London Stock Exchange ETF segment · UCITS ETF
Invest in NATO ETF from India
Indian and foreign residents can buy HANetf ICAV - Future of Defence UCITS ETF (NATO) units directly through Paasa.
By Paasa · Updated
NATO at a glance
- Price
- $20.14+$0.13 (0.62%)
- Expense ratio
- 0.49%
- Day range
- $20.05 – $20.32
- Assets
- $3.1B
- Domicile
- Ireland
- Holdings
- —
- Launched
- 2023
- Dividends
- Accumulating
- 1 month
- -3.31%
- 6 months
- +2.86%
- YTD
- +7.87%
- 1 year
- +5.50%
- 5 years
- —
Price change, excluding dividends.
Top 10 holdings
- 1BAE SYSTEMS PLC5.0%
- 2SAFRAN SA COMMON STOCK5.0%
- 3LOCKHEED MARTIN CORP4.8%
- 4GENERAL DYNAMICS CORP4.7%
- 5RTX CORP4.5%
- 6NORTHROP GRUMMAN CORP4.5%
- 7CROWDSTRIKE HOLDINGS INC4.4%
- 8PALO ALTO NETWORKS INC4.2%
- 9RHEINMETALL AG COMMON4.1%
- 10CISCO SYSTEMS INC COMMON4.0%
These 10 are 45.3% of the fund.
Where the money is invested
Sectors
- Industrials68.6%
- Technology31.4%
Countries
- United States60.8%
- France9.8%
- United Kingdom8.0%
- Germany5.9%
- Israel3.8%
- South Korea3.3%
How to invest in NATO 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 NATO and buy
Find the fund by its ticker, NATO, on the London Stock Exchange ETF segment, and place your order.
Why invest in NATO from India
What NATO holds
The investment objective of the Fund is to track the price and the performance, before fees and expenses, of the EQM Future ofnDefence Index (the Index).
Outside US estate tax
NATO 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 NATO's 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
NATO 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 NATO's UCITS structure matters for Indian investors
NATO 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 NATO from India?
Yes. Indian residents can buy HANetf ICAV - Future of Defence UCITS ETF (NATO) 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 NATO invest in?
Its largest holdings are BAE SYSTEMS PLC (5.0%), SAFRAN SA COMMON STOCK (5.0%) and LOCKHEED MARTIN CORP (4.8%). Industrials is its largest sector at 68.6%. It is an accumulating fund domiciled in Ireland.
What is the expense ratio of NATO?
HANetf ICAV - Future of Defence UCITS ETF has an expense ratio of 0.49% a year, taken from the fund's assets rather than billed to you. The fund manages about $3.1B.
Is NATO a UCITS ETF, and why does that matter for Indian investors?
Yes. HANetf ICAV - Future of Defence 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 NATO pay dividends?
No. HANetf ICAV - Future of Defence 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 NATO?
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.