NASDAQ · ETF
Invest in VTIP ETF from India
Indian and foreign residents can buy Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) units directly through Paasa.
By Paasa · Updated
VTIP at a glance
- Price
- $49.22+$0.04 (0.07%)
- Expense ratio
- 0.03%
- Day range
- $49.21 – $49.27
- Assets
- $73.2B
- Domicile
- the US
- Holdings
- 21
- Launched
- 2012
- Dividends
- Distributing
- 1 month
- -0.87%
- 6 months
- -1.16%
- YTD
- -0.51%
- 1 year
- -2.77%
- 5 years
- -6.39%
Price change, excluding dividends.
Top 10 holdings
- 1United States Treasury Inflation Indexed Bonds 1.13% 10/15/20305.4%
- 2United States Treasury Inflation Indexed Bonds 1.25% 04/15/20315.3%
- 3United States Treasury Inflation Indexed Bonds 1.63% 04/15/20305.3%
- 4United States Treasury Inflation Indexed Bonds 1.63% 10/15/20295.2%
- 5United States Treasury Inflation Indexed Bonds 2.13% 04/15/20295.0%
- 6United States Treasury Inflation Indexed Bonds 2.38% 10/15/20285.0%
- 7United States Treasury Inflation Indexed Bonds 1.63% 10/15/20274.8%
- 8United States Treasury Inflation Indexed Bonds 0.13% 04/15/20274.8%
- 9United States Treasury Inflation Indexed Bonds 1.25% 04/15/20284.7%
- 10United States Treasury Inflation Indexed Bonds 0.13% 10/15/20264.7%
VTIP holds 21 securities in total. These 10 are 50.0% of the fund.
Where the money is invested
Countries
- United States99.9%
- Other0.1%
How to invest in VTIP 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 VTIP and buy
Find the fund by its ticker, VTIP, 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 VTIP from India
What VTIP holds
This exchange-traded fund seeks to mirror an index tracking U.S. Treasury inflation-protected securities (TIPS) with maturities of less than five years. It is designed to produce returns closely aligned with actual short-term inflation and aims to provide investors with a more stable investment profile compared to TIPS funds holding longer-dated assets.
Hold a dollar asset
VTIP 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 VTIP 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 VTIP from India?
Yes. Indian residents can buy Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) 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 VTIP invest in?
Vanguard Short-Term Inflation-Protected Securities ETF holds 21 securities. Its largest holdings are United States Treasury Inflation Indexed Bonds 1.13% 10/15/2030 (5.4%), United States Treasury Inflation Indexed Bonds 1.25% 04/15/2031 (5.3%) and United States Treasury Inflation Indexed Bonds 1.63% 04/15/2030 (5.3%). It is a distributing fund domiciled in the US.
What is the expense ratio of VTIP?
Vanguard Short-Term Inflation-Protected 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 $73.2B.
How are VTIP dividends taxed in India?
Vanguard Short-Term Inflation-Protected 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 VTIP?
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 VTIP unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $49.22, and there is no minimum trade size.
What happens to my VTIP 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.