Ukrainians are given more opportunities to invest
The admission of new ETFs means that Ukrainian securities traders will be able to offer clients a wider selection of international investment instruments. It is not just about the appearance of a few more funds, but about expanding access to global financial markets, which allows you to diversify savings and reduce risks.
All five funds submitted applications for admission PJSC "Altera Finance", which has a license of the National Securities Depository of Ukraine to carry out depository activities.
How the new ETFs will work in Ukraine
After admission, securities can be registered in the Ukrainian depository system and offered to investors in accordance with the legislation.
Although these ETFs are not yet entered into the system of the Central Securities Depository of Ukraine, they can already be stored through the account of the National Depository of Ukraine in the international depository and clearing system Clearstream Banking Luxembourg. This creates a technical basis for their further use by Ukrainian investors.
All five funds belong to the category UCITS ETFs is a European standard for investment funds with increased requirements for investor protection.
Such funds:
- diversify investments, without concentrating assets in one issuer;
- allow you to quickly buy and sell shares on the stock exchange;
- keep assets through an independent depository, which increases the level of investor protection.
The NCCPFR also noted that none of the issuers of these ETFs is under Ukrainian sanctions.
What is important to consider before investing
The Commission emphasizes that the admission of ETFs to the Ukrainian market does not represent a guarantee of profit. The value of the units depends on the situation on the global financial markets, the dynamics of the assets included in the fund, as well as on the commissions of the broker and the ETF itself.
In fact, an ETF is a ready-made investment portfolio that can contain stocks, bonds, precious metals or other assets. Buying one share allows the investor to simultaneously gain access to a large number of financial instruments.
A step towards integration with the European market
The expansion of the list of foreign ETFs admitted to circulation in Ukraine is part of the gradual integration of the Ukrainian capital market into the European financial infrastructure.
For Ukrainian investors, this means a greater choice of instruments for long-term investment, a higher level of diversification and the possibility of legally working with international funds through the Ukrainian financial system. This is the main practical value of the decision of the NCCPFR.