A. SREENIVASA REDDY (ABU DHABI)

GQG Partners, which is cross-listing its US-domiciled US Equity ETF on the Abu Dhabi Securities Exchange (ADX), said the Initial Offering Period (IOP) gives investors an opportunity to educate themselves about the fund, its investment strategy, and the mechanics of trading a cross-listed security.

The IOP for GQG US Equity ETF (GQGU) began on November 9 and will run until November 13. The ETF, which provides exposure to large and mega-cap US equities, is scheduled to begin trading on ADX on November 19.

Speaking to Aletihad, Xavier Sement, Managing Director, Head of International at GQG Partners, said the IOP gives potential investors time to research the fund by studying its prospectus and other relevant materials, consult their financial advisers and make informed investment decisions.

“We are grateful to ADX for allowing us to conduct an Initial Offer Period as this gives investors the opportunity to educate themselves about the Fund, the strategy and the mechanics of trading a cross-listed security,” Sement said.

“We believe that the cross-listing mechanism agreed by ADX and NYSE is a best-in-class structure and is indicative of the strengthening connectivity between ADX and other global financial markets,” he added.

GQGU is an actively managed ETF that seeks long-term capital appreciation by investing in US companies selected on the basis of financial strength, earnings growth potential, valuations and management quality.

Unlike index-tracking ETFs, GQGU does not replicate the composition of an index. It uses the S&P 500 Index as its benchmark, with its portfolio managers independently selecting stocks and determining their weightings.

According to the fund's factsheet dated September 30, 2026, the ETF held 37 stocks, with the top 10 accounting for 57.78% of its portfolio.

Nvidia was the largest holding, accounting for 9.61% of the portfolio, followed by Microsoft at 8.26%, Apple at 7.59%, Alphabet at 7.04% and Amazon at 6.63%.

The other major holdings were Micron Technology at 4.52%, Dell Technologies at 4.33%, Lam Research at 3.64%, Philip Morris International at 3.19% and Meta Platforms at 2.97%.

The ETF had a substantial exposure to the technology sector, which accounted for 59.14% of its portfolio, compared with 39.71% for the S&P 500 Index.

Communication services accounted for 10.02% and industrials for 7.67%.

The fund is managed by an investment team led by GQG Partners' Chief Investment Officer Rajiv Jain, alongside portfolio managers Brian Kersmanc and Sudarshan Murthy.

GQGU has a net operating expense ratio of 0.49% annually, comprising a management fee of 0.46% and other operating expenses. The expenses are reflected in the fund's daily net asset value (NAV), rather than being charged separately to investors.

GQG Partners managed approximately $149.2 billion in client assets as of September 30, 2026, according to its FAQ. The firm, founded in 2016, has its international headquarters in Abu Dhabi Global Market.

Responding to a question about whether the ADX listing involves creating a separate ETF with its own portfolio of US stocks, Sement clarified that the fund would remain the same entity as the one already listed on NYSE Arca.

“There is no separate ETF and no separate portfolio. Units traded on ADX represent interests in the same Fund, GQGU, that is listed on NYSE Arca. Both listings relate to the same underlying portfolio and Fund assets,” Sement said.

He said the cross-listing would not change the fund's domicile, governing law, regulatory status, investment objective or portfolio.

“In connection with the IOP, the Market Maker purchases Fund Units in the United States,” he added.

However, investors buying units on ADX will not be able to directly transfer them to the US exchange or sell them on NYSE Arca, Sement clarified.

Investors will have to trade their ADX-listed units through licensed brokers or ADX trading members, while market makers will facilitate cross-border access to ETF units to support local liquidity.

Oceane Global for Market Making will act as the primary market maker for the ADX listing.

The ETF's subscription price during the IOP will be floating, reflecting changes in the price of the existing US-listed fund, rather than being fixed at the beginning of the offering.

According to the supplementary prospectus dated November 9, the indicative price range is based on the ETF's NYSE closing price immediately before the IOP began, allowing for an illustrative movement of approximately 5% above or below that reference price.

However, this indicative range is neither a ceiling nor a floor, and the final issue price may fall outside it.

The final price will be determined using the fund's official NYSE closing price on the reference date, expected to be November 17.

The final issue price is expected to be communicated to investors on November 18, ahead of the scheduled ADX listing on November 19.

Sement clarified that all investors subscribing during the IOP would receive units at the same final issue price, regardless of the day on which they subscribed.

“All investors subscribing during the IOP will be allocated Units at the same Final Issue Price, regardless of which day they subscribe. There is no separate price locked in on each subscription day,” he said.

As the final price will only be known after the subscription period, investors will commit a monetary amount during the IOP rather than a fixed number of ETF units.

Their allotment will be calculated using the final issue price, with any residual amount refunded.