WSE operator GPW announces ETFs based on dividend indices; removes fees on ETF trading

"We are working with an entity that is a major provider of ETFs on the Warsaw Stock Exchange. This entity is working on ETFs linked to our dividend indices," Bardzilowski said.

"We will present an instrument that will be very interesting in terms of being able to invest in a wide range of dividend companies on our exchange," he added.

In Poland, Beta ETF is the only ETF provider that bases its solutions on Polish stock indices.

The CEO of GPW said that the operator is waiving the fees charged on trading in ETFs and ETC instruments for the WSE members until the end of 2024 as a promotion.

The introduction of zero fees for exchange members on ETFs is a step designed to increase their accessibility and support the development of long-term investment in Poland, he added.

CEO Bardzilowski also announced the possibility of extending the zero fee for trading ETFs to 2025.

"We have a strategy to support the development of passive instruments and long-term savings on the stock exchange through ETFs," he said.

"The current version of the programme is until the end of the year, but we are in talks with exchange members about extending this promotion for next year as well," he added.

The CEO of WSE operator said that in terms of outreach and promotion of the ETFs, the Exchange's management wants to focus on ETFs based on small and mid-cap indices next year.

"We believe that greater investor engagement in this segment can have a very positive impact on liquidity in the smaller and mid-cap segment, improve their valuations and, in this way, access to funding for these entities," he added.

Year-to-date, the turnover of ETF funds on the WSE has exceeded PLN 1.16 billion (EUR 268.2 mln).

There are currently 13 ETFs and one ETC listed on the WSE, giving investors exposure to several asset classes, including domestic equities: WIG20, mWIG40, sWIG80, WIG20lev and WIG20 short; to foreign equities: S&P500, DAX, Nasdaq-100 3xxlev, Nasdaq-100 2xshort; to bonds: the TBSP index and WSEB-BZW, as well as gold.

Tomasz Bardzilowski also reiterated plans to launch foreign ETFs on GlobalConnect.

"This is an important market for us. Someone may say that it is competition for domestic players, but investors have very quick access to foreign investments at their brokerage offices anyway," he said.

"We want them also to be able to find a place to diversify their portfolios on the WSE," the CEO added, explaining that this is why the WSE's operator wants to continue to expand the number of companies listed on GlobalConnect.

"(...) there will be new information in the coming days - but our target plan is also to list more foreign ETFs in this segment of our market," he added.

An ETF (Exchange Traded Fund) is an exchange-traded investment fund that aims to mimic indices, i.e. to invest in the same securities that make up a stock market index, in the same proportions.

It is estimated that there are more than 5,700 ETFs, based on different types of indices, listed on various stock exchanges around the world.

pr/ ao/