ETF issuer welcomes Kuwait index upgrade

Standard & Poor’s decision to upgrade Kuwait to its Global and Emerging Benchmark indices is likely to keep investment tailwinds strong, according to ETF issuer HANetf.

The index upgrade is expected to add $2 billion of passive inflows in 2019 and with fellow index provider MSCI likely to upgrade Kuwait in December, a further $10 billion of passive and active flows is expected in 2020.

HANetf has its own Ucits ETF focused on Kuwait equities (KUW8) which added two more Kuwait stocks (Burgan Bank and Kuwait Investment Projects) following a quarterly rebalancing.

It has become the fastest growing ETF on HANetf’s platform, says co-CEO Hector McNeil who said that that Kuwait’s economic reforms and strong fundamentals have led global investors to adopt ETF’s as their preferred way to access Kuwait equities.

“Given KUW8 is the only such ETF in the World we expect significant future growth,” said McNeil.

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