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London Stock Exchange ETF segment · UCITS ETF

Invest in IBGS ETF from India

Indian and foreign residents can buy iShares € Govt Bond 1-3yr UCITS ETF (IBGS) units directly through Paasa.

By Paasa · Updated

IBGS at a glance

Price
£119.63+£0.21 (0.17%)
Expense ratio
0.1%
Day range
£119.55 – £119.76
Assets
£1.5B
Domicile
Ireland
Holdings
15
Launched
2006
Dividends
Distributing
1 month
-1.06%
6 months
-1.21%
YTD
-3.52%
1 year
-3.20%
5 years
-2.19%

Price change, excluding dividends.

Live chart and fund data

Top 10 holdings

  1. 1FRANCE (REPUBLIC OF) 2.40% 09/24/2028 (FRTR)15.0%
  2. 2FRANCE (REPUBLIC OF) RegS 2.50% 09/24/2027 (FRTR)12.7%
  3. 3SPAIN (KINGDOM OF) 2.40% 05/31/2028 (SPGB)7.1%
  4. 4GERMANY (FEDERAL REPUBLIC OF) RegS 2.50% 06/14/2028 (DEGV)7.0%
  5. 5GERMANY (FEDERAL REPUBLIC OF) 2.00% 12/16/2027 (BKO)6.9%
  6. 6GERMANY (FEDERAL REPUBLIC OF) RegS 2.10% 03/15/2028 (BKO)6.9%
  7. 7GERMANY (FEDERAL REPUBLIC OF) RegS 1.90% 09/16/2027 (BKO)5.9%
  8. 8ITALY (REPUBLIC OF) RegS 2.20% 02/28/2028 (BTPS)5.9%
  9. 9GERMANY (FEDERAL REPUBLIC OF) RegS 2.70% 09/13/2028 (BKO)5.3%
  10. 10ITALY (REPUBLIC OF) RegS 2.40% 03/15/2029 (BTPS)5.3%

IBGS holds 15 securities in total. These 10 are 78.0% of the fund.

Where the money is invested

Sectors

  • Government99.5%
  • Corporate0.0%

Countries

  • Germany32.1%
  • France28.1%
  • Italy27.5%
  • Spain12.1%
  • Ireland1.4%

How to invest in IBGS from India

  1. 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.

  2. 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.

  3. Step 3

    Search IBGS and buy

    Find the fund by its ticker, IBGS, on the London Stock Exchange ETF segment, and place your order.

Why invest in IBGS from India

What IBGS holds

The investment objective of this Fund is to provide investors with a total return, taking into account both capital and income returns, which reflects the return on EMU government bonds.

Outside US estate tax

IBGS 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 IBGS' UCITS structure matters for Indian investors

IBGS is domiciled in Ireland, not the US, so it is not a US-situs asset and US estate tax does not apply to it.

Capital gains are taxed in India the same way as on a US-listed ETF.

See UCITS options

Frequently asked questions

Can I buy IBGS from India?

Yes. Indian residents can buy iShares € Govt Bond 1-3yr UCITS ETF (IBGS) 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 IBGS invest in?

iShares € Govt Bond 1-3yr UCITS ETF holds 15 securities. Its largest holdings are FRANCE (REPUBLIC OF) 2.40% 09/24/2028 (FRTR) (15.0%), FRANCE (REPUBLIC OF) RegS 2.50% 09/24/2027 (FRTR) (12.7%) and SPAIN (KINGDOM OF) 2.40% 05/31/2028 (SPGB) (7.1%). Corporate is its largest sector at 0.0%. It is a distributing fund domiciled in Ireland.

What is the expense ratio of IBGS?

iShares € Govt Bond 1-3yr 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 £1.5B.

Is IBGS a UCITS ETF, and why does that matter for Indian investors?

Yes. iShares € Govt Bond 1-3yr 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.

How are IBGS dividends taxed in India?

iShares € Govt Bond 1-3yr 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 IBGS?

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 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.

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