ITS World Index ETF achieves 5.9% growth in first quarter since launch, outperforming peers
Shares in the exchange-traded fund (ETF) tracking the ITS World Index grew by 5.9% during its first full quarter of trading, outperforming many market peers thanks to the diversified composition of the trading platform’s flagship index.
Trading in the first index ETF on Kazakhstan's financial market and in Central Asia began on November 7, 2024 under the jurisdiction of the Astana International Financial Centre (AIFC).
The new instrument, denominated in U.S. dollars and trading under the ticker ITSW, attracted strong investor interest from day one. Between Nov. 7, 2024 and Feb. 6, 2025 the ITS Index rose by 5.9%, outperforming both its peers and bank deposits. The total return index, which includes dividends, grew by 6.3%. In comparison, Kazakhstan's tenge-denominated benchmarks KASE and AIX gained 4.6% and 4.9%, while the tenge weakened by 4.6% over the same period. Meanwhile, the U.S. dollar-denominated S&P 500 and Nasdaq increased by 2.3% and 4.2%, respectively. A U.S. dollar deposit in Kazakhstan during this three-month period would have earned just 0.25%, based on an annual rate of 1%.
If this quarterly performance were sustained over a year, ITSW could generate an annual return of nearly 24% in U.S. dollars.
"The first three months of ITSW trading show that our flagship product can deliver high returns and compete successfully in the market. We review the composition of the ITS World Index every three months to ensure an effective and balanced portfolio structure. This approach helps us maintain strong returns for our investors," said Alexander Diakovsky, Managing Director of ITS.
ITSW mirrors the performance of the ITS World Index, which comprises 50 of the largest companies by market capitalisation across the U.S., Europe and Asia, including Kazakhstan. The index is well-diversified, helping to minimise volatility. The top 10 securities make up 30% of the index, while the top 20 account for 50%, with a concentration cap of 10% per issuer. High liquidity is a key requirement for inclusion, ensuring seamless replicability.
ITSW remains affordable to investors, with one lot equating to a single ITSW share.
"The ITS World Index is a reliable investment tool that appeals to those seeking exposure to global markets with a focus on developed economies and high-growth sectors," said Diakovsky.
The strong performance of ITSW, along with the launch of the ITS Shariah Index ETF in January 2025, has significantly boosted trading volumes on ITS, reaching $0.7 billion that month. This trend is expected to continue as more participants enter the market and the range of investment instruments expands.
"Three months after ITSW's launch, we see that the market has already recognised this convenient new instrument. There is still much work ahead in developing our trading platform and attracting more clients," Diakovsky added.
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 Central Securities Depository Limited, the central depository for ITS, offers depository services for the storage and settlement of securities. The depository has received Qualified Intermediary with primary withholding responsibility (WQI) status from the U.S. Internal Revenue Service (IRS).
Operating a clearing house that acts as a Central Counterparty, ITS assumes the counterparty role for all obligations of clearing participants and manages the clearing process for transactions on the ITS trading platform.
ITS also calculates its own indexes: the ITS World index (ITSW) and the ITS Shariah index (ITSS).
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