Euronext Amsterdam · UCITS ETF
Invest in VFEM ETF from India
Indian and foreign residents can buy Vanguard FTSE Emerging Markets UCITS ETF (VFEM) units directly through Paasa.
By Paasa · Updated
VFEM at a glance
- Price
- €71.79+€0.02 (0.03%)
- Expense ratio
- 0.17%
- Day range
- €71.40 – €72.09
- Assets
- €5.2B
- Domicile
- Ireland
- Holdings
- 2,360
- Launched
- 2012
- Dividends
- Distributing
- 1 month
- -0.91%
- 6 months
- +10.48%
- YTD
- +12.44%
- 1 year
- +12.66%
- 5 years
- +23.95%
Price change, excluding dividends.
Top 10 holdings
- 1Taiwan Semiconductor Manufacturing Co Ltd17.0%
- 2Tencent Holdings Ltd3.3%
- 3Alibaba Group Holding Ltd2.6%
- 4MediaTek Inc1.7%
- 5Delta Electronics Inc1.0%
- 6China Construction Bank Corp1.0%
- 7Hon Hai Precision Industry Co Ltd0.9%
- 8Reliance Industries Ltd0.8%
- 9HDFC Bank Ltd0.8%
- 10ICICI Bank Ltd0.7%
VFEM holds 2,360 securities in total. These 10 are 29.9% of the fund.
Where the money is invested
Sectors
- Technology32.2%
- Financial Services21.2%
- Consumer Cyclical9.9%
- Basic Materials7.6%
- Communication Services7.0%
- Industrials6.6%
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 |
| VFEALSEVanguard FTSE Emerging Markets UCITS ETF (USD) Accumulating | 0.17% | 6.1B |
| 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 VFEM 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 EUR when you buy.
Step 3
Search VFEM and buy
Find the fund by its ticker, VFEM, on Euronext Amsterdam, and place your order.
Why invest in VFEM from India
What VFEM holds
This fund aims to mirror the performance of the FTSE Emerging Index by utilizing a passive, indexing-based investment strategy that involves directly purchasing the underlying securities.
Outside US estate tax
VFEM 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 VFEM's UCITS structure matters for Indian investors
VFEM 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 VFEM from India?
Yes. Indian residents can buy Vanguard FTSE Emerging Markets UCITS ETF (VFEM) through Paasa. It is listed on Euronext Amsterdam and trades in EUR. 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 VFEM 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%). Technology is its largest sector at 32.2%. It is a distributing fund domiciled in Ireland.
What is the expense ratio of VFEM?
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 €5.2B.
Is VFEM 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.
How are VFEM dividends taxed in India?
Vanguard FTSE Emerging Markets 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 VFEM?
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 EUR/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.