The Vanguard Growth ETF (VUG) tracks the CRSP US Large Cap Growth Index, focusing on companies with strong earnings growth and high price-to-earnings ratios.
However, for long-term Indian investors, VUG carries a critical structural risk: the US Estate Tax. If you hold US-domiciled assets like VUG and your holdings exceed $60,000, your estate faces US estate tax at progressive rates reaching 40% upon your death. On a $500,000 holding that works out to roughly 29% of the portfolio.
This blog gives you all the information you need about the top UCITS alternatives. While there is no direct UCITS ETF that tracks the exact CRSP index, the alternatives below offer highly correlated growth without the risk of the US Estate Tax.
Table of contents
- Why Indians are looking for UCITS alternatives to VUG
- Popular UCITS alternatives for VUG
- Invest in UCITS ETFs with Paasa
Why Indians are looking for UCITS alternatives to VUG
Indian investors are shifting to UCITS alternatives because they solve the tax risks and inefficiencies of US ETFs like VUG while providing closely comparable exposure.
- Estate Tax Protection: UCITS funds are typically domiciled in Ireland. They are not considered "US-situs" assets, meaning they are 100% exempt from US Estate Tax.
- Tax Deferral (Accumulation): Unlike VUG, which forces taxable cash dividends on you, many UCITS funds offer "Accumulating" classes that reinvest dividends automatically. This defers your Indian tax liability until you sell the fund, and converts what would have been slab-rate dividend income into capital gains.
To learn more about UCITS ETFs and why Indian investors are choosing them, read our guide on UCITS ETFs.
Popular UCITS alternatives for VUG
Here are the top three UCITS funds that serve as the best proxies for US Growth.
1. Invesco EQQQ Nasdaq-100 UCITS ETF
While VUG tracks a broader "Large Cap Growth" index, the Nasdaq-100 is the closest widely available proxy in the UCITS market. The two have historically moved closely together, as both are driven by the same mega-cap technology names.
Note that the Nasdaq-100 covers only Nasdaq-listed non-financial companies, so it excludes some NYSE-listed growth names that VUG holds.
- Ticker: EQQQ (LSE)
- Total Expense Ratio (TER): 0.30%
- Structure: Distributing (Pays dividends in cash)
- Top Holdings: NVIDIA, Apple, Microsoft, Amazon, Broadcom.
2. iShares S&P 500 Information Technology Sector UCITS ETF
For investors who want a sharper, more concentrated growth bet than VUG, this sector ETF is a powerful alternative. It tracks the S&P 500 Capped 35/20 Information Technology index, which caps the largest holding at 35% and every other holding at 20%, and holds around 73 stocks.
Note: this is a much narrower fund than VUG, not a like-for-like swap. Under GICS classification, Amazon, Alphabet, Meta and Tesla sit outside the Information Technology sector, so several of VUG's largest positions are absent here. It is an Accumulating (Acc) fund, making it tax-efficient for Indians, but treat it as a sector bet rather than a growth substitute.
- Ticker: IUIT (LSE)
- Total Expense Ratio (TER): 0.15%
- Structure: Accumulating (Reinvests dividends)
- Top Holdings: Apple, Microsoft, NVIDIA, Broadcom, Oracle.
3. Xtrackers MSCI USA UCITS ETF
For investors who prefer a broader approach closer to VUG's Large Cap mandate but without the tech concentration of the Nasdaq, this fund covers large and mid cap US equities, around 85% of the market.
Its market-cap weighting naturally tilts it heavily towards the growth giants that dominate VUG. At 0.03% it is by some distance the cheapest of the three, and it uses full physical replication with an Accumulating structure.
- Ticker: XD9U (LSE, USD line)
- Total Expense Ratio (TER): 0.03%
- Structure: Accumulating (Reinvests dividends)
- Fund size: ~€11.6 billion (as of August 2026)
- Top Holdings: NVIDIA, Apple, Microsoft, Amazon, Alphabet.
Invest in UCITS ETFs with Paasa
Paasa is a global investing platform designed for Indian investors. We provide direct access to over 10 global exchanges, including the United States, United Kingdom, Switzerland, Hong Kong, Germany, France, Canada, Netherlands, Japan, and Singapore.
This means you are not restricted to just US ETFs like the VUG; you can also buy tax-efficient UCITS equivalents using Paasa.
The Compliance Advantage
Paasa makes global investing easy and also removes the compliance friction with a specialized layer built specifically for Indian residents:
- Schedule FA Reporting: Exact reports you need for your Indian tax returns, eliminating the need for manual calculations.
- Tax Filing & Advice: Access to expert tax advice and seamless filing support.
- FEMA & LRS Integration: Guidance on FEMA regulations and LRS limits to ensure compliance.
Paasa also provides access to managed strategies, along with remittance, FEMA and tax advisory.
