The Banca Transilvania Group listed the open-end investment fund BT Index România ETF BET-TR (BVB: BTBETRETF) on Thursday, April 23. The ETF passively replicates the structure of the BET-TR index, which includes the performance of the 20 most liquid Romanian shares, including through the incorporation of dividends.
Banca Transilvania Group received authorization for this fund from the Financial Supervisory Authority (ASF) last month.
“Romania has courage, resources and growing companies. BT România ETF is the story of a fund born from the belief that the country’s potential can be turned into an opportunity by those who see the direction and want to be part of it,” said Ömer Tetik, CEO of Banca Transilvania.
The liquidity for the units of the BT România ETF fund is ensured by BT Capital Partners, which is the Liquidity Provider (Market Maker) and Authorized Participant. BT Capital Partners is the largest intermediary on the Romanian capital market in terms of trading volumes in shares and bonds listed on the BVB.
The main issue with ETFs is fees, which dilute the value of shareholdings. If done through the bank’s app BT Trade, the fees associated with the ETF are of 0.25% for buying and selling. The ETF also has a monthly fee of 0.084%.
The Romanian ETF market has become more dynamic in the last 2 years and has approached the RON 1 billion benchmark. The most important instrument in this segment is the fund that replicates the composition of the BET index managed by SSIF TradeVille and Patria Asset Management (BVB: TVBETETF). Last spring, BRK Financial Group from Cluj-Napoca also promoted an ETF-type fund that replicates the structure of the same BET index (BVB: BKBETETF).
The fund listed by the Banca Transilvania Group is not the first of the total return type. In the spring of 2024, InterCapital Asset Management listed a fund that tracks the BET-TRN index (BVB: ICBETNETF). The company also launched ETFs that replicate international indices, including those from Slovenia and Croatia, as well as one tracking Romanian government bonds.
The domestic market is also tracked by the fund that follows the performance of the energy index BET-NG of TradeVille (PTENGETF), as well as by the ETF launched last spring by the Cluj-based Globinvest that replicates the structure of the BET-EF index, which incorporates the most important dividend-paying companies in the energy and financial sectors.
(Photo source: press release)
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