London Stock Exchange ETF segment · UCITS ETF
Invest in XCS2 ETF from India
Indian and foreign residents can buy Xtrackers II Australia Government Bond UCITS ETF (XCS2) units directly through Paasa.
By Paasa · Updated
XCS2 at a glance
- Price
- £125.09-£0.23 (0.18%)
- Expense ratio
- 0.25%
- Day range
- £125.07 – £125.09
- Assets
- £36.9M
- Domicile
- Luxembourg
- Holdings
- —
- Launched
- 2010
- Dividends
- —
- 1 month
- -1.76%
- 6 months
- +0.60%
- YTD
- +4.98%
- 1 year
- +4.80%
- 5 years
- —
Price change, excluding dividends.
Top 10 holdings
- 1AUSTRALIA (COMMONWEALTH OF)4.8%
- 2AUSTRALIA (COMMONWEALTH OF)4.8%
- 3AUSTRALIA (COMMONWEALTH OF)4.7%
- 4AUSTRALIA (COMMONWEALTH OF)4.6%
- 5AUSTRALIA (COMMONWEALTH OF)4.6%
- 6AUSTRALIA (COMMONWEALTH OF)4.5%
- 7AUSTRALIA (COMMONWEALTH OF)4.4%
- 8AUSTRALIA (COMMONWEALTH OF)4.3%
- 9AUSTRALIA (COMMONWEALTH OF)4.3%
- 10AUSTRALIA (COMMONWEALTH OF)4.3%
These 10 are 45.3% of the fund.
Where the money is invested
Countries
- Australia98.2%
- Other1.8%
How to invest in XCS2 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 GBP when you buy.
Step 3
Search XCS2 and buy
Find the fund by its ticker, XCS2, on the London Stock Exchange ETF segment, and place your order.
Why invest in XCS2 from India
What XCS2 holds
The FTSE Australian Government Bond Index is designed to track the returns of a specific market: Australian Dollar-denominated sovereign bonds. It includes securities that cover the full spectrum of the yield curve, provided they have at least one year remaining until their maturity date.
Outside US estate tax
XCS2 is domiciled in Luxembourg, 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 XCS2's UCITS structure matters for Indian investors
XCS2 is domiciled in Luxembourg, 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.
Frequently asked questions
Can I buy XCS2 from India?
Yes. Indian residents can buy Xtrackers II Australia Government Bond UCITS ETF (XCS2) 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 XCS2 invest in?
Its largest holdings are AUSTRALIA (COMMONWEALTH OF) (4.8%), AUSTRALIA (COMMONWEALTH OF) (4.8%) and AUSTRALIA (COMMONWEALTH OF) (4.7%). The fund is domiciled in Luxembourg.
What is the expense ratio of XCS2?
Xtrackers II Australia Government Bond UCITS ETF has an expense ratio of 0.25% a year, taken from the fund's assets rather than billed to you. The fund manages about £36.9M.
Is XCS2 a UCITS ETF, and why does that matter for Indian investors?
Yes. Xtrackers II Australia Government Bond UCITS ETF is a UCITS fund domiciled in Luxembourg. Because it is domiciled outside the US, it is not a US-situs asset, so US estate tax does not apply to it.
What tax do I pay in India when I sell XCS2?
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.