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Trackinsight: Saudi Arabian ETFs generated over +40% gains this year

November 16, 2021 at 10:15 am EST

Saudi Arabia, the largest economy in the Gulf Region, has garnered investors' attention this year with the Tadawul All Shares Index (TASI) gaining +36%.

Saudi Arabia, the largest economy in the Gulf Region, has garnered investors' attention this year with the Tadawul All Shares Index (TASI) gaining +36%. Leading the charge are Saudi Advanced Industries Company (+169%), Fitaihi Holding Group (+157%), Sahara International Petrochemical Company (+156%) and Middle East Paper Co. (+135%). The oil giant Saudi Aramco on the other hand, only managed to gain 6% this year, largely underperforming its peers BP (+34%), Exxon Mobil (+56%) and Chevron (+38%) among other.

In the ETF space, 5 Saudi Arabia ETFs have attracted more than $250 million in inflows year-to-date and grew to a combined $1.76 billion in assets under management (AuM).

The biggest of them all is the iShares MSCI Saudi Arabia ETF (KSA) with $1.03 billion in AuM. The fund provides exposure to Large and Mid-cap Saudi Arabia Equities by tracking the MSCI Saudi Arabia IMI 25/50 Net Total Return Index - USD.

The Financial sector has the highest exposure with 45%, followed by Materials (25%), Energy (7.75%) and Communication (6.1%). Its 83 holdings include Al Rajhi Bank (15.24%), The Saudi National bank (12.79%), Saudi Basic Industries (9.57%), Saudi Arabian Oil (6.67%) and Riyad Bank (3.74%).

Since Inception on September 16th, 2015, KSA ETF has generated close to +100% in cumulative returns. This year alone, the fund's Net Asset Value (NAV) rose by +42%. The fund trades on the NYSE Arca and charges an annual fee of 0.74%. The fund has a two UCITS versions, the iShares MSCI Saudi Arabia Capped UCITS ETF (Accumulating) and the iShares MSCI Saudi Arabia Capped UCITS ETF (Distributing), both generating around 45% in gains this year.

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