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What are Exchange Traded Funds (ETFs)?
ETFs are investment funds divided into equal units traded in the stock market during official trading periods similar to trading shares of companies. ETFs consist of a set of shares of listed companies on the capital market which are also trad-able, and these funds combine the characteristics of mutual funds and shares.
FALCOM Financial Services was the first to launch an ETF in the kingdom of Saudi Arabia. In 2010, the “FALCOM 30 Fund” was launched, followed by the launch of “FALCOM Petrochemicals Fund”, as an effort to diversify investment options for investors.
Components and their weights are known and easy to track
Bought and sold during the day, affordable investment for all investors
The cost of investing in ETF is generally lower than investing in mutual funds
ETFs are very liquid, Market Maker guarantees liquidity through out the trading session
Invest in different asset classes to reduce overall investment risk