Securities

Exchange Traded Funds

What is an Exchange Traded Fund?

An exchange-traded fund (ETF) is a mutual fund that is listed and traded on a stock exchange. Most ETFs are created with the aim of matching as closely as possible the performance of market indices and therefore allow exposure to the broad market through a single fund. Since they are listed on a stock exchange, investors buy and sell ETFs using a stock broker or market maker. You do not need to deal with the Fund Manager in the way that you would typically need to when investing in a traditional mutual fund.

Why MSCI Tadawul 30?

The MSCI Tadawul 30 Index is jointly launched by MSCI and the Saudi Stock Exchange Co. (Tadawul).

The index targets the top 30 stocks listed on the Saudi main equity market that represents the performance of large, mid and small-cap stocks. The index screened for liquidity and international investability where it’s designed to be able to serve as the basis for financial products including derivatives and ETPs.

 

Index Methodology

The MSCI Tadawul 30 Index targets top 30 securities of the MSCI Saudi Arabia IMI Index based on free float market cap allowing number of constituents to range between 25 and 35. The maximum security weight is capped at 15%.

 

Fund Objectives

The Fund is an open ended investment fund and its objectives is to replicate the performance of MSCI Tadawul 30 Index before deducting the fees and expenses, while minimizing, as far as possible, the tracking error between the fund’s performance and that of the Index to 1.5% maximum.

 

Fund Features 

Fund name

HSBC MSCI Tadawul 30 Saudi ETF

Fund type

Exchange traded fund

Risk level

High risk

Investment policy

Passive Management

Inception date

20/11/2011

Fund currency

SAR

Benchmark

MSCI Tadawul 30

Index provider

MSCI

Inception price

SAR 20

Annual Management fees

0.75%

 

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