Exchange Traded Funds (ETFs)
In line with the DFM strategy to provide investors with innovative and diversified investment products, the DFM provides a favourable regulatory framework for the listing and trading of Exchange-Traded Funds (ETFs), which are open-ended investment funds listed and traded on a stock exchange. An ETF combines the features of an index fund and a share. The liquidity of an ETF reflects the liquidity of the underlying basket of shares which the ETF is created upon. ETFs allow investors to take exposures in the underlying assets of an ETF in a cost-effective manner without having direct exposures to the underlying assets.
On Wednesday 29th June 2016, Afkar Capital listed the first foreign exchange-traded fund in the UAE on the Dubai Financial Market, under the symbol “UAETF” (Bloomberg: UAETF UH Equity) which has been designed to replicate the S&P UAE BMI Liquid 20/35 Capped Index (Bloomberg: SPUAECAN). The index includes the largest stocks by capitalization in the United Arab Emirates, providing exposure to the UAE economy.