The new fund providing investors with a one-step access to the 25 most liquid and largest capitalized companies
In cooperation with the Budapest Stock Exchange and with the support of UniCredit Bank Hungary GSS as custodian, OTP Fund Management launched a new investment fund named OTP CETOP ETF on 8 April 2024.
The new fund will provide investors with a one-step access to the 25 most liquid and largest capitalized companies on seven regional stock exchanges (Czech, Croatian, Hungarian, Polish, Romanian, Slovak and Slovenian). Based on the CETOP NTR index, the fund is currently dominated by Poland, with almost 40% of its holdings in Warsaw stocks, 24% in Czech stocks, just under 20% in Hungarian stocks, 12-13% in Romanian stocks and one each in Slovenian and Croatian stocks. The fund operates as an open-ended, exchange-traded, public equity fund, employing a passive investment strategy aimed at closely tracking its benchmark index.
The newly launched CETOP ETF presents an exciting and unique investment opportunity in the CEE region. Unlike existing ETFs that focus on one, two, or up to three exchange-traded stocks, the CETOP ETF offers extensive market coverage across the region.
Private and institutional investors from Western Europe, overseas, and the Far East often encounter challenges accessing local markets in the CEE region due to their small size or remote and exotic nature. The OTP CETOP ETF has the potential to address this issue by providing investors with a straightforward way to invest in key stocks of the CEE region without having to navigate the intricacies of local market specifics.
