2024 results

The year 2024 is now behind us. It was a challenging year, an intense year, but it was also a very, very successful year. Now that 2025 is here, it’s time to reflect on our achievements from last year.

Let’s clarify from the outset that we will be discussing the ITS World (ITSW) and ITS Shariah (ITSS) indexes, the development of which is central to our most ambitious plans for the near future. While both indexes were established in 2023, the first financial product based on them was created in 2024, the first ETF in Central Asia – based on the ITS World index – was launched on 7 November 2024. Since that moment, investors have been able to purchase shares in the fund, thus getting an opportunity to invest in the world’s largest companies – from New York to Tokyo, from Shanghai to London – with a minimum investment of just $10.

What did we achieve last year? Since shares in the ITS World ETF began trading only in early November, it would be pointless to draw conclusions after such a short period. However, the ITS World index itself delivered commendable performance in 2024, with results likely to satisfy even the most critical investors, growing by a very solid 18.9% in 2024. Keep in mind that this return is in US dollars. But that’s not all. As you know, many companies pay dividends. In accordance with the general rules for the ITSW index, dividends paid by individual companies are not distributed to investors but are instead reinvested, thereby increasing the index’s overall return. So, including net dividend income, the ITSW index’s total return for 2024 was an impressive 20.3%. You have to agree that a return of over 20.0% in US dollars is undoubtedly an exceptional result.

The ITSW index also performed well compared with leading US indices, which many investors treat as benchmarks. The ITSW index narrowly trailed the broad-market S&P 500 benchmark, which grew 23.31% for the year, but significantly outperformed the Dow Jones Industrial Average, which posted an annual return of just under 13.0% (+12.88%).

It’s worth noting that the top US companies led the way in 2024, driving the biggest gains in global stock indexes. However, American companies account for only 38.0% of the ITSW index, with the remainder coming from Europe and Asia. And that’s why ITSW’s excellent return for the year is evidence, first and foremost, of the strong geographic diversification of the securities that make up the underlying index. It’s no surprise that the top performers were leading American tech companies, with some seeing their stock price more than double over the year. Leading the way was Nvidia (NVDA), which saw its stock surge 171.2%, followed by the leader in music streaming, Spotify Technology (SPOT), whose stock rose 138.4%, and another semiconductor manufacturer, Broadcom (AVGO), which also posted an annual return of over 100.0%, at 107.9%.

The excellent performance for the year was mainly driven by tech companies, whose success largely offset setbacks in certain sectors (e.g., automotive, healthcare) and regions (notably China). While these challenges reduced the ITSW index’s overall return slightly, the impact was minimal. And it is conceivable that the ITSW index could benefit considerably from strong growth in healthcare companies, for example, or the broader Chinese market.

Also deserving of special attention is the 2024 performance of the ITS World index’s counterpart, the ITS Shariah (ITSS) index, whose holdings are Shariah-compliant companies. ITSS posted an annual return of 18.0%, and while its total return inclusive of dividends was under 20.0% (19.3%), it was only slightly below the ITSW index’s total return.

The ITSS index is particularly noteworthy for providing access to global stock markets for a vast number of investors in Central Asia and other regions around the world who adhere to Islamic norms and who can invest exclusively in assets that have been approved by Islamic spiritual authorities.

While 2024 saw the start of trading in an ETF based on the ITS World index, 2025 promises a new opportunity for Islamic investors with the launch of an ETF based on the ITS Shariah index, which is scheduled for early 2025. Let’s hope investors seize this opportunity with enthusiasm.

In summing up 2024, I would like to note that our family of ITS indexes is still in its infancy. That said, their results from last year indicate that both indexes – the ITS World (ITSW) global market index and the ITS Shariah (ITSS) Islamic index — are already robust, sustainable and competitive, with performance on par with, and in some cases exceeding, that of leading global indexes. Therefore, products based on these indexes (especially the corresponding ETFs) hold the potential to provide stable returns for a wide range of investors in line with the best current benchmarks for foreign-currency returns.