ITS to launch trading of ETF on Its own index ITS World in September
By the end of September, the international trading platform ITS will offer a wide range of investors the opportunity to trade ETF (exchange-traded fund) shares based on its own index, ITS World, which tracks the performance of stocks from global and Kazakhstani companies.
The ITS World ETF (trading ticker: ITSW), registered by ITS at the Astana International Financial Centre, is the first index fund in Central Asia. The fund’s assets comprise a basket of securities from leading companies across various global regions, replicating the ITS World—the flagship index of the ITS trading platform.
A key feature of the ITS World ETF is that it enables investors to gain exposure to companies in the Americas, Europe, and Asia, including major players in the Kazakhstani economy, through a single investment in the index fund’s shares.
The fund will consist of 50 securities from some of the largest issuers worldwide, including companies such as Alibaba.com, Apple, AstraZeneca, Microsoft, Nvidia, SAP and Toyota, along with Kazakhstani companies like Kaspi and KazMunayGas.
“The global ETF market has surpassed $11 trillion, driven by its popularity for low entry costs, simplicity and liquidity,” said Alexander Diakovsky, Managing Director of ITS. “The launch of the ITS World ETF makes fund shares accessible to investors in Central Asia, offering broad diversification and appealing particularly to those who are new to the global stock market.”
Starting from the first trading day, ITS World ETF shares will be available to investors from 10:00 until 03:45 the following trading day. Market makers will ensure that the bid-ask spread for the ITS World ETF remains below 1 cent.
“This makes the ITS World ETF not only a valuable long-term investment tool but also an excellent asset for short-term intraday trading,” said Alexander Diakovsky.
The ITS World index has shown strong performance in the past. According to back-testing conducted by ITS since the summer of 2020, the ITS World index has grown by 95.5%. Since the beginning of this year, the ITS World index has increased by 15.8%.
The ITS World ETF offers unique features for the Central Asian market, enabling a broad range of private and institutional investors to trade fund shares. The shares are denominated in US dollars, with an initial price of $10 per share, and the management fee is set at 0.2% per annum, aligning with global industry standards for ETFs.
The fund is managed by IPS Capital, which is licensed by the AIFC to oversee funds for retail investors. Detailed information on the fund’s composition, real-time performance, index methodology and related documents are available on the ITS website.
Investors should be aware that ETF shares and securities are high-risk assets. Past performance data is provided for informational purposes only and should not be viewed as an indication of future results. The value of ITS World ETF shares may fluctuate, reflecting the price movements of the securities in the ITS World basket.
About ITS
ITS is an international liquidity hub. Central to ITS's business model are the principles of best execution and smart order routing technology. These principles enable investors to execute securities transactions at the best prices available on the global financial market, regardless of the transaction volume. This technology ensures that the liquidity for foreign securities on ITS matches that of leading international platforms where these securities are traded.
ITS offers access to over 2,700 international securities, including ETFs, stocks and depositary receipts. The international securities available on ITS are part of major global indexes, including the Dow Jones Industrial Average, Nasdaq-100 and S&P 500, spanning 69 sectors of the global economy.
The ITS trading session lasts for nearly 18 hours, with securities settlements conducted on the next trading day (T+1). The ITS trading calendar is synchronised with those of NASDAQ and NYSE. Direct clients of ITS include professional securities market participants from Kazakhstan and other countries, such as financial intermediaries that are either accredited or directly registered with the AIFC. Investors, both private individuals and legal entities, access trading through financial intermediaries like brokers and banks.
ITS's direct clients include professional securities market participants from Kazakhstan and other countries, such as financial intermediaries who are accredited and directly registered at the AIFC. Investors, both private individuals and legal entities, access trading through these financial intermediaries, such as brokers and banks.
ITS Press Service
pr@itsx.kz