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London Stock Exchange ETF segment · UCITS ETF

Invest in IESG ETF from India

Indian and foreign residents can buy iShares MSCI Europe SRI UCITS ETF (IESG) units directly through Paasa.

By Paasa · Updated

IESG at a glance

Price
£66.11+£0.24 (0.37%)
Expense ratio
0.2%
Day range
£66.06 – £66.14
Assets
£2.6B
Domicile
Ireland
Holdings
120
Launched
2011
Dividends
—
1 month
-2.01%
6 months
+14.98%
YTD
+7.57%
1 year
+10.65%
5 years
+28.02%

Price change, excluding dividends.

Live chart and fund data

Top 10 holdings

  1. 1ASML HOLDING7.5%
  2. 2NOVARTIS AG4.8%
  3. 3SCHNEIDER ELECTRIC4.3%
  4. 4ABB LTD4.0%
  5. 5LOREAL SA3.1%
  6. 6ING GROEP3.1%
  7. 7ZURICH INSURANCE GROUP AG3.0%
  8. 8SAP2.3%
  9. 9AXA SA2.3%
  10. 10MUENCHENER RUECKVERSICHERUNGS-GESE2.2%

IESG holds 120 securities in total. These 10 are 36.7% of the fund.

Where the money is invested

Sectors

  • Financial Services25.7%
  • Industrials19.7%
  • Healthcare12.1%
  • Technology11.9%
  • Consumer Defensive9.4%
  • Basic Materials6.5%

Countries

  • Switzerland23.4%
  • France18.1%
  • Netherlands14.9%
  • United Kingdom12.2%
  • Germany9.9%
  • Sweden4.4%

Similar funds

FundExpense ratioAssets
ESIELSEiShares MSCI Europe SRI UCITS ETF EUR (Acc)0.18%241.8M
36B3XETRAiShares MSCI Europe SRI UCITS ETF0.2%194.3M
IDSEAMSiShares MSCI Europe SRI UCITS ETF0.2%23.7M
CBUDXETRAiShares MSCI Europe SRI UCITS ETF0.23%8.0M

Assets are shown in each fund's own reporting currency.

How to invest in IESG 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 IESG and buy

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

Why invest in IESG from India

What IESG holds

This fund endeavors to match the performance of a European equity index, which features companies rigorously evaluated for their environmental, social, and governance (ESG) credentials. Effective November 27, 2019, the underlying benchmark for the fund was modified, shifting from the MSCI Europe SRI Index to the MSCI Europe SRI Select Reduced Fossil Fuel Index.

Outside US estate tax

IESG 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 IESG's UCITS structure matters for Indian investors

IESG 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.

See UCITS options

Frequently asked questions

Can I buy IESG from India?

Yes. Indian residents can buy iShares MSCI Europe SRI UCITS ETF (IESG) 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 IESG invest in?

iShares MSCI Europe SRI UCITS ETF holds 120 securities. Its largest holdings are ASML HOLDING (7.5%), NOVARTIS AG (4.8%) and SCHNEIDER ELECTRIC (4.3%). Financial Services is its largest sector at 25.7%. The fund is domiciled in Ireland.

What is the expense ratio of IESG?

iShares MSCI Europe SRI UCITS ETF has an expense ratio of 0.2% a year, taken from the fund's assets rather than billed to you. The fund manages about £2.6B.

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

Yes. iShares MSCI Europe SRI 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.

What tax do I pay in India when I sell IESG?

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.

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