Albilad MSCI US Tech ETF starts trading on Tadawul today

Logo of Albilad MSCI US Tech ETF

Albilad MSCI US Tech ETF will list and begin trading on the Saudi Exchange (Tadawul) today, Jan. 23, with the symbol 9407 and ISIN Code SA15OG54IVK.

The daily and static price fluctuation limits of +/- 30% and +/- 10%, respectively, will apply.

In August, the Capital Market Authority (CMA) gave the green light to Albilad Capital to float units of Albilad MSCI US Tech ETF on Tadawul, Argaam’s data showed.

The subscription began on Jan. 12, with the 30 business days offering period ending on Feb. 22.

The minimum amount to commence the fund operations is SAR 10 million. In case this amount is not collected during the initial public offering (IPO) period, the fund manager must return to the unitholders the subscription amounts and any returns resulting from their investment without any discount.

The fund manager has the right to extend the IPO period for 30 business days, with the right to close it prior to that date.

Albilad MSCI US Tech ETF is an open-ended public and Shariah-compliant ETF that aims to track and simulate the performance of the MSCI USA Islamic Tech Index before calculating any dividend, fees or charges. It invests in both the US and Saudi capital markets.

The fund's investment objectives are to achieve long-term growth and capital gains through the passive management of a basket of US-listed stocks compliant with the standards of the Shariah Supervisory Committee (SSC), and concentrated in the technology sector, in order to seek a level of performance that matches the benchmark index before calculating any distributions, fees or expenses. The fund will invest at least 95% of its net asset value in the shares of these companies.

The ETF will invest a maximum of 5% of the fund's net asset value in investment-grade money market transactions concluded with a regulated party licensed by the Saudi Central Bank (SAMA) or a similar supervisory authority outside the Kingdom, and money market funds licensed by the CMA or a similar regulatory authority, including funds managed by the fund manager, to pay any expenses or financial obligations.

The fund targets individuals, legal investors and government entities wishing to invest inactively in US technology stocks, and who meet the conditions for investment in this fund, taking into account the fund's investment objectives and the risks associated with investing in the fund.

Here is the most important information about Albilad MSCI US Tech ETF: