Qatar Exchange Traded Fund


Doha Bank and Amwal have partnered, and in close coordination with the Qatar Stock Exchange and local regulators, to create a new listing that supports the Exchange with its vision towards growing the investment platform via new offerings in Qatar. The open ended investment fund is structured as an exchange traded fund or ETF. In line with this initiative, we are proud to announce that the bank as Founder and Amwal as Fund Manager has received final listing approval for Qatar’s 1st ETF – The QE Index ETF or ‘QETF’ which listed on March 5, 2018.

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Fund Description

Founder Doha Bank, Q.P.S.C.
Fund Manager Amwal LLC
Liquidity Provider The Group Securities Co.
Auditor Ernst & Young, Qatar
Legal Advisor K&L Gates
Base Currency Qatari Riyal (QAR)
Commercial Registration number 96762
QCB License number IF/26/2016
Qatar Exchange Ticker QETF
ISIN QA0001W26QQ0
Net Asset Value 1/100 of the price index (estimated to be on listing day)

For more details click here or Inquire Now

Key Investor Information

  • The QETF seeks to replicate the investment outcome of the Qatar Stock Exchange price index, through investing in the underlying constituents based on their individual index weights; the crown jewels if you will … like QNB, Industries of Qatar, Qatar Water & Electricity and Ooredoo to name a few…
  • The QETF will distribute accumulated dividends annually, gained from its investment portfolio, net of fees. The QETF expects to pay at the end of the corporate actions period to those shareholders that are entitled on April 30th, or such other date or dates determined by the Founder.
  • Total Expense Ratio is the total cost of managing and operating the QETF, and shall not, exceed the amount of 0.50% of the average daily net assets of the QETF and reflective in the published Net Asset Value (NAV) of the QETF.
  • The QETF is open to retail, institutional and both local and foreign investors in a convenient and easy way to gain exposure to the growth of Qatar via the Qatar Stock Exchange listing. Without having to purchase shares in multiple companies you can get the index with one click by purchasing the QETF. All you need to do is have an investor number (NIN) and an account with a licensed broker that allows you access to the Qatar Stock Exchange for trading.
  • The QETF also has a dedicated ‘Liquidity Provider’ to ensure secondary market liquidity, The Group Securities Company to handle the licensed and regulated activity.
QETF
QETF
Doha Bank
Founder
Amwal
Fund Manager
Qatar Exchange
Qatar Exchange
The Group
Liquidity Provider

For more details click here or Inquire Now

FAQs

An ETF or ‘Exchange-Traded Fund’ is an investment that is built like an investment fund — it invests in individual securities listed on an exchange and trades on an exchange throughout the day like a stock.

The biggest advantages of investing in ETFs versus investing in funds or stocks include:

  • Diversification
  • Tradable
  • Instant Pricing
  • Transparency
  • Low Total Expense Ratio (TER)

Listed ETFs have the same risk profile as listed stocks and hence they are governed by the same rules and regulations as per the local regulators in Qatar, who include Qatar Central Bank (QCB), Qatar Financial Markets Authority (QFMA) and Ministry of Economy and commerce (MEC).

Furthermore, just like stocks, ETFs can go up and down in price depending on market performance. Nothing is guaranteed.

Firstly, the question presupposes that the investment fund that has outperformed a market in the past will continue to do so in the future. Numerous studies by unbiased researchers have shown clear evidence that funds with leading performance records are more likely to underperform than outperform the market several years into the future. Many investors have concluded that they are better off not taking the risk and instead remain happy with the market returns of an index fund. Secondly, actively managed funds inevitably have higher annual management fees and performance fees.

A NAV or ‘Net Asset Value‘ means the value of units on a particular Dealing Day, calculated by dividing the Total Net Assets by the total number of units outstanding as of that Dealing Day, and rounded to two decimal points.

QETF ‘QE Index Exchange Traded Fund‘ is a conventional ETF founded by Doha Bank to replicate the investment outcome of the Qatar Stock Exchange price index, through investing in the underlying constituents based on their individual index weights.

QETF is managed with a passive investment strategy. As a result, QETF is expected to hold the constituent securities of the index regardless of the current or projected performance of a specific security or a particular industry or market sector in the index.

On the other hand, Al Hayer Fund is an actively managed investment strategy, which primarily invests in listed shares and other securities issued by companies established or operating in GCC countries. The Fund Manager has the flexibility to invest in initial public offering of shares of companies in these countries, money market and fixed income instruments, bank deposit accounts, sovereign bond issues of GCC countries, and other funds and unit trusts which invest predominantly in securities of companies listed on qualifying exchanges.

QETF is available for everyone. All you need is a National Investor Number (NIN) and a brokerage account that allows you to buy or sell the QETF on the Qatar Stock Exchange.

Yes. QETF is a unit class of Qatar index funds, and after the underlying’s distribute their dividends the fund will declare a dividend. Dividends, if any, will be distributed annually, end of each April or there about. If you decide to invest them, you can add more fund units through your local brokerage account.

No, Doha Bank does not offer brokerage services at the moment. However, you can buy the QETF just like you would buy any other tradable instrument on the Exchange through your local broker.

You can place any type of trade that you would with stocks, including:

  • Limit orders, which ensure that you get a price in the range you set—the maximum you are willing to pay or the minimum you are willing to accept.
  • Market orders, which are likely to execute immediately at the best available price, but you have less control over the price you pay or receive.

The market price of the QETF is 1/100th of the price index on the day of listing. Moving forward net of fees will be the tracking error. At the end of each trading day, the actual NAV will be published and the Qatar Stock Exchange (QSE) will use it for the next trading day, as they are responsible to publish an iNAV throughout the trading day which will be updated every 15 seconds.

The market price can change throughout the trading day and may be above or below the total value of the underlying stocks the ETF invests in. Though the difference is usually small, it could be significant when the market is particularly volatile.

The market price of an ETF is driven in part by the supply and demand during the trading day, while the actual NAV at the end of day will account for costs, cash and underlying closing positions.

Note:

Doha Bank’s retail, commercial and corporate products are granted at our sole discretion and are subject to the Bank’s terms, conditions and acceptance.