Reflecting the confidence of the international investment community in the Egyptian market, the French BNP Paribas Bank, one of the leading international banks, has launched the first Exchange Traded Fund (ETFs) on the DJ CASE Egypt Index, which tracks the 20 blue chips of the Egyptian stock market in terms of free float adjusted market capitalization, sales and net income.
DJ CASE Egypt Index was first launched in 2006 by Dow Jones Indexes, a leading global index provider, and the Egyptian Exchange (EGX). BNP Paribas Bank pointed out that the launched ETFs will be a tool for foreign investors to tap the Egyptian market by offering the fund’s certificates on Euronext-Paris, to be traded in Euros.
Worth mentioning that ETFs are structured as an open-ended mutual fund that tracks the movement of an index. These index funds are listed and traded on the stock exchange similar to shares and they allow investors to gain a broader exposure to the stock markets of different countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investments. The certificate's holder is considered as an investor in the basket of securities which are included in the index.
The number of index funds worldwide amounted to 1137 funds, traded in more than 42 stock platforms, with assets under management reaching USD 773.2 billion.
