AgioFunds launches Poland’s first ETF

Jan 8th, 2019 | By | Category: ETF and Index News

Warsaw-based asset manager AgioFunds has launched the BETA WIG20 ETF (BETAW20T PW), the first ETF to have its primary listing on the Warsaw Stock Exchange (GPW).

Warsaw Stock Exchange

The fund is the first ETF to have its primary listing on the Warsaw Stock Exchange.

Marek Dietl, President of GPW, commented, “We are very happy about today’s new listing. This comes as another step in the development of the ETF market. ETFs are very popular on the global financial markets and are bound to enjoy popularity in Poland. I believe that the listing of this new ETF will offer tangible benefits, sparking more interest in GPW’s products and attracting new domestic and international investors to the local capital market.”

“This is a historic moment for our capital market,” added Adam Dakowicz, President of AgioFunds. “2019 will be the year of ETFs. The new GPW-listed instrument is easily available to all categories of investors. All holders of brokerage accounts may freely buy and sell the ETF just as they buy stocks; however, liquidity of the ETF market should be much stronger. I do believe that the product will have many devout users, becoming a part and parcel of investment portfolios.”

The fund tracks the WIG20 Index, the main equity index of GPW. The market cap-weighted index is made up of 20 companies. Currently, the largest constituent is Polski Koncern Naftowy ORLEN (oil) at 14.7%, followed by Powszechna Kasa Oszczędności Bank (14.1%) and Powszechny Zakład Ubezpieczeń SA (11.7%).

The new ETF comes with an expense ratio of 0.40%, significantly cheaper than the Expat Poland WIG20 UCITS ETF (PLX GY) which launched on Bulgaria Stock Exchange and cross-listed on Deutsche Börse in early 2018. This fund comes with an expense ratio of 1.38%.

Poland’s economy and capital markets have undergone positive developments in recent years including advancements in infrastructure, trading security, and post-trade services. This progress led to index provider FTSE Russell promoting Poland to developed market status as part of the firm’s annual country classification review in October 2017. With the upgrade, Poland became classified as one of the 25 most advanced global economies and the first Eastern European country to attain this status.

On 26 November 2018, GPW, AgioFunds, brokerage services provider Beta Securities Poland, and market maker Dom Maklerski BOŚ signed a memorandum of understanding to establish co-operation in the development of new products on the Polish capital market and to promote investor education. The listing of the AgioFunds ETF is a part of these efforts.

“We focus on the delivery of transparent and cost-effective ETFs to the market,” said Robert Sochacki, Management Board Member of Beta Securities Poland. “The Beta WIG20 ETF is the first fund in a series under development. As of today, investors get a tool that tracks a leading GPW index in a simple and inexpensive way. New products will be offered with time, which will certainly prove attractive to Polish and international investors alike.”

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