2020 to be record year for WSE ETFs

Passive investing is gaining more and more supporters on the Warsaw Stock Exchange (WSE). For ETFs listed on the Warsaw Stock Exchange, 2020 was a record year. The total value of trading on these instruments in 2020 was PLN 768.2 million – almost 3.5 times more than in 2019. However, the number of transactions concluded – 118,000 – last year was not much smaller than the sum of transactions from the previous 10 years.

The Nasdaq-100 index ETF has been listed on the WSE since February 2021. 

“It is the first Polish investment fund of this type that replicates a foreign index. The Nasdaq-100 index brings together the 100 largest US technology companies listed on the Nasdaq stock exchange in the US. A novelty in this instrument is the built-in hedging of the exchange rate risk. This means that if the exchange rate of the zloty against the US dollar changes, it will not affect the value of the investment,” Izabela Olszewska, a member of the WSE Management Board, said.

There are currently eight ETFs listed on the WSE, and the WSE expects to expand the offer of these instruments in the coming year. 

“ETF units are traded like stocks – they can be bought and sold on the Warsaw Stock Exchange. Trading in these instruments is supported by a market maker. ETFs precisely replicate changes in the index on which they are based – which is why investing through ETFs is called passive investing,” Izabela Olszewska explained.

(WBJ)