HSBC Global Asset Management (HSBC GAM) has launched an exchange-traded fund (ETF) aimed at meeting demand for Saudi Arabian securities following MSCI’s decision to include the kingdom in its emerging markets index.
Listed on the London Stock Exchange, the ETF is designed to replicate the performance of the MSCI Saudi Arabia 20/35 Capped Index, which tracks Saudi Arabia shares included in the MSCI Emerging Markets Index.
With further listings planned across other key markets in Europe, the fund aims to “provide cost-efficient access” to around 85% Saudi Arabia’s free float adjusted market capitalisation.
Dividends from the HSBC MSCI Saudi Arabia 20/35 Capped Ucits ETF will be paid out to investors on a quarterly basis, according to the company.
“Saudi Arabia is a market that is increasingly relevant to global investors as it makes further progress in its evolution to becoming an international capital markets hub,” said Olga De Tapia, head of ETF sales in Europe, the Middle East and Africa.
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