Abu Dhabi-based investment management firm, Chimera Capital, will be listing a new exchange-traded fund (ETF) on the Abu Dhabi Securities Exchange (ADX). The ETF will track the performance of Turkey's listed, Sharia-compliant securities, enabling investors to capitalise on Turkey's economy.
Chimera's latest fund will track the performance of the S&P Turkey Sharia Liquid 35/20 Capped Index. The index, provided by S&P Dow Jones Indices, tracks the performance of the most liquid Sharia-complaint stocks listed on the Borsa Istanbul.
The latest ETF launch comes on the back of Chimera’s recent listing of two US Shariah-compliant ETFs in July and two other ADX-listed ETF launches completed earlier this year – there are now nine ETFs listed on UAE stock markets, giving investors access to five different stock exchanges.
Why it matters
Bourses in the GCC region are hastening efforts to diversify their product offerings to attract more foreign direct investment and boost trading activity. ETFs themselves are popular with retail investors because of their low fees and easy access to a range of diverse assets. As such, offering shariah-compliant options show the desire to attract those investors who do not want to compromise on their religious beliefs.
