
- Distributing
- 1 month
- -3.29%
- 6 months
- +0.25%
- YTD
- -4.46%
- 1 year
- -2.93%
- 5 years
- -12.58%
Price change, excluding dividends.
Top 10 holdings
- 1THAILAND GOVERNMENT BOND N/C, 3.39%, due 06/17/20375.2%
- 2INDIA GOVERNMENT BOND N/C, 7.18%, due 07/24/20374.5%
- 3MALAYSIA GOVERNMENT N/C, 2.632%, due 04/15/20314.2%
- 4US Dollar3.7%
- 5INDONESIA GOVERNMENT N/C, 8.375%, due 03/15/20343.7%
- 6INDONESIA GOVERNMENT N/C, 8.25%, due 05/15/20363.6%
- 7INDONESIA GOVERNMENT N/C, 9%, due 03/15/20293.5%
- 8POLAND GOVERNMENT BOND N/C, 6%, due 10/25/20333.5%
- 9MEX BONOS DESARR FIX RT N/C, 7.50%, due 05/26/20333.3%
- 10INDONESIA GOVERNMENT N/C, 7%, due 09/15/20303.0%
FEMB holds 59 securities in total. These 10 are 38.2% of the fund.
How to invest in FEMB 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 FEMB and buy
Find the fund by its ticker, FEMB, 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 FEMB from India
What FEMB holds
This Fund's primary goal is to achieve the highest possible total return while also generating current income for investors. Under typical market conditions, it aims to fulfill this objective by committing at least 80% of its net assets (including any borrowed funds) to debt obligations, such as bonds, notes, and bills, issued or guaranteed by entities in emerging market economies, provided these are denominated in the local currency of the issuer.
Hold a dollar asset
FEMB 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 FEMB 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 FEMB from India?
Yes. Indian residents can buy First Trust Emerging Markets Local Currency Bond ETF (FEMB) 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 FEMB invest in?
First Trust Emerging Markets Local Currency Bond ETF holds 59 securities. Its largest holdings are THAILAND GOVERNMENT BOND N/C, 3.39%, due 06/17/2037 (5.2%), INDIA GOVERNMENT BOND N/C, 7.18%, due 07/24/2037 (4.5%) and MALAYSIA GOVERNMENT N/C, 2.632%, due 04/15/2031 (4.2%). It is a distributing fund domiciled in the US.
What is the expense ratio of FEMB?
First Trust Emerging Markets Local Currency Bond 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 $375.8M.
How are FEMB dividends taxed in India?
First Trust Emerging Markets Local Currency 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 FEMB?
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 FEMB unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $28.48, and there is no minimum trade size.
What happens to my FEMB 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.