Tools
ETF (Exchange Traded Fund) — a financial instrument that combines various assets, such as stocks, bonds, or even commodities, and is traded on the exchange like a regular stock. The main difference between an ETF and other investment products is that it allows investors to achieve diversification, like in mutual funds, while remaining as flexible and liquid as stocks.
Key features of ETFs:
Diversification
Low costs
Transparency
Liquidity
ETFs are an ideal tool for both retail investors looking to access diverse markets with minimal effort and institutional investors aiming to optimize their portfolios and reduce operational costs. These funds allow investments in various regions and sectors of the economy, whether in developed markets of America and Europe or the promising markets of Asia and other regions.
The ITS World ETF is based on the ITS World index, which includes 50 large-cap companies from America, Europe, and Asia, including Kazakhstan.
Key characteristics
| Type: | Index ETF (passive fund tracking the ITS World index) |
| Underlying assets: | Stocks of large-cap companies |
| Benchmark index: | ITS World |
| Ticker: | ITSW |
| Management company: | IPS Capital Ltd. |
| Number of components: | 50 company stocks |
| Asset structure: | Stocks from key global economic sectors (technology, finance, healthcare, industry, consumer goods, etc.) |
| Management style: | Passive management (tracking the ITS World index) |
| Allocation limits: | The share of each component aligns with the weight of that company’s stock in the index's return |
| Management fee (Total Expense Ratio, TER): | 0.2% per annum |
| Dividend yield: | Dividends paid by the stocks in the fund’s portfolio are capitalized (i.e., not paid out but reinvested to increase the ETF’s value) |
| Trading currency: | US Dollar (USD) |
| Exchanges: | ITS, AIX |