NASDAQ · ETF
Invest in LMBS ETF from India
Indian and foreign residents can buy First Trust Low Duration Opportunities ETF (LMBS) units directly through Paasa.
By Paasa · Updated
LMBS at a glance
- Price
- $48.53-$0.05 (0.10%)
- Expense ratio
- 0.66%
- Day range
- $48.44 – $48.56
- Assets
- $6.5B
- Domicile
- the US
- Holdings
- 1,231
- Launched
- 2014
- Dividends
- Distributing
- 1 month
- -2.04%
- 6 months
- -2.06%
- YTD
- -3.02%
- 1 year
- -2.43%
- 5 years
- -4.05%
Price change, excluding dividends.
Top 10 holdings
- 1US 2YR NOTE (CBT) Dec2619.9%
- 2Fannie Mae or Freddie Mac TBA, 6%, due 06/01/20566.2%
- 3Fannie Mae or Freddie Mac TBA, 5.50%, due 04/01/20565.3%
- 4Freddie Mac FR SL2533, 4%, due 05/01/20492.1%
- 5Freddiemac Strip Series 459, Class GH, 4.80%, due 07/25/20312.0%
- 6Fannie Mae or Freddie Mac TBA, 6%, due 05/01/20561.8%
- 7Freddiemac Strip Series 470, Class JA, 4.80%, due 08/25/20311.8%
- 8Freddiemac Strip Series 462, Class AK, 4.65%, due 07/25/20311.8%
- 9Fannie Mae or Freddie Mac TBA, 3%, due 01/01/20521.6%
- 10GNMA G2 MA7366, 2%, due 05/20/20511.5%
LMBS holds 1,231 securities in total. These 10 are 44.0% of the fund.
Where the money is invested
Countries
- Other88.0%
- United States12.0%
How to invest in LMBS 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 LMBS and buy
Find the fund by its ticker, LMBS, 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 LMBS from India
What LMBS holds
First Trust Exchange-Traded Fund IV - First Trust Low Duration Opportunities ETF is an exchange traded fund launched and managed by First Trust Advisors LP. It invests in the fixed income markets of the United States.
Hold a dollar asset
LMBS 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 LMBS 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 LMBS from India?
Yes. Indian residents can buy First Trust Low Duration Opportunities ETF (LMBS) 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 LMBS invest in?
First Trust Low Duration Opportunities ETF holds 1,231 securities. Its largest holdings are US 2YR NOTE (CBT) Dec26 (19.9%), Fannie Mae or Freddie Mac TBA, 6%, due 06/01/2056 (6.2%) and Fannie Mae or Freddie Mac TBA, 5.50%, due 04/01/2056 (5.3%). It is a distributing fund domiciled in the US.
What is the expense ratio of LMBS?
First Trust Low Duration Opportunities ETF has an expense ratio of 0.66% a year, taken from the fund's assets rather than billed to you. The fund manages about $6.5B.
How are LMBS dividends taxed in India?
First Trust Low Duration Opportunities 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 LMBS?
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 LMBS unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $48.53, and there is no minimum trade size.
What happens to my LMBS 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.