What is the idea of Albilad MSCI US Equity  ETF?​

It is an open-ended public traded investment fund, compliant with the regulations of the Sharia Board, that provides an opportunity for traders in the Saudi market wishing to invest in the US stock market easily.

What is the Fund's objective?

The Fund aims to track and simulate the performance of the "MSCI Islamic Index A Series" which is designed to measure the performance of the large and mid cap segments of the US market that are compliant with the regulations of the Sharia Board. before calculating any distributions, fees, or expenses.

What is the added value?

Investing in Shariah compliant stocks in the US market is easy by tracking the performance of the MSCI Islamic Index A Series in a convenient way.

What is the Fund duration?

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

What is the minimum purchase amount for the Fund's units?

 There is no minimum to purchase units from the market.

What is the nominal unit value?

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

How much are the subscription fees?

There are no subscription fees.

Can individuals and companies invest in the Fund?

Yes, buying and trading units are available for individuals and companies.

How are units purchased and traded after the Fund initial offering period?

Since the Fund is traded and listed on the Saudi stock market, the Fund's units are traded by executing the buy and sell transactions of these units in the Saudi Stocks Exchange (Tadawul) through Albilad Capital or any other licensed broker in the market.

What are the documents required to open an Investment Account?

If you have a current account with Bank Albilad, What is required is only the National ID Card for Saudis, passport and ID for GCC nationals, passport and Resident ID for non-Saudis, in addition to filling and signing an investment account agreement form electronically.

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

How are the Fund's assets valued?

The Fund has two valuation points:

The Fund's net asset value per unit at the end of the day (NAV): by calculating the total value of the Fund's assets based on the daily closing prices in the US market and the available cash component, deducting the fees due and dividing the result by the number of existing units. The Fund's assets are evaluated on the official working days of the Saudi market, and the announcement is made before the start of the Fund's trading in the Saudi market, and when that day is not a working day for the Saudi market, the evaluation will be the next working day for the Saudi market. For example, the evaluation of unit prices for Thursday of each week will depend on the closing prices of the preceding Wednesday for the US stock market, and the evaluation of unit prices for Sunday of each week will depend on the closing prices of the preceding Friday for the US stock market.

The Fund's indicative net asset value per unit (iNAV): It will be announced during the trading hours of the Saudi market. The indicative net asset value of the Fund unit (iNAV) is calculated by calculating the total value of the Fund's assets according to the latest price and the available cash component, then the accumulated expenses are deducted as at the end of the last working day for the Saudi market, and the result is divided by the number of existing traded units. The Fund's indicative net asset value for the unit will not change during trading in the Saudi market due to the non-overlap of working hours between the two markets, and if there is an overlap between the two markets, the Fund's indicative net asset value (iNAV) will be updated. For example, the indicative asset value of the unit (iNAV) for Thursday of each week will depend on the closing prices of the companies for the previous Wednesday for the US stock market, and the value of the indicative assets for the unit (iNAV) for Sunday of each week will depend on the closing prices of the previous Friday for the US stock market.

The indicative net asset value of the unit will be announced on the Fund manager's website www.albilad-capital.com and the website of the Saudi Exchange (Tadawul) www.tadawul.com.sa. The accurate and updated information of the registered unit holders will be kept at the Securities Depository Center (Edaa).

Can unit holders view the Fund's performance?

Unit holders reports as well as the annual and preliminary reports will be made available on Albilad Capital website www.albilad-capital.com and Tadawul website www.tadawul.com.sa

Does the Fund pay Zakat?

The Fund will not pay any Zakat due on behalf of the Unitholders

The unit holder is responsible for paying the Zakat from the value of his units.

Does the Fund pay any dividends?

The Fund will not distribute any cash dividends to the investors but will reinvest the dividends resulting from investing in the Fund's assets.

What is an Exchange Traded Fund (ETF)?

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 listed 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 iNAVs can be provided.

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

•  Cost: The Fund provides a lower cost compared to other Funds.

How are ETFs traded?

Investors can trade ETFs like any security by contacting any licensed  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 Indicative 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 initial public offering (IPO) stage when ETF managers offer units of the ETF.

Second: through the financial market Tadawul (secondary market) after the units of the Fund are traded in the market, through buying and selling of units from the unit holders or the market maker.

Who is issuing ETFs units?

Capital Market Institutions (CMI'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?

ETFs are not subject to certain ownership limits as in stocks.

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

The minimum number of units that an investor can buy through the traded Funds 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, and in most cases units are bought and sold at a price that is very close to NAV .​

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?

 Investment 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.