What should investors do?
For those seeking global diversification, the direct route now looks more practical than buying these ETFs at a premium. Under the RBI’s Liberalized Remittance Scheme (LRS), individuals can transfer up to $250,000 per financial year and invest directly in ETFs listed on US exchanges. Some broker dealers and platforms offer this option, although it involves currency conversion and brokerage costs, and foreign assets must be reported on Schedule FA of the tax return.