Abu Dhabi lists first ETF

Abu Dhabi Securities Exchange (ADX) has listed the first ETF in the region, with the launch of the NBAD OneShare Dow Jones UAE 25 fund.

The ETF tracks the performance of the Dow Jones UAE 25 Total Return index, comprising 25 blue-chip companies from across the United Arab Emirates region.

Dow Jones Indexes president Michael Petronella says: "Since the Dow Jones UAE 25 Index combines securities traded on the three local stock exchanges it reflects the broad view of the UAE in a single index."

He adds: "The index is a transparent and liquid vehicle that provides passive exposure to this attractive market."

The index's stock selection universe consists of equity securities traded on UAE stock exchanges, excluding foreign-listed stocks. The three represented exchanges comprise the Dubai Financial Market, the Abu Dhabi Securities Exchange and the Nasdaq Dubai.

Eligible securities must have a minimum daily trading volume of $500,000. The index's stocks are ranked by free-float market capitalisation and the weight of individual components is capped at 8% of the index.

As of February 26, the top three index components were the Emirates Telecommunications Corporation, the First Gulf Bank PJSC, and the Emaar Properties PJSC.

The fund is issued by the National Bank of Abu Dhabi (NBAD), operating in 13 countries and four continents.

ADX says it aspires to become the leading stock exchange in the Gulf region by spurring the development of the UAE capital market, in alignment with the Abu Dhabi government's Economic Vision 2030.