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Polish S&P500 NTR ETF Is Newly Listed

Date 16/03/2021

  • A new ETF on S&P 500 NTR, another Polish ETF on a foreign index, has been newly listed on GPW
  • S&P 500 is an index of 500 US large caps
  • It is the sixth ETF introduced on GPW by Agiofunds in co-operation with Beta Securities Poland and the second ETF to be newly listed in 2021

 

S&P 500 PLN Hedged BETA ETF, a Beta ETF on the index S&P 500 NTR, has been newly listed on the GPW Main List today. AgioFunds TFI is the issuer, Dom Maklerski BOŚ is the offering agent and market maker, and Beta Securities Poland is the co-ordinator of the initiative.

More than a half of all assets of equity funds in the USA are invested in ETFs. Likewise, ETFs are gaining popularity in Europe and Asia because they offer transparency and low costs and are traded on the exchange. Investors can buy and sell ETF units just like shares. The S&P 500 ETF provides exposure to 500 US large caps in all sectors. The biggest index participants are new economy giants including Apple, Microsoft, Amazon and Facebook. However, traditional sectors are also broadly represented in the index. The S&P 500 BETA ETF has an embedded FX hedge, which I believe makes it safer for Polish retail investors,” said Izabela Olszewska, Member of the GPW Management Board. 

S&P500 is an index of large caps listed on all US exchanges and one of the most broadly recognised US large-cap stock indices. Established in 1957, it is the first US index to be weighted with capitalisation. It represents 83% of the total capitalisation on the US market (source: Bloomberg). The S&P 500 ETF is hedged against FX risk, which means that fluctuations of the exchange rate of PLN against the currency of the country of the index (USD) do not affect the valuation of investments.

“As previously announced, we are introducing a new ETF tracking a US index on the Warsaw Stock Exchange. This ETF tracks the most popular index globally, S&P500 which covers the 500 biggest stocks representing more than 80% of the capitalisation of the US market. Like the Nasdaq100 NTR ETF, the S&P500 NTR PLN-Hedged Beta ETF protects investors from FX risk and tracks the index including net dividends,” said Robert Sochacki, Board Member of Beta Securities Poland and Member of the Supervisory Board of Agiofunds TFI.

Radosław Olszewski, CEO of DM BOŚ, also believes that the new product will attract strong investor interest.

“The listing of the S&P500 NTR ETF confirms growing interest and demand for ETFs in the market. The newest ETF provides investors with exposure to the attractive US market. Investors can open positions directly in their brokerage accounts while avoiding FX risk. I am proud that the range of ETFs available to local investors is growing and provides attractive investment instruments,” said Radosław Olszewski, CEO of DM BOŚ.

Exchange Traded Funds (ETF) track (replicate) the performance of an exchange index. ETFs enable continuous (daily) creation and cancellation of investment certificates. Certificates of closed-end portfolio investment funds (ETF units within the meaning of the Exchange Rules) are listed on the Warsaw Stock Exchange in the same way as stocks and can be freely bought and sold. Liquidity of ETFs is supported by market makers (brokers).

For more information about Beta ETFs, visit: www.gpw.plwww.agiofunds.pl and www.bossa.pl.