What is the idea of Albilad Gold ETF?

Albilad Gold ETF is an open-ended Exchange Traded Fund, in compliance with the Shariah standards, and regulated by the rules & regulations of the Capital Market Authority.

What is the Fund's objective?

The Fund aims to mimic the performance of Spot Gold Contracts, which is listed in DGCX (Dubai Gold and Commodities Exchange), to achieve investment returns similar to gold price movements on a daily basis, before deduction of fees and charges.

What is the Added Value of this ETF?

Mimic the performance of Spot Gold hassle-free.

What is the Fund duration?

There will be no fixed term for the Fund and no maturity date.

What is the minimum subscription amount?

There will be no minimum to buy or sell the fund units however, units can be bought and sold through the Saudi stock exchange (Tadawul).

How much is the nominal unit value?

The nominal unit value at the time of the Fund inception is 10 Saudi Riyals.

How much is the subscription fee?

No subscription fees.

Can individuals and companies invest in the Fund?

Yes, the Fund is available for all (individuals and institutions).

How can I subscribe?

Because the Fund is traded, subscriptions and redemptions will be carried out through the execution of buying and selling of units in the stock market.

What are the required documents to open an Investment Account and subscribe online?

If you have a current account at Bank Albilad, National ID Card for Saudis, passport and ID for GCC nationals, Resident ID of residency for non-Saudis, in addition to filling and signing an investment account form electronically.

For more information, please call Albilad Capital (92000 3636)

Who is the custodian of the Fund?

Riyad Capital licensed by the Saudi Arabian Capital Market Authority (NO.07070-37). Commercial Registration No. 1010239234.

How are the assets of the Fund evaluated?

The Fund has two valuation points:

1.    Net Asset Value at the end of the day (NAV): by calculating the total value of the Fund's assets based on the daily Gold closing prices, plus the available cash, deduct any accrued fees, and divide the result by the number of existing units.

2.     Intra-day Net Asset Value (iNAV): will be announced during trading hours and occurs every 15 seconds by calculating the total value of the Fund's assets based on the daily Gold closing prices, and the available cash, deducting any accrued fees then divide the result by the number of existing units.

Both NAV and iNAV of the unit will be announced on Albilad Capital website and Tadawul Website.

Can unit holders see the Fund's performance?

Unit holders reports will be sent to the mailing address, email, telephone and / or fax as indicated on the account opening form unless the Fund Manager is notified of any change in address.

Annual and preliminary reports will be made available on Albilad Capital website www.albilad-capital.com and Tadawul website www.tadawul.com.sa

What is the Fund's risk level?

Medium to high risk.

Does the Fund pay Zakat?

The Fund will not pay Zakat on behalf of subscribers.

Does the Fund pay any dividends?

The Fund will not distribute any dividends to investors.

What are the previous experiences of Albilad Capital Asset Management?

Albilad Capital Asset Management Group offers a variety of products and services, including portfolio management and investment fund management. Asset Management provides clients with accurate information and data on their investments with the highest levels of transparency. The Group also publishes Fund unit prices as well as reports on the performance of Funds periodically.

What are ETFs?

These are mutual funds that follow an index and are divided into equal units that are traded in the financial market during trading periods. These funds combine the advantages of both mutual funds and equities.

What are the characteristics of ETFs?

·         Flexibility: ETFs are clearly characterized by their systems and the ease of dealing with their units - both buying and selling - similar to shares listed on the stock market.

·         Transparency: Securities data included in ETFs and NAVs can be provided.

·         Liquidity: The market maker provides buy and sell offers to enhance liquidity.

How are ETFs trading?

Investors can trade ETFs like any security by contacting any market brokers. These units are created and redeemed by the market maker or any licensed entity.

What is the unit price setting mechanism for ETFs?

The market maker provides buy and sell prices for ETF units close to the Net Asset Value (iNAV).

How can I invest in ETFs?

Just like investing in stocks, there are two ways to invest in ETFs:

First: In the public offering period stage when ETF managers offer units of the ETF.

Second: through the financial market (secondary market) after the units of the Fund traded on the market.

Who is issuing ETFs units?

Authorized Persons (AP's) licensed by the Capital Market Authority.

Are ETFs limited to stocks only?

ETFs are not limited to stocks, but may include Sukuk or commodity such as gold and silver.

Are there limits to the ownership of ETFs?

Albilad Gold ETF is not subject to certain ownership limits.

Is there a minimum or maximum number of units that an investor can buy or sell in ETFs?

The minimum number of units through the Fund market is one unit, while the process of creating units is subject to the terms and conditions of the Fund itself.

What is the trading commission for ETFs?

Trading commission for ETFs is identical to the stock market commission. This commission is 15.5 basis points on each trade without a minimum commission.

Is the unit price of ETFs equal to the price of the constituent units?

The trading price of the units is subject to the supply and demand mechanism, while the NAV value is subject to the market value of the component assets of the unit.

Will the ETF terms and conditions be issued before they are launched and traded in the primary and secondary markets?

Yes, the Fund Manager complies with the regulations of the Capital Market Authority for investment funds, including the disclosure of the terms and conditions of the Fund and is obliged to publish them in an appropriate period before the launch of the Fund.

How will ETFs be priced in the secondary market?

When the Fund is listed in the secondary market, the units will be priced at the net asset value and the current units will be subject to the bid and ask prices.

Can the ETF owner have the right to attend the assemblies and vote on their items?

Funds are directly managed by the Fund Manager, and are subject to the Investment Funds Regulations and the Fund's terms & conditions issued. Accordingly, no general assemblies are held for these funds. Please note that the unit owner has the right to exercise all rights related to units, including voting in the unit owners 'meetings, in the event that the meeting is called for, and the approval of the unit owners for the fund is obtained for any changes that require their approval in accordance with the relevant terms & conditions, and Investment Funds Regulations.

Is investing in ETFs available to all categories and nationalities of investors?

Mutual funds are available to all categories and segments of investors licensed to trade securities.

What are the risks faced by an investor in investing in ETFs?

An investor in ETFs is similarly exposed to the same risk of investing in the Fund's underlying assets.​