WSA Banking Index ETF has received regulator’s nod to list at the Nairobi Securities Exchange(NSE). This marks a significant milestone for Kenya’s capital markets.
This brings to three the number of Exchange Traded Funds listed at the Nairobi bourse. Those listed ETFs already approved by CMA include Absa NewGold ETF and Satrix MSCI World Feeder ETF.
Tradium Asset Managers is the Fund Manager of the ETF. This product is an open-ended scheme whose units will list at the NSE.
WSA Banking Index is designed along the paths of NSE Banking Index
That is to say that the WSA Banking Index ETF seeks to replicate the performance of the designated NSE Banking Index.
CMA Chief Executive Officer Wyckliffe Shamiah said that the rollout of this innovative ETF product is part of CMA’s plan to facilitate launch of cutting edge products.
The new ETF meets a growing demand for innovative products. This allows investors to diversify their portfolios and deepen capital markets.
The value of the ETF units fluctuates according to market value of the underlying banking sector shares.
WSA Banking Index ETF Price Determinants
Its price is determined by equity market volatility and interest rate movements. Additionally, the price will track changes in the operating performance of constituent banks. Other determinants are regulatory developments and broader macroeconomic conditions.
The WSA Banking Index ETF is the first locally-assembled ETF. It has been issued by the Wallstreet Africa Group Limited in partnership with Tradiam Asset Managers.
This Exchange Traded Fund will track the NSE Banking Index. This gives investors diversified exposure to 11 listed Kenyan banks through a single investment vehicle. It will also broaden investor access to banking stocks.
Additionally, the WSA Banking Index ETF will track the NSE Banking Index. CMA has already identified 11 listed banking groups as the underlying constituent universe.
