In first, Saudi Arabia to begin trading China-focused ETF: What we know
The ETF, which will begin trading on the Saudi Stock Exchange, has raised more than $1.2 billion.
On Wednesday, Saudi Arabia’s first exchange-traded funds that track Hong Kong-listed shares, comprising mainly Chinese companies, will start trading. The ETF is expected to be the Middle East’s largest ever.
An ETF is a type of investment fund that also functions as a traded product on a stock exchange. ETFs allow investors to own financial assets such as shares, bonds, currencies, derivatives, futures and even commodities such as gold. ETFs that track certain shares allow investors who might not easily be able to invest in those companies do so, even if they are based overseas.
The ETF, which will begin trading on the Tadawul Saudi stock exchange Wednesday, has raised more than $1.2 billion from Middle Eastern investors, issuer Albilad Capital and its partner, Hong Kong's CSOP Asset Management, said in a statement.
According to London Stock Exchange data, the new listing is set to be bigger than the largest Islamic ETF — Al Rayan Qatar ETF — listed on the Qatar Stock Exchange.
