The new fund will follow the performance of the ‘Dow Jones UAE 25 Total Return Index’ and provide investors with exposure to 25 blue-chip companies from across the UAE.
Meanwhile, listing the ETF at ADX, will offer investors the opportunity to buy and sell as the case is with any other share.
The constituents of the new fund will change over time in line with the Dow Jones UAE 25 Total Return Index but initially will have exposure, through the swap.
Michael Tomalin, the group chief executive of NBAD, said: “I am proud of the fact that NBAD is the first bank to launch an ETF in the region. We are delighted to have launched NBAD OneShare Dow Jones UAE 25 ETF with ADX and Dow Jones. Together, we will have significant firepower to take advantage of the increasing demand for ETFs, which are the fastest growing product area in the investment market.”
Michael Petronella, president of Dow Jones Indexes, said: “The Dow Jones UAE 25 Index is a strictly rules-based index that measures the performance of 25 of the largest, most frequently traded and liquid equity securities trading in the UAE. With these index qualities underlying the ETF by NBAD, local and international investors are offered a transparent and liquid vehicle that provides passive exposure to this attractive market.”
Alan Durrant, chief investment officer of NBAD’s asset management group, said that the NBAD OneShare Dow Jones UAE 25 ETF will give investors the opportunity to gain real time, cost-effective exposure to a broad basket of UAE shares. It has the diversification benefits of a mutual fund and the instant liquidity of a share.
Tom Healy, ADX’s chief executive, said that exchange is proud to have developed the infrastructure for this new investment product, which would position the exchange in the region and support the development of the Abu Dhabi capital market, in line with the Economic Vision 2030, and that ADX will be promoting the listing of other ETFs, from the UAE and abroad.
