London Stock Exchange ETF segment · UCITS ETF
Invest in IEMS ETF from India
Indian and foreign residents can buy iShares MSCI EM Small UCITS ETF (IEMS) units directly through Paasa.
By Paasa · Updated
IEMS at a glance
- Price
- $113.08+$0.45 (0.40%)
- Expense ratio
- 0.74%
- Day range
- $113.03 – $113.79
- Assets
- $335.4M
- Domicile
- Ireland
- Holdings
- 1,809
- Launched
- 2009
- Dividends
- Accumulating
- 1 month
- -2.74%
- 6 months
- +10.65%
- YTD
- +10.59%
- 1 year
- +12.88%
- 5 years
- +27.13%
Price change, excluding dividends.
Top 10 holdings
- 1TAIWAN UNION TECHNOLOGY0.7%
- 2KINSUS INTERCONNECT TECHNOLOGY COR0.6%
- 3NAN YA PRINTED CIRCUIT BOARD CORP0.6%
- 4POWERCHIP SEMICONDUCTOR MANUFACTUR0.5%
- 5TRIPOD TECHNOLOGY0.4%
- 6COMPEQ MANUFACTURING LTD0.4%
- 7MACRONIX INTERNATIONAL0.4%
- 8LAND MARK CORP0.4%
- 9UNITED INTEGRATED SERVICES0.4%
- 10EMEMORY TECHNOLOGY INC0.4%
IEMS holds 1,809 securities in total. These 10 are 4.8% of the fund.
Where the money is invested
Sectors
- Technology24.3%
- Industrials18.2%
- Financial Services9.9%
- Consumer Cyclical9.2%
- Basic Materials8.9%
- Healthcare8.3%
Countries
- Taiwan (Province of China)27.1%
- India20.8%
- Korea (the Republic of)15.0%
- China6.6%
- South Africa3.4%
- Brazil3.3%
How to invest in IEMS 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 IEMS and buy
Find the fund by its ticker, IEMS, on the London Stock Exchange ETF segment, and place your order.
Why invest in IEMS from India
What IEMS holds
The primary aim of this investment fund is to mirror the financial performance of a specific benchmark. This index is exclusively made up of smaller capitalization companies operating in developing economies worldwide.
Outside US estate tax
IEMS is domiciled in Ireland, not the US, so it is not a US-situs asset and US estate tax does not apply to it.
Dividends reinvested for you
Dividends from IEMS' holdings are reinvested inside the fund, so nothing is paid out to you and there is no dividend to declare in India.
Hold a dollar asset
IEMS 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.
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 IEMS' UCITS structure matters for Indian investors
IEMS 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 IEMS from India?
Yes. Indian residents can buy iShares MSCI EM Small UCITS ETF (IEMS) through Paasa. It is listed on the London Stock Exchange ETF segment 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 IEMS invest in?
iShares MSCI EM Small UCITS ETF holds 1,809 securities. Its largest holdings are TAIWAN UNION TECHNOLOGY (0.7%), KINSUS INTERCONNECT TECHNOLOGY COR (0.6%) and NAN YA PRINTED CIRCUIT BOARD CORP (0.6%). Technology is its largest sector at 24.3%. It is an accumulating fund domiciled in Ireland.
What is the expense ratio of IEMS?
iShares MSCI EM Small UCITS ETF has an expense ratio of 0.74% a year, taken from the fund's assets rather than billed to you. The fund manages about $335.4M.
Is IEMS a UCITS ETF, and why does that matter for Indian investors?
Yes. iShares MSCI EM Small 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.
Does IEMS pay dividends?
No. iShares MSCI EM Small UCITS ETF is an accumulating fund. Dividends from its holdings are reinvested inside the fund, so nothing is paid out to you and there is no dividend to declare in India.
What tax do I pay in India when I sell IEMS?
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.