The Abu Dhabi Securities Exchange has observed a 364 percent increase in the value and quantity of trading in exchange-traded funds since the commencement of 2023, in comparison to the same period in the previous year.
According to data from the state news agency WAM, ETF trading on the ADX reached AED 4.5B ($1.23B) by October 11th, establishing itself as the most active and liquid ETF market in the Middle East and North Africa region.
During this timeframe, the volume of ETF trading on ADX rose to 815.7 million units, up from 161.2 million units in 2022, according to Arab News.
The number of such transactions on the exchange also increased by 284.2 percent, reaching 30,800 since the beginning of this year, compared to 8,025 in the previous year.
ETFs: Reducing Risk through Index-Based Trading
ETFs are investment funds that trade on exchanges and follow specific indices. In these arrangements, investors receive a package of assets that can be bought and sold during market hours, reducing risk and exposure.
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.
Under this new brand identity, the ETF platform aims to provide investors with enhanced liquidity and improve the exchange’s capacity to offer a variety of tools and trading strategies.
