NYSE Arca · ETF
Invest in PREF ETF from India
Indian and foreign residents can buy Principal Spectrum Preferred Securities Active ETF (PREF) units directly through Paasa.
By Paasa · Updated
PREF at a glance
- Price
- $18.35-$0.04 (0.22%)
- Expense ratio
- 0.55%
- Day range
- $18.33 – $18.41
- Assets
- $1.8B
- Domicile
- the US
- Holdings
- 159
- Launched
- 2017
- Dividends
- Distributing
- 1 month
- -2.76%
- 6 months
- -1.56%
- YTD
- -3.67%
- 1 year
- -4.13%
- 5 years
- -11.52%
Price change, excluding dividends.
Top 10 holdings
- 1BANK OF AMERICA CORP JR SUBORDINA 12/99 VAR2.7%
- 2ENBRIDGE INC SUBORDINATED 01/84 VAR2.3%
- 3METLIFE INC SUBORDINATED 03/56 VAR2.2%
- 4TORONTO DOMINION BANK JR SUBORDINA 10/82 VAR2.0%
- 5PNC FINANCIAL SERVICES JR SUBORDINA 12/99 VAR1.8%
- 6JPMORGAN CHASE + CO JR SUBORDINA 12/99 VAR1.8%
- 7CHARLES SCHWAB CORP JR SUBORDINA 12/99 VAR1.8%
- 8BANK OF NOVA SCOTIA JR SUBORDINA 10/82 VAR1.7%
- 9M+T BANK CORPORATION JR SUBORDINA 12/99 VAR1.6%
- 10BANK OF AMERICA CORP JR SUBORDINA 12/99 VAR1.6%
PREF holds 159 securities in total. These 10 are 19.5% of the fund.
Where the money is invested
Countries
- United States66.6%
- Canada23.5%
- Japan5.0%
- United Kingdom2.5%
- France1.5%
- Other0.6%
How to invest in PREF 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 PREF and buy
Find the fund by its ticker, PREF, on NYSE Arca, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in PREF from India
What PREF holds
The Fund seeks to provide current income. The Fund invests at least 80% of its net assets in preferred securities particularly focusing on securities known as $1,000 par preferred securities, issued in large, institutional lot sizes, typically by U.S. and non-U.S. financial services companies and other corporations.
Hold a dollar asset
PREF 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 PREF 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 PREF from India?
Yes. Indian residents can buy Principal Spectrum Preferred Securities Active ETF (PREF) through Paasa. It is listed on NYSE Arca 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 PREF invest in?
Principal Spectrum Preferred Securities Active ETF holds 159 securities. Its largest holdings are BANK OF AMERICA CORP JR SUBORDINA 12/99 VAR (2.7%), ENBRIDGE INC SUBORDINATED 01/84 VAR (2.3%) and METLIFE INC SUBORDINATED 03/56 VAR (2.2%). It is a distributing fund domiciled in the US.
What is the expense ratio of PREF?
Principal Spectrum Preferred Securities Active ETF has an expense ratio of 0.55% a year, taken from the fund's assets rather than billed to you. The fund manages about $1.8B.
How are PREF dividends taxed in India?
Principal Spectrum Preferred Securities Active 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 PREF?
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 PREF unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $18.35, and there is no minimum trade size.
What happens to my PREF 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.