Doha Bank-sponsored exchange traded fund, QETF, has achieved a total return of 20% during 2018, outperforming most ETFs in the world.
“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,” Doha Bank Group chief executive Dr R Seetharaman said.
The QETF is a Qatari domiciled fund listed on the Qatar Stock Exchange and is one of the largest ETFs in the Gulf region. It is managed by Amwal.
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 second best performer globally in 2018 both in price and total return, +21% and 27% respectively (in dollar terms).
The fund, during the year, distributed dividends during the second month of its listing, of QR4.25 per unit, yielding 4.46% to investors. It also has one of the lowest total expense ratios (TER) among emerging market ETFs, with 0.50% in TER; the QETF was able to provide for a minimal tracking error of about 0.32% when compared to the tracked index.
Seetharaman said the QETF is an excellent tool for portfolio diversification and the most efficient way for any investor, whether local or international, to participate in the growth of the Qatari market, one of the best performing markets in the world in 2018.
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