By Andrei Skvarsky.
Sberbank, the biggest Russian lender, has launched the first Russian exchange-traded fund with the ETF beginning to trade on Moscow Exchange on September 17, the bank and exchange have announced.
Fourteen other ETFs have been trading on Moscow’s bourse for a while but all of them are foreign funds.
ETFs are high-liquidity investment funds that trade on stock exchanges like common stocks, tracking an index.
Sberbank CIB, which is Sberbank’s investment arm and one of Russia’s biggest brokerages, is the new ETF’s market maker – it is responsible for maintaining the fund’s liquidity by buying and selling shares in it at prices it quotes in Moscow Exchange’s system.
According to Yevgeny Zaitsev, chief executive of Sberbank Asset Management, the ETF primarily targets retail investors. However, “we have a long-term plan to launch ETFs for institutional investors as well,” a statement from Sberbank quoted him as saying.
Sberbank plans to “launch a minimum of three new ETFs before the end of the year,” Zaitsev said.
Fees for owning a share in the ETF will total a maximum of 1.1 per cent per year, according to the statement. This does not include commission payable to brokers.
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