ADX to list first ETFs in March

14/01/2009 - Dubai Investment News
ADX to list first ETFs in March

The Abu Dhabi Securities Exchange (ADX) will lists its first exchange traded fund (ETF) in March, offering investors an asset-backed product linked to top regional companies.

ADX chief executive Tom Healy told the Khaleej Times that the equivalent ETFs are also being planned in Tokyo, Taiwan and Pakistan, responding to demand for the product among Middle Eastern investors.

ETFs are a new trading mechanism for the region and hold bonds and stocks at almost the same price of the net value of the underlying assets during the trading day.

Mr Healy added that as such, UAE investors will be able benefit from expanded choices and opportunities on the ADX.

The first ETF will be launched by a UAE issuer in March, the chief executive insisted, although no further details were given.

In other recent developments, Index Universe has noted that the Borse Dubai also intends to launch ETFs this year as they become more popular across the region.