Thndr Blog

Invest in the EGX30 ETF: Own Egypt’s Top Stocks in One Easy Trade

Ready to invest in the top 30 companies, in a single trade? This is possible on Thndr, with Egypt’s one and only EGX30 ETF. This fund, managed by the experts of Beltone, gives you a golden opportunity to invest in the 30 biggest companies in Egypt, all in one shot. If you’re looking for a hasslefree, cost effective way to diversify your portfolio, this is the investment you’ve been waiting for.  Let’s take a closer look at elements 

 What is the EGX30 ETF?

The EGX30 ETF is your one stop shop to invest in Egypt’s top 30 companies. These companies come from a range of industries—think banking, telecoms, real estate, and more! The ETF is designed to mirror the performance of the EGX30 index, so buying into it means you’re owning a slice of these major companies, all in one swoop.

But before we go any further let’s take a step back and explain, what is an ETF – if you already know this bit, you can skip over to how it’s different from our existing index mutual funds. 

What is an ETF?

An ETF is like a sample platter of investments. Instead of buying individual stocks, you’re buying a basket of assets that tracks a specific index, like the EGX30. ETFs trade on stock exchanges, so you can buy and sell them throughout the day just like a regular stock. It’s a straightforward and efficient way to diversify your portfolio with one click!

 How is it Different from a Mutual Fund?

Here’s a quick breakdown of the differences:

  • Trade Anytime: Unlike mutual funds that trade on certain days, the EGX30 ETF trades like a stock, so you can buy and sell whenever the market’s open.
  • Lower Fees: ETFs, like the EGX30 ETF, are typically cheaper to manage because they track an index, not a fund manager’s decisions, which means you pay lower fees.

The perks of the EGX30 ETF: 

A few things make the EGX30 ETF standout among your investment options: 

  • First of Its Kind: It’s Egypt’s only ETF, giving you the first ever chance to invest in a diversified portfolio of the country’s biggest companies, right here on Thndr!
  •  Managed by Beltone: One of Egypt’s top asset managers, Beltone is behind the wheel, so you know your money is in expert hands.
  •  Easy Diversification: With one click, you get exposure to 30 different companies across multiple industries—an easy way to lower your investment risk.
  •  Low Cost Investing: Because it’s passively managed, the EGX30 ETF comes with lower fees than most actively managed mutual funds. That means more money in your pocket!

Who is the EGX30 ETF Most Suitable For?

The long-term investor: Whether you’re a new investors, or have been in the market for a while, as long as you’re looking for a long-term gains, then this is for you. The nature of this product, and the information we provide below on it’s risks & benefits, explains how this best suited for someone who is looking to reap rewards in the future. 

What Are the Risks with the EGX30 ETF?

Of course, no investment is without its risks. Here are a few things to keep in mind:

  •  Liquidity Risk: It’s important to be aware of liquidity risk. ETFs can sometimes be harder to trade than individual stocks. This is because ETFs rely on the liquidity of the underlying stocks they hold. If there’s low trading activity in those stocks or fewer buyers and sellers of the ETF itself, it might take longer to buy or sell your shares at the price you want. For this reason, this ETF may be better suited for a 
  • Market Fluctuations: Since the EGX30 ETF tracks Egypt’s top 30 companies, if these businesses face tough times, your investment will feel the impact too.
  •  Industry Focus: With a concentrated focus on Egypt’s largest companies, if certain sectors struggle (think banking or real estate), it could affect the performance of your investment.

 What Are the Costs of the EGX30 ETF?

Costs always matter to our users! Here’s what you should expect:

  • Management Fees: Good news—because it’s passively managed, the EGX30 ETF has lower fees compared to mutual funds, saving you money over the long term.
  • Thndr Fees: Just like any stock, buying and selling the EGX30 ETF comes Thndr’s regular transaction fee of EGP 2 + 0.1% on every buy and sell order.

I’m ready! How do I  Invest in EGX30 ETF on Thndr? 

The EGX30 ETF is a convenient  way to invest in Egypt’s top 30 companies, with the flexibility of stock trading and the cost efficiency of an ETF. As Egypt’s only ETF, it’s an exclusive opportunity for investors to get exposure to 30 major companies across different industries, all managed by the trusted experts at Beltone. Whether you’re a newbie looking to start investing, or a seasoned pro looking for more diversification, the EGX30 ETF is the smart, affordable choice. Ready to take the leap? Get started today on Thndr!

About Beltone: The Asset Manager behind the EGX30 ETF

Beltone Asset Management, a subsidiary of Beltone Financial Holding, is a leading asset manager in Egypt, with Egp 26 Bn in assets under management as of Sept 2024. The company has a long track record of managing assets for high-net-worth individuals, corporations, private banks, and government institutions.