Any timeline on when UCITS ETFs be available on Vested?
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Is there an update for this?
Thanks for the question!
UCITS ETFs are not available on Vested yet, but this is something the team is actively exploring as part of expanding our global investment offerings.
For now, you can access 50+ global funds on Vested, and we’re working towards significantly expanding the product universe going forward.
UCITS ETFs are expected to be available on Vested in the next 1–2 quarters, and we’ll definitely share an update with the community as soon as there’s more to announce. Stay tuned!
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Ok thanks for the update. Requesting to expedite this. As the portfolios become bigger and above $60,000, it adds the risk of estate tax if someone passes away. Ireland domiciled UCITs ETFs are great and avoids the risk of Estate Tax.
Global funds are all high expense ratio.
Currently UCITS ETFs are being offered on Interactive Brokers India platform, I hope they become available on Vested soon.
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Yes, we are actively working on this to make it available to all Vested Users. We will keep the community posted. Thank you.
Regards,
Samveg
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Can you please help to share whats stopping vested from offering UCITS on its platform. The timeline given here of 1-2 quarters is clearly too long. Serious Indian investors aren’t going to wait for that long and silently move to IBKR. I hope you take this more seriously and urgently introduce Ireland domiciled UCITS on vested
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As a client of Vested, I think UCITS funds are available. UCITS ETFs aren’t available.
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Any expected date? There is no point in buying US domiciled assets if Estate Taxes are at stake. Global funds have very high expense ratio.
Dear Nilesh,
UCIT funds currently available on Vested are mostly domiciled in Luxembourg and have high expense ratio. Defeats the whole purpose of buying an UCIT to prevent estate tax exposure.
I would personally not recommend these funds to invest.
Not sure why UCIT ETFs can’t be introduced on this platform.
UCITS funds as well as UCITS ETFs are domiciled in Ireland or Luxembourg and aren’t traded in US exchanges. Besides, IBKR charges commission beginning at 0.05% (for LSE in Dollars) in comparison to 0.25% charged by Vested, but for investments and SIPs below $680, Vested works out to be cheaper. For this amount IBKR would charge $1.70 minimum (commission excluding 3rd party fees) as the UCITS ETFs would be traded on the London Stock Exchange in Dollars. For the same amount, Vested also charges $1.70 at 0.25%. However, for any amount below this Vested would be cheaper. I’ve not included Exchange and clearance fees charged by IBKR. Also, I’m comparing UCITS funds on Vested with UCITS ETFs on IBKR which isn’t an exact comparison. For investors who generally invest below 680USD at any single point, Vested is cheaper. Once Vested begins UCITS ETFs, we’ll be able to compare properly.
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Even if Vested is cheaper still it doesn’t make sense to risk your capital against US Estate Taxes.
I am using IBKR and happy to pay $1.70 fees for my investments but will no longer use Vested or any similar platforms until UCITS ETFs are launched. Till now I have not paid more than $1.70 including all charges by IBKR.
UCITS funds (Global Funds) through Vested are domiciled in Luxembourg or Ireland and are out of the purview of US Estate Taxes. Consequently, there’s no risk to capital. I’m afraid you’re mistaken.
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UCITS Funds are exempted from US Estate Taxes but they have high expense ratio. US ETFs are have lower expense ratio but estate taxes are applicable. UCITS ETFs are not available on Vested yet. IBKR is offering UCITS ETFs where I do my investments too.
I personally know of a few individuals who have moved their entire VESTED portfolio to IBKR exactly due to this gap in offering. I just hope the UCIT ETFs get introduced on priority.
My current investments in Vested are in US Exchange based ETFs. If Vested does introduce UCITS ETFs, would I be liable for a capital gains tax for transfer from US based ETFs to Ireland or any europe country based UCITS ETFs? I would rather transfer the ETFs to IBKR directly if I’m being subject to capital Gains Tax because the brokerage is much lower and also the shares would be in my name in IBKR rather than a custodian which is what the case in Vested Finance is.
Just a thought - Why can’t you diversify across different platforms IBKR + Vested(DriveWealth) + ViewTrade (NSEIX/IndiaINXGlobal). Because each platform has its own pros/cons.
In ViewTrade website they officially mentioned, US Estate Tax is not applicable for indian residents (not sure in reality how they will handle it, time will decide this).
If I’m not mistaken, US stocks and ETFs which are traded in US exchanges are always in the ‘street name’ and not in the inverstor’s name (like India). It would be the case regardless of whether you invest through IBKR or any other platform. Secondly, if your investments are in US ETFs, you won’t be subjected to Indian capital Gains Taxes as long as you don’t sell the ETFs. If Vested introduces UCITS ETFs too, you can’t just convert US ETFs into UCITS ETFs. You’ll have to sell the US ETFs, if you wish, and then buy UCITS ETFs separately and selling those US ETFs would invite CGT in India, if you’re an Indian resident tax payer. Introduction of UCITS ETFs by Vested wouldn’t compel anyone to sell off US ETFs unless one wishes to do so. Besides, unless one’s US holdings exceed 60k USD, Estate Taxes wouldn’t apply. Even estate taxes apply only on death of the investor.
It would be really beneficial for Indian investors if you applied UCITS as soon as possible. Please don’t just tell us that you are working towards it — give us a date or at least an approximate timeline.
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