ITS to start trading 186 ETFs listed in the United States
The international trading platform ITS will start trading securities of 186 ETFs (exchange-traded funds) listed in the United States, including leveraged funds, on Oct. 31, 2023. The new instruments will provide investors with the opportunity to diversify portfolios and gain access to the global liquidity of the ETF market.
ETFs are funds traded on stock exchanges, similar to shares of public companies. ITS will provide access to ETFs managed by leading global asset management firms, including State Street Global Advisors, BlackRock Financial Management, Vanguard, Invesco, and Charles Schwab. The majority of the funds that ITS will offer are instruments focused on index investing, using leading global indexes such as S&P, Nasdaq-100, Russell, MCSI, Dow Jones, and others as their benchmarks.
ITS will offer ETFs that represent a diverse range of assets and with various investment strategies, including:
- 139 ETFs investing in stocks, including popular ones such as SPDR S&P 500 (SPY), Vanguard S&P 500 (VOO), and Invesco QQQ Trust, Series 1 (QQQ).
- 16 ETFs investing in debt securities, including iShares Core U.S. Aggregate Bond (AGG), iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), and iShares 20+ Year Treasury Bond (TLT).
- Three ETFs investing in gold and silver bullions, including SPDR Gold Trust (GLD), iShares Gold Trust (IAU), and iShares Silver Trust (SLV).
Chingiz Kanapyanov, Chairman of the ITS Board, said:
“ETFs that are in demand worldwide will now be available to ITS clients. ETFs encompass a basket of securities. By purchasing shares of such a fund, investors effectively become co-owners of every security it contains. The ETFs introduced for trading, complemented by widely acknowledged investment strategies, offer various options for geographical and industry diversification. These opportunities include investments in dividend stocks, shares of international companies with advanced ESG programmes, the autonomous and electric transportation sector, the semiconductor industry, biotechnologies, and many other sectors of the global economy.”
Investing in ETFs for bonds will allow investors to take advantage of changes in the financial market during an active review of interest rates, focusing on price movements in specific segments of the bond market's yield curve with varying durations. The SPDR Bloomberg Convertible Securities ETF (CWB) will allow investment in the segment of liquid convertible bonds.
The new list of instruments will feature securities of 18 leveraged ETFs. These funds offer opportunities to invest in a variety of investment themes and market sectors, such as gold, real estate, cybersecurity, fintech, and companies that engage in share buybacks.
Leveraged ETFs are designed to yield returns that correlate with a benchmark index, yet they aim to amplify these returns by two (2x) or three (3x) times the daily performance. Conversely, they can also generate inverse returns at one (-1x), two (-2x), or three (-3x) times the benchmark's daily movement. These ETFs incorporate leveraged financial instruments, such as futures, options, swaps, and forward contracts, among others.
ETFs that use leveraged instruments are designed for short-term trading. Over longer durations—weeks, months, or years—the performance of these funds can deviate substantially from the daily objectives set by the fund providers. This divergence can result in significant and unexpected financial setbacks. In periods of high volatility, the likelihood of incurring losses increases considerably.
ETF transactions on ITS will be carried out in U.S. dollars in accordance with the trading calendar of issuers listed in the United States. Settlements for ETFs will occur on the second day following the transaction date (T+2). The minimum trading unit is one security. From Oct. 31, ETF trading will be executed from 13:00 to 02:00 Astana time.
ETF trading on ITS will be conducted using the additional liquidity of primary listing venues. This ensures the processing of orders of any size while adhering to the best execution principle.
The list of ETF securities is available on the website under the Traded Instruments section.
About ITS
ITS is an international liquidity hub through which investors from Kazakhstan and other countries can trade in thousands of investment products on the global financial market.
The principle of best execution ensures that investors’ trades are made at the best price between those offered on ITS and on leading international stock exchanges.
Smart order routing technology allows liquidity to be attracted from international trading floors in any volume required.
ITS Press Service
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