Chimera S&P India Shariah ETF Listed On ADX

Chimera S&P India Shariah Exchange Traded Fund (ETF), the first ETF tracking Indian equities to be launched in the region, has been listed on Abu Dhabi Securities Exchange (ADX), one of the fastest growing exchanges in the world last week.

ETFs are investment funds that trade on exchanges and track specific indices and investors receive a bundle of assets that can be bought and sold during market hours, reducing risk and exposure under such schemes.

Managed by Abu Dhabi-based investment management firm Lunate Capital LLC, the ETF replicates the S&P India Shariah Liquid 35/20 Capped Index, tracking the 30 largest and most liquid Shariah-compliant Indian companies listed on the Bombay Stock Exchange, including industry leaders like Reliance Industries, Infosys, and Tata Consultancy Services.

ADX has established itself as the most active and liquid ETF marketplace in the MENA region, with ETF trading values exceeding $1.36 billion in 2023, a 160% increase from the previous year, and total ETF trading volumes reaching 1 billion units (representing 205% Year-over-Year growth).

This surge in ETF trading is attributed to ADX’s infrastructure and its strategy of innovation and expanding investment options and solutions, following the launch of the exchange’s new identity for the ETF market in November 2022.

By offering the UAE-based investors a direct access to the Indian market, the addition of the Chimera S&P India Shariah ETF further strengthens ADX’s position. Investors now have direct access to eight regional and global markets around the world. This listing marks the 11^th listing of an ETF on ADX.

Shows Investors’ Support

ADX CEO Abdulla Salem Alnuaimi, while congratulating Lunate Capital on the successful listing of the Chimera S&P India Shariah ETF, he said that the strong market interest of this ETF demonstrated the investors’ support and their vote of confidence in ADX as their investment partner and financial trading platform.

“We will continue to broaden ADX’s connectivity to more markets and unlock investment avenues to offer investors strategic opportunities for greater portfolio diversification and sustainable long-term growth,” Alnuaimi added.

Sherif Salem, Partner and Head of Public Markets at Lunate, said that the Chimera S&P India Shariah ETF allows the investors in the UAE easy access to some of the largest Shariah- compliant companies listed in India.

“India presents an exciting investment opportunity – it is a fast- growing economy and is home to the fourth-largest stock market in the world. Our latest ETF listing enhances the range of funds available to investors in the UAE, now giving them direct access to markets in eight different countries worldwide,” he added.

The Chimera SP India Shariah ETF is designed as a physical, in-kind, liquid, and fully fungible fund. It tracks Shariah-compliant Indian equities listed on the Indian stock markets and intends to distribute dividends semi-annually, when available.

The listing also underscores ADX’s strategic approach to offering diversified and innovative investment solutions, catering to the evolving needs of both retail and institutional investors globally.