From Citywire

Invesco has launched Europe’s first Saudi Arabia ETF, the company has announced.

The Invesco MSCI Saudi Arabia Ucits ETF, will offer investors pure passive exposure to the largest economy in the Middle East. It is available in US dollars on the London Stock Exchange.

This new ETF will track the performance of the MSCI Saudi Arabia 20/35 index, which has constraints to ensure it meets Ucits requirements for diversification and avoids overconcentration in certain parts of the economy.

The index comprises of 22 large- and mid-cap stocks, accounting for approximately 85% of the free-float market capitalisation of Saudi Arabia.

MSCI has included Saudi Arabia in its annual review process, with an announcement due on 20 June 2018 as to whether they will raise it to EM status.

If successful, Saudi Arabia would be included in the MSCI Emerging Markets Index from 2019 with an estimated weighting of around 2.3%, although this would be significantly higher once Aramco and other IPOs are factored in.


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