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London Stock Exchange ETF segment · UCITS ETF

Invest in VECP ETF from India

Indian and foreign residents can buy Vanguard Corporate Bond UCITS ETF (VECP) units directly through Paasa.

By Paasa · Updated

VECP at a glance

Price
£40.14+£0.03 (0.08%)
Expense ratio
0.07%
Day range
£40.14 – £40.24
Assets
£5.2B
Domicile
Ireland
Holdings
3,598
Launched
2016
Dividends
Distributing
1 month
-1.81%
6 months
-2.50%
YTD
-5.41%
1 year
-5.70%
5 years
-13.58%

Price change, excluding dividends.

Live chart and fund data

Top 10 holdings

  1. 1Anheuser-Busch InBev SA/NV 2.00% 03/17/20280.1%
  2. 2ING Groep NV 4.50% 05/23/20290.1%
  3. 3Sky Ltd 2.75% 11/27/20290.1%
  4. 4Enel SpA 3.88% 05/26/20330.1%
  5. 5JPMorgan Chase & Co 1.96% 03/23/20300.1%
  6. 6Eni SpA 3.50% 05/26/20310.1%
  7. 7Honda Motor Co Ltd 3.50% 07/07/20290.1%
  8. 8Anheuser-Busch InBev SA/NV 2.75% 03/17/20360.1%
  9. 9Nestle Finance International Ltd 3.00% 01/23/20310.1%
  10. 10BPCE SA 3.38% 12/19/20310.1%

VECP holds 3,598 securities in total. These 10 are 1.1% of the fund.

Where the money is invested

Sectors

  • Corporate99.8%
  • Securitized0.2%

Countries

  • France18.5%
  • United States16.9%
  • Netherlands14.1%
  • United Kingdom9.0%
  • Germany8.6%
  • Spain5.4%

Similar funds

FundExpense ratioAssets
VDPALSEVanguard USD Corporate Bond UCITS ETF (USD) Accumulating0.07%4.7B
GIGLAMEXGoldman Sachs Corporate Bond ETF0.3%233.1M
FCORAMEXFidelity Corporate Bond ETF0.36%352.6M
IGCBLSEInvesco GBP Corporate Bond UCITS ETF0.1%345.6M
VECALSEEUR Corporate Bond UCITS ETF0.07%5.2B

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

How to invest in VECP 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 VECP and buy

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

Why invest in VECP from India

What VECP holds

This fund aims to mirror the performance of the Bloomberg Euro-Aggregate: Corporates Index. It achieves this through a passive, index-tracking investment strategy, which involves directly purchasing and holding the corporate bonds that comprise the index.

Outside US estate tax

VECP 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 VECP's UCITS structure matters for Indian investors

VECP is domiciled in Ireland, not the US, so it is not a US-situs asset and US estate tax does not apply to it.

Capital gains are taxed in India the same way as on a US-listed ETF.

See UCITS options

Frequently asked questions

Can I buy VECP from India?

Yes. Indian residents can buy Vanguard Corporate Bond UCITS ETF (VECP) 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 VECP invest in?

Vanguard Corporate Bond UCITS ETF holds 3,598 securities. Its largest holdings are Anheuser-Busch InBev SA/NV 2.00% 03/17/2028 (0.1%), ING Groep NV 4.50% 05/23/2029 (0.1%) and Sky Ltd 2.75% 11/27/2029 (0.1%). Securitized is its largest sector at 0.2%. It is a distributing fund domiciled in Ireland.

What is the expense ratio of VECP?

Vanguard Corporate Bond UCITS ETF has an expense ratio of 0.07% a year, taken from the fund's assets rather than billed to you. The fund manages about £5.2B.

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

Yes. Vanguard Corporate Bond 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.

How are VECP dividends taxed in India?

Vanguard Corporate Bond UCITS 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 VECP?

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 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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