London Stock Exchange ETF segment · UCITS ETF
Invest in USFM ETF from India
Indian and foreign residents can buy UBS MSCI USA Select Factor Mix UCITS ETF dis (USFM) units directly through Paasa.
By Paasa · Updated
USFM at a glance
- Price
- £32.74+£0.26 (0.80%)
- Expense ratio
- 0.25%
- Day range
- £32.74 – £32.82
- Assets
- £146.3M
- Domicile
- Ireland
- Holdings
- 2,147
- Launched
- 2017
- Dividends
- Distributing
- 1 month
- +0.52%
- 6 months
- +12.45%
- YTD
- +13.62%
- 1 year
- +16.27%
- 5 years
- +59.22%
Price change, excluding dividends.
Top 10 holdings
- 1JOHNSON & JOHNSON2.1%
- 2APPLE INC1.8%
- 3LAM RESEARCH CORP1.6%
- 4VISA INC-CLASS A SHARES1.5%
- 5MERCK & CO. INC.1.3%
- 6ADVANCED MICRO DEVICES1.2%
- 7BERKSHIRE HATHAWAY INC-CL B1.1%
- 8APPLIED MATERIALS INC1.0%
- 9MICROSOFT CORP1.0%
- 10INTEL CORP1.0%
USFM holds 2,147 securities in total. These 10 are 13.7% of the fund.
Where the money is invested
Sectors
- Technology21.9%
- Financial Services17.8%
- Healthcare14.7%
- Industrials11.9%
- Consumer Defensive7.5%
- Energy6.3%
Countries
- United States95.6%
- Ireland1.7%
- United Kingdom0.9%
- Switzerland0.8%
- Bermuda0.5%
- Canada0.2%
How to invest in USFM 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, and Interactive Brokers converts the dollars to GBP when you buy.
Step 3
Search USFM and buy
Find the fund by its ticker, USFM, on the London Stock Exchange ETF segment, and place your order.
Why invest in USFM from India
What USFM holds
This fund's primary goal is to closely mirror the price movements and overall returns of the MSCI USA Select Factor Mix Index, net of all associated fees. Investors should note that the fund's trading price on the stock exchange may not always precisely match its net asset value (NAV).
Outside US estate tax
USFM 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 USFM's UCITS structure matters for Indian investors
USFM 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 USFM from India?
Yes. Indian residents can buy UBS MSCI USA Select Factor Mix UCITS ETF dis (USFM) 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 USFM invest in?
UBS MSCI USA Select Factor Mix UCITS ETF dis holds 2,147 securities. Its largest holdings are JOHNSON & JOHNSON (2.1%), APPLE INC (1.8%) and LAM RESEARCH CORP (1.6%). Technology is its largest sector at 21.9%. It is a distributing fund domiciled in Ireland.
What is the expense ratio of USFM?
UBS MSCI USA Select Factor Mix UCITS ETF dis has an expense ratio of 0.25% a year, taken from the fund's assets rather than billed to you. The fund manages about £146.3M.
Is USFM a UCITS ETF, and why does that matter for Indian investors?
Yes. UBS MSCI USA Select Factor Mix UCITS ETF dis 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.
How are USFM dividends taxed in India?
UBS MSCI USA Select Factor Mix UCITS ETF dis 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 USFM?
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.