As investors’ confidence continues in the Qatari market, Doha Bank (as Founder) and A v e n t i c u m C a p i t a l Management Qatar (as Investment Manager) are pleased to mark the 3rd anniversary of the QE Index ETF “QETF”, Qatar’s first conventional exchange traded fund (ETF) and one of the GCC’s largest ETFs.
The timing is monumental with the lead up to World Cup 2022 in Qatar and the recent announcement by the Cabinet of Ministers for the proposed change to foreign investor limits to 100 percent for listed constituents. The QETF has generated a total return of 39.25 percent since inception (first rebalance was on February 12, 2018).
The QETF has assets under management of approximately QR428.5m ($117.7m) and is benchmarked to the QE Index; as on close April 29, 2021. The QETF tracks the performance of the QE Price Index, which offers access to the 20 largest, most highly capitalised and liquid companies in Qatar through a single listed product.
The fund is a listed transparent, liquid and low-cost investment product which was launched in 2018 as part of the Qatar Exchange’s initiative to provide local and international investors with an efficient way to gain exposure to the strongest and most liquid Qatari companies.
At the time of listing, Qatar Stock Exchange (QSE) CEO Rashid Mansoori stated that “the ETF is in line with the Government’s vision of promoting sound investment products listed on the Exchange, as part of Qatar’s Vision 2030.”
Commenting on the anniversary, Doha Bank CEO Dr. R Seetharaman said: “Clients are seeking more income, at a time of low rates and low returns with less risk as ETF assets under management just crossed $8.3 trillion globally,” The Index currently offers a dividend yield of 2.70 percent, which the Fund distributes annually.
The QETF paid out dividends in each of its first three years of operations, and last year the QETF paid out dividends in two installments. This was the first time any listed company or investment fund had multiple payouts since the inception of the Qatar Exchange.
Mohsin Mujtaba, Director of Product & Market Development at QSE added: “The Qatari market has provided an average dividend yield of 4 percent over the last 10 years compared to 2 percent by US markets”.
Fahmi Alghussein, CEO of Aventicum Capital Management (Qatar), said: “The QETF’s three-year track record of strong performance has cemented our reputation as a leading investment manager in the region across active and passive.
This milestone will enable a greater number of investors and allocators to access the compelling investment opportunity in Qatar.” The QETF also boasts one of the lowest total expense ratios (TER) among emerging market ETFs, with 0.50 percent in TER.
The QETF was able to provide for a minimal tracking error of about 0.28 percent when compared to the tracked index.
