Exchange Traded Funds (ETFs) listed on the Abu Dhabi Securities Exchange (ADX) trading values have surpassed AED1.4 billion ($380 million) year to date, making the Exchange’s ETFs the most liquid in the Arab world. 

 

Year-to-date growth in the turnover of ADX’s ETF market was supported by more than 11,400 trades of 227 million units. This milestone reinforces ADX’s position as a leading regional ETF hub with the highest number of ETFs among regional exchanges, offering investors diverse investment options, including Sharia-compliant and geographically diverse funds. 

 

Since the first ETF was listed on the ADX in August 2020, the exchange is now home to seven ETFs with an 8th  ETF, the Chimera FTSE ADX 15 ETF to list on November 24.  

 

Passive strategies

To support the increased demand for passive strategies and support the exchange’s derivatives market, ADX partnered with FTSE Russell this year to create a suite of indices, including the introduction of the FTSE ADX Growth Market Index (FADGMI) in the third quarter. 

 

Launched in March 2022, the FADX 15 selects companies by free float adjusted market capitalisation and median trading value.  In June, the exchange introduced FADX 15 futures to provide a new way for investors to facilitate risk management during periods of market volatility.

 

Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of ADX, said: “Reaching this new milestone on the exchange’s ETF market demonstrates the success of the ADX strategy in diversifying our suite of investment products available to investors on the exchange. ADX is committed to enhancing market efficiency and sustainable growth. The ADX ETF market is a testament to our commitment to be the exchange of choice for issuers and investors.”

 

The market capitalisation of Abu Dhabi Securities Exchange has recently surpassed AED2.5 trillion, while the exchange’s benchmark index, FADX15, reached a new high with 10,500 points for the first time in ADX’s history.-- TradeArabia News Service