London Stock Exchange ETF segment · UCITS ETF
Invest in VFEA ETF from India
Indian and foreign residents can buy Vanguard FTSE Emerging Markets UCITS ETF (VFEA) units directly through Paasa.
By Paasa · Updated
VFEA at a glance
- Price
- $88.65+$0.60 (0.68%)
- Expense ratio
- 0.17%
- Day range
- $88.34 – $89.00
- Assets
- $6.1B
- Domicile
- Ireland
- Holdings
- 2,360
- Launched
- 2019
- Dividends
- Accumulating
- 1 month
- -0.42%
- 6 months
- +11.09%
- YTD
- +11.86%
- 1 year
- +14.52%
- 5 years
- +38.39%
Price change, excluding dividends.
Top 10 holdings
- 1Taiwan Semiconductor Manufacturing Co Ltd2330.TW17.0%
- 2Tencent Holdings Ltd0700.HK3.3%
- 3Alibaba Group Holding Ltd9988.HK2.6%
- 4MediaTek Inc2454.TW1.7%
- 5Delta Electronics Inc2308.TW1.0%
- 6China Construction Bank Corp0939.HK1.0%
- 7Hon Hai Precision Industry Co Ltd2317.TW0.9%
- 8Reliance Industries LtdRELIANCE.BO0.8%
- 9HDFC Bank LtdHDB0.8%
- 10ICICI Bank LtdIBN0.7%
VFEA holds 2,360 securities in total. These 10 are 29.9% of the fund.
Where the money is invested
Countries
- Taiwan (Province of China)32.8%
- China24.8%
- India15.7%
- Brazil4.2%
- South Africa3.3%
- Saudi Arabia3.2%
Similar funds
| Fund | Expense ratio | Assets |
|---|---|---|
| VWOAMEXVanguard FTSE Emerging Markets ETF | 0.06% | 168.5B |
| VDEMLSEVanguard FTSE Emerging Markets UCITS ETF (USD) Distributing | 0.17% | 6.1B |
Assets are shown in each fund's own reporting currency.
How to invest in VFEA 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 VFEA and buy
Find the fund by its ticker, VFEA, on the London Stock Exchange ETF segment, and place your order.
Why invest in VFEA from India
What VFEA holds
This fund is designed to replicate the performance of the FTSE Emerging Index. It accomplishes this through a passive, index-tracking investment strategy, which involves directly purchasing the underlying securities that constitute the index.
Outside US estate tax
VFEA 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 VFEA'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
VFEA 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 VFEA's UCITS structure matters for Indian investors
VFEA 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 VFEA from India?
Yes. Indian residents can buy Vanguard FTSE Emerging Markets UCITS ETF (VFEA) 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 VFEA invest in?
Vanguard FTSE Emerging Markets UCITS ETF holds 2,360 securities. Its largest holdings are Taiwan Semiconductor Manufacturing Co Ltd (17.0%), Tencent Holdings Ltd (3.3%) and Alibaba Group Holding Ltd (2.6%). It is an accumulating fund domiciled in Ireland.
What is the expense ratio of VFEA?
Vanguard FTSE Emerging Markets UCITS ETF has an expense ratio of 0.17% a year, taken from the fund's assets rather than billed to you. The fund manages about $6.1B.
Is VFEA a UCITS ETF, and why does that matter for Indian investors?
Yes. Vanguard FTSE Emerging Markets 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 VFEA pay dividends?
No. Vanguard FTSE Emerging Markets 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 VFEA?
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.