Participation ETFs

Exchange traded funds (ETFs) are mutual funds traded on equity-exchanges, which are based on an index and aim to reflect the performance of its base index to the investors.

ETFs are issued based on an index, and invest in the securities on its base index in proportion to their weight in the index. Therefore, for example, an investor willing to invest in BIST-30 index invests in an ETF rather than purchasing the equities of the index separately, and has the opportunity to invest in that index, and benefits from the proceeds of the index.

Exchange traded funds are portfolios created by authorized intermediary institutions through the purchase of securities on the base index using the cash collected from investors. ETFs reflect the returns on the equities or other instruments (gold, bond, foreign exchange, etc.) on the base index.

The basic characteristic of ETFs is that their participation certificates can be traded on Borsa İstanbul just like equities. Exchange traded fund shares can be traded on the Borsa İstanbul Fund Market through intermediary institutions like equities.

INVESTING in ETFs

In recent years, the number of ETFs in Türkiye has rapidly increased, combining the high liquidity and ease of trading of shares with the benefits of mutual funds, such as risk diversification and enabling investors to benefit from the returns of the markets in which they invest.

The indicative portfolio composition announced at the end of each trading day, provides investors with the opportunity to transparently track the entire content of their investments on a daily basis. Thus, investors can monitor which securities and in what amounts are held within the ETF they own. ETFs can be easily bought and sold like equities during the session.

Listed Participation ETFs