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Romanian, Croatian partners launch ETF based on BVB blue-chips index BET-TRN
Investimental, the newest broker on the Romanian capital market, and InterCapital Asset Management, the largest independent asset manager in Croatia with assets under management of EUR 420 million, announced the signing of an agreement to launch a new Exchange Traded Fund (ETF) on the Bucharest Stock Exchange.
The ETF, which is expected to be launched at the beginning of next year, will track the performance of the BET-TRN index, which includes the 20 Romanian blue-chip companies such as Banca Transilvania, Hideroelectrica, OMV Petrom or Romgaz, to mention a few.
The BET-TRN stands for "Total Return Net", indicating that the index reflects not only the price movements of the blue chips but also assumes that the net dividends are reinvested.
The InterCapital BET-TRN UCITS ETF, which is expected to start trading on the Bucharest Stock Exchange in the first quarter of 2024, will represent an important instrument on the local capital market, offering investors diversification across the 20 most liquid Romanian companies included in the BET, including both defensive stocks as well as dynamic local entrepreneurial companies.
Consequently, investors will be able to gain exposure to the local market by investing even small amounts that normally would not permit them to build a diversified investment portfolio.