Surpassing global markets: dollar-denominated ITS World index, which includes Kazakhstani stocks, gains 30% in under a year since its launch
The ITSW Exchange-Traded Fund (ETF), linked to the performance of the flagship ITS World Index, has delivered a 30% dollar return in less than a year since its launch, outperforming many global market benchmarks.
The introduction of the ITS World Index ETF became possible due to the favourable conditions and regulations established in the AIFC jurisdiction: investment returns from ITSW are exempt from taxes. Additionally, ITSW shares are denominated in U.S. dollars, making them an attractive option for those seeking currency-based returns without settling for low deposit rates.
The ITS World Index includes 50 international stocks from companies around the world, including Kazakhstan's leading fintech company Kaspi.kz and the national oil and gas giant KazMunayGas. The index is regularly rebalanced by ITS.
Thanks to its thoughtful diversification across sectors and regions, as well as regular rebalancing, the ITS World Index has achieved a 25% dollar return since the start of the year, and nearly 30% since ITSW began trading in November 2024.
For comparison, the global MSCI World Index of developed markets has risen by 17% this year, while NASDAQ – one of the key indexes tracking the performance of the tech sector – has gained 19%, and the UK’s FTSE100 is up 16%.
Investing in the ITS World Index’s returns is accessible to all ITS market participants due to the low entry threshold: investors can purchase ITSW shares from brokers connected to ITS for approximately $15 per share.
By buying shares in the fund, investors gain exposure to a carefully curated portfolio of securities from the world’s largest companies – leaders in their sectors and regions. Building such a portfolio independently would cost tens of thousands of dollars.
“Creating such a portfolio requires deep market knowledge, analysis and constant monitoring. ITSW is managed by algorithms, not fund managers. This, of course, makes it significantly more affordable for investors and, most importantly, makes trading as easy as clicking a button to buy or sell,” said Alexander Diakovsky, Managing Director of ITS.
The management of ITSW is carried out by IPS Capital, which holds an AIFC license for managing retail investor funds. ITSW shares are denominated in USD. Trading on ITS takes place from 10:00 AM to 3:45 AM the following day, Astana time. From the first day of trading, liquidity for ITSW ETF shares has been supported by market makers throughout the trading session. The management fee for ITSW ETF is set at 0.2% per year.
About ITS
ITS is an international liquidity hub. Central to ITS's business model are the principles of best execution and smart order routing technology. These principles enable investors to execute securities transactions at the best prices available on the global financial market, regardless of the transaction volume. This technology ensures that the liquidity for foreign securities on ITS matches that of leading international platforms where these securities are traded.
ITS Central Securities Depository Limited, the central depository for ITS, offers depository services for the storage and settlement of securities. The depository has received Qualified Intermediary with primary withholding responsibility (WQI) status from the U.S. Internal Revenue Service (IRS).
Operating a clearing house that acts as a central counterparty, ITS assumes the counterparty role for all obligations of clearing participants and manages the clearing process for transactions on the ITS trading platform.
ITS also calculates its own indexes: the ITS World index (ITSW) and the ITS Shariah index (ITSS).
Trading of the first ETF in Central Asia and the Caucasus, pegged to the performance of ITS's own index – ITS World (ticker: ITSW), began on ITS in November 2024, providing a wide range of investors with a convenient and balanced instrument for investing and trading with a low entry threshold. In January 2025, the ETF lineup expanded with the introduction of a fund based on the ITS Shariah Index.
ITS's direct clients include professional securities market participants from Kazakhstan and other countries, such as financial intermediaries who are accredited and directly registered at the AIFC. Investors, both private individuals and legal entities, access trading through these financial intermediaries, such as brokers and banks.
ITS Press Service