NASDAQ · ETF
Invest in VMBS ETF from India
Indian and foreign residents can buy Vanguard Mortgage-Backed Securities ETF (VMBS) units directly through Paasa.
By Paasa · Updated
VMBS at a glance
- Price
- $44.32-$0.14 (0.30%)
- Expense ratio
- 0.03%
- Day range
- $44.30 – $44.59
- Assets
- $17.6B
- Domicile
- the US
- Holdings
- 344
- Launched
- 2009
- Dividends
- Distributing
- 1 month
- -4.04%
- 6 months
- -4.82%
- YTD
- -6.07%
- 1 year
- -5.73%
- 5 years
- -16.84%
Price change, excluding dividends.
Top 10 holdings
- 1MKTLIQ 12/31/20494.6%
- 2US Dollar0.5%
- 3Ginnie Mae II Pool 5.00% 11/20/20540.3%
- 4Ginnie Mae II Pool 5.00% 01/20/20560.3%
- 5Ginnie Mae II Pool 5.00% 06/20/20560.3%
- 6Ginnie Mae II Pool 5.00% 02/20/20560.3%
- 7Fannie Mae Pool 5.50% 03/01/20560.3%
- 8Ginnie Mae II Pool 4.50% 11/20/20540.2%
- 9Ginnie Mae 6.00% 10/20/20260.2%
- 10Freddie Mac Pool 2.00% 02/01/20520.2%
VMBS holds 344 securities in total. These 10 are 7.2% of the fund.
Where the money is invested
Countries
- Other100.0%
Similar funds
| Fund | Expense ratio | Assets |
|---|---|---|
| JMTGAMEXJPMorgan Mortgage-Backed Securities ETF | 0.37% | 6.8B |
Assets are shown in each fund's own reporting currency.
How to invest in VMBS 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 VMBS and buy
Find the fund by its ticker, VMBS, on NASDAQ, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in VMBS from India
What VMBS holds
This ETF is designed to deliver a consistent and reasonable stream of current income for its investors. It primarily allocates its assets to pass-through debt instruments that are secured by U.S. mortgages and guaranteed by federal entities such as Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).
Hold a dollar asset
VMBS 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 VMBS 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 VMBS from India?
Yes. Indian residents can buy Vanguard Mortgage-Backed Securities ETF (VMBS) through Paasa. It is listed on NASDAQ 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 VMBS invest in?
Vanguard Mortgage-Backed Securities ETF holds 344 securities. Its largest holdings are MKTLIQ 12/31/2049 (4.6%), US Dollar (0.5%) and Ginnie Mae II Pool 5.00% 11/20/2054 (0.3%). It is a distributing fund domiciled in the US.
What is the expense ratio of VMBS?
Vanguard Mortgage-Backed Securities ETF has an expense ratio of 0.03% a year, taken from the fund's assets rather than billed to you. The fund manages about $17.6B.
How are VMBS dividends taxed in India?
Vanguard Mortgage-Backed Securities 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 VMBS?
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 VMBS unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $44.32, and there is no minimum trade size.
What happens to my VMBS 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.