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London Stock Exchange ETF segment · UCITS ETF

Invest in XUFB ETF from India

Indian and foreign residents can buy Xtrackers MSCI USA Banks UCITS ETF (XUFB) units directly through Paasa.

By Paasa · Updated

XUFB at a glance

Price
£28.19-£0.34 (1.20%)
Expense ratio
0.12%
Day range
£28.15 – £28.47
Assets
£24.5M
Domicile
Ireland
Holdings
—
Launched
2018
Dividends
Distributing
1 month
-4.69%
6 months
+14.26%
YTD
+1.98%
1 year
+9.34%
5 years
+47.78%

Price change, excluding dividends.

Live chart and fund data

Top 10 holdings

  1. 1JPMORGAN CHASE + CO31.9%
  2. 2BANK OF AMERICA CORP17.0%
  3. 3WELLS FARGO + CO13.6%
  4. 4CITIGROUP INC12.5%
  5. 5US BANCORP5.1%
  6. 6PNC FINANCIAL SERVICES GROUP5.0%
  7. 7TRUIST FINANCIAL CORP3.2%
  8. 8FIFTH THIRD BANCORP2.6%
  9. 9M + T BANK CORP1.8%
  10. 10HUNTINGTON BANCSHARES INC1.7%

These 10 are 94.4% of the fund.

Where the money is invested

Countries

  • United States100.0%
  • Other0.0%

How to invest in XUFB from India

  1. 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.

  2. 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.

  3. Step 3

    Search XUFB and buy

    Find the fund by its ticker, XUFB, on the London Stock Exchange ETF segment, and place your order.

Why invest in XUFB from India

What XUFB holds

The MSCI USA Banks 20/35 Capped Index is designed to mirror the performance of a specific segment of the U.S. market. It comprises substantial and medium-sized U.S.-listed corporations exclusively within the banking sector, as defined by the Global Industry Classification Standard (GICS) framework.

Outside US estate tax

XUFB 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 XUFB's UCITS structure matters for Indian investors

XUFB 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.

See UCITS options

Frequently asked questions

Can I buy XUFB from India?

Yes. Indian residents can buy Xtrackers MSCI USA Banks UCITS ETF (XUFB) 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 XUFB invest in?

Its largest holdings are JPMORGAN CHASE + CO (31.9%), BANK OF AMERICA CORP (17.0%) and WELLS FARGO + CO (13.6%). It is a distributing fund domiciled in Ireland.

What is the expense ratio of XUFB?

Xtrackers MSCI USA Banks UCITS ETF has an expense ratio of 0.12% a year, taken from the fund's assets rather than billed to you. The fund manages about £24.5M.

Is XUFB a UCITS ETF, and why does that matter for Indian investors?

Yes. Xtrackers MSCI USA Banks 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 XUFB dividends taxed in India?

Xtrackers MSCI USA Banks 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 XUFB?

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 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.

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