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ASTANA — The International Trading System (ITS) launched Central Asia’s first exchange-traded fund (ETF) on Nov. 7, broadening investors’ access to global securities. The fund, ITS World, is traded within the jurisdiction of the Astana International Financial Centre (AIFC) platform, marking a significant milestone in the development of Kazakhstan’s and Central Asia’s financial sector.
From left to right: Chingiz Kanapyanov, ITS CEO, Alexander Diakovsky, Managing Director with ITS , Roman Goryunov, ITS board member. Photo credit: Nagima Abuova / The Astana Times
The ITS World ETF, listed under the ITSW ticker symbol, began trading at $10.1431 per share, providing exposure to the 50 largest companies across the United States, Europe, Asia and Kazakhstan. The portfolio includes industry giants such as Apple, Microsoft, Amazon and local companies such as Kaspi.kz and KazMunayGas.
Boosting Kazakhstan’s financial market with global standards
At the official launching ceremony, AIFC governor Renat Bekturov emphasized AIFC’s role in supporting the creation of new financial products such as the ITS World ETF.
“As the largest financial center in Eastern Europe and Central Asia, we are especially pleased to see the expansion of investment instruments on our stock market. ITS was the first company to receive a license from the AIFC Financial Services Regulatory Committee to operate a multilateral trading facility. We are delighted to witness new products becoming available to Kazakh investors, offering them opportunities to diversify and invest in the world’s largest companies,” said Bekturov.
ITS board member Roman Goryunov, who presented the project details at the event, noted that the introduction of the ITS World ETF is expected to increase trading volumes, enhance market liquidity and attract international interest in Kazakh securities. The fund’s diverse portfolio of securities from leading companies provides investors with a powerful tool for portfolio diversification.
ITS board member Roman Goryunov noted that introducing the ITS World ETF will likely increase trading volumes, improve market liquidity, and attract international interest in Kazakh securities. Photo credit: Nagima Abuova / The Astana Times
“ETFs have become one of the most transformative financial instruments, reshaping global markets, and now Kazakhstan is part of this $14 trillion industry. This development is crucial for issuers and investors and the entire financial infrastructure, including brokers and banks in Central Asia,” said Alexander Diakovsky, Managing Director with ITS, in an interview with The Astana Times.
Diakovsky added that Kazakhstan is making significant progress in building market infrastructure, including the multilateral trading facility (MTF), ITS Central Securities Depositary (CSD) and other essential components. “This infrastructure will enhance global liquidity and position Kazakhstan as an emerging market, attracting index providers and investors worldwide, benefiting Kazakh issuers and the government,” he said.
A product for all investors
Goryunov highlighted the significance of the new ETF for Kazakhstan’s financial market, emphasizing that the product provides a simple and affordable tool for investors. “With its balanced index and a low entry price, the ITS World ETF is accessible to a wide range of investors. It is suitable for intraday trading or long-term investment, allowing new investors to participate in the market and benefit from index growth,” said Goryunov.
The fund is managed by IPS Capital, licensed by the AIFC to oversee retail investment funds. It was developed to meet the global standards of exchange-traded products. With an annual management fee of 0.2%, the ETF is designed to be efficient and cost-effective for investors in Central Asia.
“ITSW is an investment tool accessible to all investors,” said Chingiz Kanapyanov, ITS CEO. Photo credit: Nagima Abuova / The Astana Times
“ITSW is an investment tool accessible to all investors. With just $10, investors gain exposure to a diversified portfolio that includes well-known companies from various sectors and regions. For beginners, it is an ideal entry point into Kazakhstan’s financial market,” said ITS CEO Chingiz Kanapyanov during the official launching ceremony.
Additionally, Kanapyanov shared with The Astana Times that the next step is launching a Sharia-compliant ETF, fully aligned with international Islamic finance standards, to meet diverse investor needs and encourage broader participation.
Designed to fit Central Asia’s time zone and investment needs
Diakovsky noted that the fund’s design offers flexibility to investors across time zones, with trading hours extending from 10:00 to 03:45 Astana time. The ETF also enables swift market responses, as investors have the flexibility to react to market developments in Kazakhstan as well as across Asian, European and U.S. markets.
“Our goal is to provide liquidity and make international diversification accessible to Central Asian investors in a convenient way. The setup of ITSW is suitable for both experienced investors and those entering the market for the first time,” said Diakovsky.
The ETF’s availability on the ITS trading platform allows investors to access the fund through any broker connected to the exchange, simplifying the investment process for both retail and institutional investors in the region.
Outreach for Central Asian investors
“To encourage the adoption of the ETF, ITS plans to work with local brokers and banks to educate Central Asian investors on the benefits of index-based passive investing,” said Diakovsky.
“With over 100 million ETF investors globally, we aim to help local investors understand the appeal of passive, index-based investing and the security and potential returns it offers,” he added.