Should Indians buy US-listed ETFs or Ireland-domiciled UCITS ETFs?

Published 19 September 2026

Bharat from Surat

US ETFs are often extremely cheap, while Ireland-domiciled UCITS ETFs can cost a little more. For an Indian investor, when does the structure matter more than the expense ratio?

Sachin Kabra Co-founder Foliyo (SEBI RIA No: INA000023454), ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

US-listed ETFs can be very attractive purely from a product-cost point of view.

Some S&P 500 ETFs can cost around 0.03% per year, while a Nasdaq ETF such as QQQ can cost around 0.18%.

But an Indian investor also has to consider dividend withholding tax and US estate tax.

US-listed stocks and ETFs are generally treated as US-situs assets, and for a non-US resident the estate-tax threshold discussed in the video is around $60,000.

Ireland-domiciled UCITS ETFs can give exposure to the same markets while using a different structure, though their expense ratios may be slightly higher.

The decision should therefore consider not just expense ratio, but also withholding tax, estate tax, brokerage, forex cost, tax reporting and portfolio size.

If your global exposure is small, a US-listed ETF can be a simple low-cost route. As the exposure becomes meaningful, structure starts to matter much more.

“The question is not only about the expense ratio.”

“If your exposure is meaningful, and especially if it is above roughly $60,000, Ireland-domiciled UCITS ETFs may deserve serious consideration.”

This is not personalized investment advice. Your goals, tax situation, portfolio size and risk tolerance may be different, so assess your own situation and discuss it with your financial and tax advisor.

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