London Stock Exchange ETF segment · UCITS ETF
Invest in HMEU ETF from India
Indian and foreign residents can buy HSBC MSCI Europe UCITS ETF (HMEU) units directly through Paasa.
By Paasa · Updated
HMEU at a glance
- Price
- £18.74+£0.07 (0.40%)
- Expense ratio
- 0.1%
- Day range
- £18.74 – £18.79
- Assets
- £385.9M
- Domicile
- Ireland
- Holdings
- —
- Launched
- 2010
- Dividends
- Distributing
- 1 month
- -1.93%
- 6 months
- +10.30%
- YTD
- +5.99%
- 1 year
- +13.26%
- 5 years
- +42.17%
Price change, excluding dividends.
Top 10 holdings
- 1Capital Cash Ctrl15.9%
- 2ASML Holding NV4.8%
- 3HSBC Holdings PLC2.5%
- 4Roche Holding AG Ordinary Shares new2.2%
- 5Shell PLC2.0%
- 6Novartis AG Registered Shares1.9%
- 7AstraZeneca PLC1.8%
- 8Nestle SA1.8%
- 9Siemens AG1.6%
- 10SAP SE1.5%
These 10 are 36.0% of the fund.
Where the money is invested
Sectors
- Financial Services25.0%
- Industrials19.1%
- Healthcare12.8%
- Technology9.5%
- Consumer Defensive8.3%
- Consumer Cyclical5.9%
Countries
- United Kingdom21.5%
- Switzerland15.1%
- Germany13.4%
- France13.3%
- Netherlands10.4%
- Spain6.1%
Similar funds
| Fund | Expense ratio | Assets |
|---|---|---|
| IEURAMEXiShares Core MSCI Europe ETF | 0.1% | 9.4B |
| SMEALSEiShares Core MSCI Europe UCITS ETF EUR (Acc) | 0.12% | 13.6B |
| ISEULSEiShares Core MSCI Europe UCITS ETF | 0.12% | 12.0B |
| XMEDLSEXtrackers MSCI Europe UCITS ETF 1C | 0.12% | 9.6B |
| DBEUAMEXXtrackers MSCI Europe Hedged Equity ETF | 0.45% | 774.5M |
Assets are shown in each fund's own reporting currency.
How to invest in HMEU 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 HMEU and buy
Find the fund by its ticker, HMEU, on the London Stock Exchange ETF segment, and place your order.
Why invest in HMEU from India
What HMEU holds
Its primary objective is to closely replicate the investment performance of the MSCI Europe Index. This is achieved by either directly investing in, or gaining exposure to, the shares of the companies that constitute this index.
Outside US estate tax
HMEU 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 HMEU's UCITS structure matters for Indian investors
HMEU 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 HMEU from India?
Yes. Indian residents can buy HSBC MSCI Europe UCITS ETF (HMEU) 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 HMEU invest in?
Its largest holdings are Capital Cash Ctrl (15.9%), ASML Holding NV (4.8%) and HSBC Holdings PLC (2.5%). Financial Services is its largest sector at 25.0%. It is a distributing fund domiciled in Ireland.
What is the expense ratio of HMEU?
HSBC MSCI Europe UCITS ETF has an expense ratio of 0.1% a year, taken from the fund's assets rather than billed to you. The fund manages about £385.9M.
Is HMEU a UCITS ETF, and why does that matter for Indian investors?
Yes. HSBC MSCI Europe 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.
How are HMEU dividends taxed in India?
HSBC MSCI Europe UCITS 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 HMEU?
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.