The ETF gained high popularity in the Western market, said Irina Krivosheeva. “The success of the ETF is largely due to their unique positioning in its properties, they are somewhere between a direct purchase of securities and investments in mutual funds. Their advantages in the simultaneous diversification and liquidity,” — says the financier.
Russia ETFs at the very beginning of its development, while the world is one of the most popular investment products, said Forbes, the Director of Department of stock market of the Moscow exchange Boris Blokhin. Thus, the size of the global ETF market is about $5 trillion and is growing at about 15% per year.
According to portfolio Manager of the criminal code “Kapital” Vadim Bit-Avragim, a new exchange traded Fund will be useful to the Russian stock market, as the country’s infrastructure for the active investor does not give access to the sector of foreign high-tech companies. However, such issuers are unable to show revenue growth of 20-30% per year, providing a high return on their shares, said Bit-avragim. “Now the infrastructure to access the unskilled investor to a foreign index is only at the St. Petersburg stock exchange and ETF FinEx Funds and ITI. Also to be accessed by investing in mutual Funds, the portfolios of which are the stocks of technological companies, but these are few in Russia,” explains the Manager.
In April 2018, Reuters wrote , citing its sources that the Moscow exchange plans to launch trading in shares of the 50 largest Western companies, settlements which were to be held in US dollars. However, September 2018, the head of exchange Alexander Afanasiev said that the start of trading delayed , including because of new restrictions that may be imposed against Russia by foreign States.
“Moscow exchange is not working yet with the stocks of foreign companies, and, in my opinion, this is due to political motives. Masuria is Russian infrastructure, and it is intended for the development of the Russian stock market. Otherwise Russian money will go to foreign markets”, — said Vadim Bit-avragim. The launch of the ETF on the Nasdaq Composite index will allow market participants to allot their funds in the shares of promising segment, he said.
The appearance of another liquid instrument in the market should please investors, especially if it gives access to us high-tech sector, which over the past five years showed one of the best investment results, agrees the head of Department on work with financial assets Citibank Mikhail Znamenskiy. “The theme remains popular for short-term and long-term investment horizons, and despite the recent correction, this sector continues to show a positive result for the year,” he says. According to the financier, if an ETF on Nasdaq will be available in a wide range of players, he will be able to compete with dollar-denominated deposits and government bonds rates and yields which are now at low levels.