WSE attracts more and more ETF funds

Investors are increasingly inclined to passive investing, which, for example, imitates the movement of stock indices. Its advantages include lower management fees and greater portfolio diversification with fewer transactions. This causes the growing popularity of ETFs that are used for this type of investment. Last year, the value of assets accumulated in this type of instrument exceeded $10 trillion, according to the Warsaw Stock Exchange (WSE) after ETFGI. In Poland, this market is still small, but it is growing dynamically. There are already 11 ETFs based on various underlying instruments listed on the WSE.

"Investors' interest in passive investing, including investing through ETFs, is growing very quickly. It is already at a fairly decent level, although of course, we have a greater appetite. The environment of still very low interest rates, the search for effective investing at the lowest transaction cost means that in some markets, such as Israel, ETFs account for more than 30 percent of turnover," Dr. Marek Dietl, president of the board of the WSE, said.

"We still classically trade stocks or futures, these are the main products on our market, but there are more and more offers of semi-active, semi-passive management, i.e. creating ETF portfolios for the richest investors and changing their structure depending on the market situation," he added.

(Newseria)