Bringing you live news and features since 2006 

EasyETF launches Middle East index trackers on Euronext Paris

RELATED TOPICS​

BNP Paribas Asset Management has launches the world’s first United Arab Emirates exchange-traded fund under the EasyETF brand on Euronext Paris, and has also expanded its range of ETFs wit

BNP Paribas Asset Management has launches the world’s first United Arab Emirates exchange-traded fund under the EasyETF brand on Euronext Paris, and has also expanded its range of ETFs with Kuwait and waste management index trackers.

Following the introduction of 18 EasyETF trackers in less than six months, BNP Paribas Asset Management says the new launches emphasise its focus on the Middle East and socially responsible investment as key investment themes for the future.

EasyETF DJ United Arab Emirates and EasyETF DJ Kuwait Titans 30 offer investors easy access to two leading Middle East economies and are based on newly-created Dow Jones indices. ‘The Middle East is one of the world’s most promising growth regions,’ says Danièle Tohmé-Adet, co-manager of the EasyETF platform at BNP Paribas Asset Management.

‘Though quite a heterogeneous region, the Middle East has been relatively spared by the global economic crisis up to now. In terms of economic development, the IMF puts its growth rate at nearly 6 per cent per year since 2003.’

While the United Arab Emirates is one of the world’s largest oil producers, the diversification of its sources of income has prevented it from being impacted excessively by the ups and downs of the oil price, Tohmé-Adet says.

Its GDP growth was 7.8 per cent in 2007 and is forecast to average 7 per cent per year over the next five years. The EasyETF DJ United Arab Emirates replicates the performance of the Dow Jones UAE Select TR index, which covers up to 20 of the largest stocks listed on the Dubai Financial Market, Abu Dhabi Securities Market and Dubai International Financial Exchange.

Kuwait is the fourth richest country in the world in terms of GDP per capita, with more than 50 per cent of its economic output derived from the oil industry. Economists forecast growth of 6 per cent per year over the next five years, Tohmé-Adet says. The EasyETF DJ Kuwait Titans 30 replicates the Dow Jones Kuwait Titans 30 TR index, consisting of the largest and most liquid stocks listed on the Kuwait Stock Exchange.

‘Some of the world’s most rapidly emerging financial markets are located in the Middle East,’ says Dow Jones Indexes president Michael A. Petronella. ‘By introducing the Dow Jones Kuwait Titans 30 and Dow Jones UAE Select indexes we are adding to our recently established series of indexes for the Gulf Co-operation Council region.

‘Using a transparent, advanced, and rules based methodology, the new country indexes offer market participants accurate tools to measure the performance of the biggest and most liquid blue-chip stocks in Kuwait and the UAE.’

Says Tohmé-Adet: ‘BNP Paribas was the first European ETF provider to offer access to the Middle East region by launching the EasyETF Dow Jones CASE Egypt Titans 20. We are complementing our tool box for this region through ETFs based on the Dow Jones Kuwait Titans 30 and Dow Jones UAE Select indexes. We selected these emerging markets because of investors’ interest in participating in the performance of energy-oriented countries.’

The Dow Jones Kuwait Titans 30 Index is weighted by free float-adjusted market capitalisation, with the weights of individual stocks capped at 10 per cent of the index’s total capitalisation. The index universe comprises all stocks traded on the Kuwait Stock Exchange, excluding any securities with more than 10 non-trading days over the past quarter.

The index is calculated in US dollars and Kuwaiti dinars and reviewed annually in March. As of November 3, its top three components were National Bank of Kuwait, Kuwait Finance House and Mobile Telecommunications Co.

The Dow Jones UAE Select Index is also weighted by free float-adjusted market capitalisation, with individual stocks capped at 15 per cent of the total. The index universe consists of all stocks in the Dow Jones GCC Index that are traded in the UAE with a minimum three-month average trading volume of USD5m and a minimum of 5 per cent foreign free float.

The index is calculated in US dollars and UAE dirhams and reviewed quarterly in March, June, September and December. As of November 3, its top three components were Emaar Properties, First Gulf Bank and DP World.

EasyETF BNP Paribas Global Waste, which is also listed on Euronext Paris, replicates the S-Box BNP Paribas Global Waste Management TR index, which comprises companies that place the greatest value on waste management and treatment.

‘Waste treatment is a major challenge that needs to be met in the short term and offers long-term economic prospects to companies operating in this sector,’ says Guillaume Dolisi, head of index structuring at BNP Paribas’s corporate and investment banking business.

He argues that with the IMF estimating that the world’s population will reach 9 billion by 2050 and waste production set to grow at a similar pace, waste management is poised to become an environmental issue of major importance.

The EasyETF funds are available in US dollar- and euro-denominated versions. The annual management fee is 0.65 per cent for the EasyETF DJ United Arab Emirates and EasyETF DJ Kuwait Titans 30 funds and 0.60 per cent for EasyETF BNP Paribas Global Waste.

The EasyETF range, which includes funds managed by Axa Investment Managers as well as BNP Paribas, now comprises 53 ETFs, of which 47 are listed on Euronext Paris, 10 on Deutsche Börse, seven on Borsa Italiana and two on the Swiss Stock Exchange, and had a total of EUR3.96bn in assets at the end of September.

Latest News

BlackRock writes that May marked the highest inflow month of the year for both rates and high yield (HY) ETPs,..
SIX reported a combined 12.3 per cent trading turnover increase in CHF for its two exchanges in Switzerland and Spain..
EFAMA’s March figures reveal that UCITS and AIFs recorded net inflows of EUR24 billion, up from EUR21 billion in February...
VanEck has announced that the VanEck Semiconductor UCITS ETF has reached over USD2 billion in assets under management (AUM) after..

Related Articles

Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by