he Qatar Exchange Index ETF (QETF) announced yesterday that it has achieved a total return of 20 percent during the year 2018, outperforming most exchange traded funds (ETFs) in the world.
The QETF is a Qatari domiciled fund listed on the Qatar Stock Exchange and is one of the largest ETFs in the Gulf Cooperation Council (GCC). The QETF was founded by Doha Bank and managed by Amwal, LLC. The Fund follows a passive replication strategy in tracking the QE index, which comprises of the twenty largest, by market capitalization, and most liquid companies listed on the Qatar Stock Exchange.
The QETF seeks to generate returns through capital appreciation and dividend distribution. This benchmarking to the index allowed for the QETF performance, as the QE Index finished as the 2nd best performer globally in 2018 both in price and total return, +21 percent and 27 percent respectively (in USD).
The fund, during the year, distributed dividends during the second month (2Q18) of its listing in the amount of QR4.25 per unit, yielding 4.46 percent to investors.
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 0.32 percent when compared to the tracked index.
Commenting on the performance, Doha Bank’s CEO, Dr. R Seetharaman said: “this achievement is the culmination of untiring efforts of various parties who contributed to the QETF’s success in its first year of operations. This is a testament of the strength in the Qatari economy and market resilience, post the blockade.
