London Stock Exchange ETF segment · UCITS ETF
Invest in XZEM ETF from India
Indian and foreign residents can buy Xtrackers MSCI Emerging Markets ESG UCITS ETF (XZEM) units directly through Paasa.
By Paasa · Updated
XZEM at a glance
- Price
- $68.04+$0.14 (0.21%)
- Expense ratio
- 0.25%
- Day range
- $67.94 – $68.39
- Assets
- $1.6B
- Domicile
- Ireland
- Holdings
- —
- Launched
- 2019
- Dividends
- —
- 1 month
- -0.67%
- 6 months
- +10.63%
- YTD
- +8.12%
- 1 year
- +9.57%
- 5 years
- +24.51%
Price change, excluding dividends.
Top 10 holdings
- 1TAIWAN SEMICONDUCTOR MANUFAC20.6%
- 2SK HYNIX INC11.6%
- 3TENCENT HOLDINGS LTD6.2%
- 4ALIBABA GROUP HOLDING LTD4.2%
- 5DELTA ELECTRONICS INC2.1%
- 6CHINA CONSTRUCTION BANK H1.9%
- 7HDFC BANK LIMITED1.5%
- 8SK SQUARE CO LTD1.3%
- 9SAMSUNG ELECTRO MECHANICS CO1.1%
- 10UNITED MICROELECTRONICS CORP1.0%
These 10 are 51.6% of the fund.
Where the money is invested
Sectors
- Technology39.0%
- Financial Services23.7%
- Communication Services10.8%
- Consumer Cyclical10.5%
- Industrials4.9%
- Healthcare3.7%
Countries
- Taiwan (Province of China)29.3%
- China23.7%
- Korea (the Republic of)20.7%
- India5.7%
- South Africa3.5%
- Brazil2.4%
How to invest in XZEM 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 XZEM and buy
Find the fund by its ticker, XZEM, on the London Stock Exchange ETF segment, and place your order.
Why invest in XZEM from India
What XZEM holds
The fund is passively managed. The aim is for your investment to track the performance, before fees and expenses, of the MSCI EM Low Carbon SRI Leaders Index (index).
Outside US estate tax
XZEM is domiciled in Ireland, not the US, so it is not a US-situs asset and US estate tax does not apply to it.
Hold a dollar asset
XZEM 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.
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 XZEM's UCITS structure matters for Indian investors
XZEM 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 XZEM from India?
Yes. Indian residents can buy Xtrackers MSCI Emerging Markets ESG UCITS ETF (XZEM) through Paasa. It is listed on the London Stock Exchange ETF segment 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 XZEM invest in?
Its largest holdings are TAIWAN SEMICONDUCTOR MANUFAC (20.6%), SK HYNIX INC (11.6%) and TENCENT HOLDINGS LTD (6.2%). Technology is its largest sector at 39.0%. The fund is domiciled in Ireland.
What is the expense ratio of XZEM?
Xtrackers MSCI Emerging Markets ESG 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 $1.6B.
Is XZEM a UCITS ETF, and why does that matter for Indian investors?
Yes. Xtrackers MSCI Emerging Markets ESG 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.
What tax do I pay in India when I sell XZEM?
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 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.