ETFs are investment funds that track an index and are divided into equal units traded on the stock market during official trading hours similar to trading shares of companies. ETFs enjoy the advantages of both investment funds and stocks at the same time. In the Kingdom of Saudi Arabia, there are some ETFs you may want to consider to invest:
1. YAQEEN Saudi Equity ETF (YAQEEN30)
YAQEEN 30 is a new ticker symbol of FALCOM 30. FALCOM Financial Services was the first to launch an ETF in the Kingdom of Saudi Arabia in 2010. FALCOM 30 ETF aims to provide investors with long-term capital appreciation and growth. The fund passively invests in the listed Saudi equities to achieve the results that correspond to the performance, before fees and expenses, of the Benchmark Index.
2. Yaqeen Petrochemical ETF
Yaqeen Petrochemical ETF is an open-end public investment fund that is compliant with the regulations of the Shariah Board and was established in the Kingdom of Saudi Arabia according to the investment funds regulations issued by the Capital Market Authority (CMA).
The Fund is authorized only to invest in the petrochemicals sector compliant with Shariah controls, listed and traded in the Tadawul within the index's portfolio. The fund may invest its available cash in short-term money market instruments such as Murabaha deals at the discretion of the fund manager and within the framework of the fund's investment objectives.
3. ALAWWAL MT30
ALAWWAL MT30 is an open-ended ETF aiming to achieve capital growth in the long term and aims to achieve a level of performance similar to the performance of the MSCI Tadawul 30 index. The MSCI Tadawul 30 Index is jointly launched by MSCI and Tadawul. The index includes the shares of the MSCI Tadawul 30 Index, which represents the performance of about 30 listed companies that are the largest and most traded companies in the Saudi Stock Exchange. The weights of all this index’s components will remain under a predetermined ceiling at a rate of 15% of the index’s value to limit the dominance of major shares on the index.
4. ALBILAD SUKUK
Albilad Sukuk ETF is an open-ended exchange-traded fund, in line with the standards of Islamic Sharia, regulated under the rules and regulations of the Capital Market Authority in the Kingdom of Saudi Arabia. The fund seeks to track the performance of Albilad IdealRatings Saudi sovereign Sukuk Index, which is made up of Saudi Sovereign Sukuk that is Saudi riyal denominated, listed in the main Saudi Market (Tadawul) and linked to a market maker with remaining 3 months or more in maturity. This ETF is Sharia Compliant.
5. ALINMA SUKUK
Alinma Saudi Government Sukuk ETF Fund Short Maturity is an ETF that invests through the inactive management of a basket of local sovereign Sukuk issued by the Kingdom of Saudi Arabia and listed in the main market and in line with the criteria of the Funds Shariah Committee to achieve performance similar to that of the index before deduction of fees and expenses distributing returns periodically, reducing costs, increasing efficiency and enhancing liquidity by focusing on this type of income-generating investment tool that enables individuals to invest flexibly in debt market instruments.
6. Albilad Gold ETF
Albilad Gold ETF is an open-ended Exchange Traded Fund, that offers investors a Shariah-compliant opportunity to invest in physical gold without the difficulty of storing or insuring gold bullion. The Fund closely tracks the returns of gold through an ETF structure, where units are tradeable on the Saudi stock exchange.
7. Albilad MSCI US Equity ETF
Albilad MSCI US Equity ETF is an open-ended ETF, in line with the standard of Islamic Shariah, regulated in accordance with the rules and regulations of the Capital Market Authority in the kingdom of Saudi Arabia and seeks to achieve long-term growth and Capital gains. The fund allows investors to invest in the US market without the hassle of opening a portfolio in the US stock market and trading directly in Saudi Riyal.