Russian stock market news – availability of stocks included in the S & P 500
The management company Alfa-Capital opens an exchange fund for investing in the S & P 500 index. At the end of January 2019, the company entered into the agreement with the index provider. It is known that the license is valid in the Russian Federation for three years. The contract has the possibility of extending the relationship between the Russian and American partners, and takes into account the risks. On the asset of the fund now, there is no complete information. The management of the Alfa Capital Asset Management says that it can be all 500 corporations from the index. Recall that the S & P 500 includes five hundred US joint-stock companies. The index is traded traditionally on the main markets of North America: the New York Stock Exchange and the NASDAQ. The index value determines the capitalization of companies, and the place in the list is determined on the basis of free-float. This is not to say that the S & P 500 is simply a list of the largest joint-stock companies. This does not include organizations with insufficient liquidity stocks. The index as fully as possible reflects all areas of the state economy.
Russian stock market news: S & P, presented by Management Company Alfa Capital – stock exchange mutual fund
The company “Alpha Capital” calls the new product an index fund with shares on the exchange (ETF). The ETF structure is a kind of copy of the portfolio of securities underlying the index. Consequently, the investor does not buy selected stocks, but invests simultaneously in all index companies, which, as noted above, are 500. According to other estimates, the emergence of S & P on the market is a stock exchange mutual fund. Clients of the management company “Alfa-Capital” will be able to accumulate funds in order to receive a share in joint-stock firms belonging to S & P 500.
Similar SBMX, which is managed by Sberbank, has unacceptable commissions: the management company takes 0.8% in remuneration, and the depositary – 0.19%. The offer from Alfa Capital will find its audience among individuals and legal entities that do not want or cannot open brokerage accounts abroad, and for whom the important advantage is working with domestic brokers. Moreover, in this case, you can purchase shares of US companies in the same basket with Russian. Also, access to the securities of American and European companies can be obtained without leaving the capital through investments in FinEx and ITI Funds. Both funds are traded on the Moscow Stock Exchange.