East African nation Kenya will become the latest developing market to introduce its first ETFs.
Kenya’s financial market regulator on Monday unveiled plans to launch ETFs “to improve liquidity and eventually diversify the capital markets,” Xinhua News reports.
“ETFs will also make it easy to invest in a targeted portfolio of common stocks and bonds by investors purchasing just a single security,” said Paul Muthaura, chief executive of the Capital Markets Authority, in the story. “Ultimately, individual investors would have access to segments of the market that were previously inaccessible.”
The Nairobi Securities Exchange will begin offering ETFs, although no timeframe was given for the launch, according to Bloomberg News.
The funds will be offered “in an effort to increase the scope of capital market products available in Kenya,” the Capital Markets Authority said.
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