A. SREENIVASA REDDY (ABU DHABI)
A new exchange traded fund (ETF) tracking the top companies in the German stock market is being launched at the Abu Dhabi Securities Market (ADX).
Lunate Capital Limited, the investment manager of the fund, announced that the new ETF will be listed at ADX on September 26.
The fund named as Chimera S&P Germany UCITS ETF will track the performance of the S&P Germany BMI Liquid 35/20 Capped Index, which includes the top 30 most liquid companies listed in Germany, currently featuring renowned companies such as Siemens and Mercedes-Benz.
This ETF is tailored for UAE retail investors, offering exposure to Germany's diversified and robust economy, a statement said.
Sherif Salem, Partner & Head of Public Markets at Lunate, said: “With the launch of the new ETF, UAE investors now have access to one of Europe's largest and strongest economies.This ETF strategically complements our existing suite of 16 ETFs listed on UAE stock markets, which already provide access to key markets in some of the biggest and most vibrant economies."
Speaking to Aletihad, Vijay Valecha, Chief Investment Officer at Century Financial, said: “The ETF leverages ADX’s innovative suite of investment products and intraday liquidity, offering investors practical strategies to manage risk while accessing foreign equities.”
Investors are expected to benefit from the ETF's focus on liquidity and growth, offering both security and potential long-term returns.
“The listing aligns with Abu Dhabi's vision to cement its status as a financial hub, providing investors with more avenues to capitalise on global growth opportunities,” Valecha said.
Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, welcomed the listing of the new ETF and said: "This reinforces ADX’s ongoing efforts in providing unique investment choices for investors to capitalise on opportunities in some of the world’s high-performing and fast-growing economies.”