Exchange Traded Funds

An exchange traded fund (ETF) is an investment vehicle that congregates key features of traditional mutual funds and individual stocks. ETFs represent a variety of securities that track specific indexes, like index mutual funds. However, ETFs can be traded on the same trading day.

Advantages

Buy & Sell With Ease
ETFs can be traded through any broker with access to the Borsa Istanbul. Retail investors can buy and sell ETFs via internet banking, telephone banking etc.
 
Operational Efficiency
Investors can trade ETFs with a single transaction through any brokerage house. 
 
Diversification
ETFs are also investment instruments which can provide instant exposure to a wide range of securities. Investors can diversify by choosing an index ETF, rather than taking concentrated risks by purchasing individual securities.
 
Narrow Spreads
ETFs reduce costs and can be traded with a narrow spread.
 
Cost Efficient
Management fees are lower for exchange traded funds.
 
Continuous Monitoring
ETFs are priced based on their Net Asset Value; investors can follow price movements continuously during trading hours.
 
Transparency
ETFs’ holdings are published on a daily basis. It is easy for investors to see what they own.
 
 
The Exchange Traded Fund (ETF) project was initiated by Finansportfoy in 2003 in response to a number of factors:
  • • Turkey required new investment tools to increase diversity for its investors.
  • • Extensive market analysis undertaken by Finansportfoy indicated that ETFs would meet many of the markets needs.
  • • Finansportfoy partnered with other globally recognised institutions to deliver a world class product.
 
In 2005 Finansportfoy launched Turkey’s first ETF Dow Jones Istanbul 20 Type A Exchange Traded Fund (DJIST).
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