The investment bank Falcom Financial Services (Riyadh) is setting up an open-ended Exchange Traded Fund (ETF) to invest in the shares of all the Shariah-compliant petrochemical companies listed on Tadawul, the Saudi Stock Exchange. The ETF will be a tracker fund that invests passively in the shares of individual companies in proportion to their weighting by free-float market capitalization in the benchmark index, the FSPI Falcom Saudi Petrochemical Index. The ETF will be listed and traded on the Tadawul from Saturday, July 10, 2010. Its initial value will be SR25 million ($6.7 million) and units will be created and redeemed in multiples of 25,000 shares, with an initial value of SR 500,000, according to demand.
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