Qatar Exchange Traded Fund

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 Commerce and Industry (MOCI).

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 three decimal points.

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

The exchange traded fund seeks to track the performance of the benchmark Qatar Exchange Price Index. The Index is the official index of Qatar, and the constituents are the 20 most highly capitalized and liquid companies listed. The QETF is a transparent, liquid and low-cost investment vehicle that offers access to Qatari Equities and the QETF will pay an annual dividend.

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. For more information: https://www.qe.com.qa/broker-contact-information

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.