iShares, the world’s leading Exchange Traded Fund (ETF) provider, today announced the launch of its first ETF product with underlying assets in the GCC region ex-Saudi Arabia (ticker: IGCC). The fund provides a transparent tool for investors looking to geographically diversify their asset allocation.
The IGCC seeks to track the MSCI GCC Countries ex-Saudi Arabia index, providing the fund with a reputable and proven benchmark while ensuring that there is adequate diversification in the fund.
Robert Broadwell, Head of Sales for iShares, Middle East commented, “We are delighted to offer investors the opportunity to diversify their portfolios geographically, through ETFs, into regions which were previously difficult to access. The launch is in response to client feedback asking for index-based products which are simple, cost efficient and transparent, providing instant access to the GCC equity markets.”
The fund is a vote of confidence in the region and its infrastructure, as the assets that make up this product are pillars of the GCC countries’ economies. Additionally, the IGCC ETF provides pan GCC ex- Saudi Arabia exposure for international investors in one simple trade.
As other avenues for investment in the region slow down, IGCC is a new structured tool for investors to invest in the region. The product, unlike most perceptions of investment in the region, is not an ‘oil fund’ and is primarily focussed on the services and banking sectors.
“Institutional investors have realized that the GCC economies are diversifying into industries such as financial services, telecoms and industrial sectors, which are expected to provide long term investment opportunities. The growth rates in these sectors are expected to be higher than in developed markets and institutional investors would like to invest and subsequently participate in this growth”, continued Broadwell.
There is full transparency into the fund’s underlying holdings, which are available on the UK iShares website daily. The IGCC ETF is listed on the London Stock Exchange and has begun trading in US dollars.
