Table of Contents
Disclaimer: Activities in the Egypt market are conducted through Thndr Securities Brokerage, which is a member firm of the Egyptian Stock Exchange and is authorized and regulated by the Financial Regulatory Authority . Registered in Egypt (no. 804)
What is an ETF?
An ETF (Exchange Traded Fund) is a “basket” or group of securities such as stocks, bonds, or other assets bundled into a single tradable ticker.
On the Egyptian Exchange (EGX), there is currently one ETF available, which tracks the EGX30 index.
Why invest in an ETF?
Instead of buying many individual stocks, an ETF lets you invest in a group of companies at once.
This makes it easier to diversify your portfolio while still being able to buy and sell during market hours.
ETFs are traded on the stock exchange just like regular stocks, and their prices change throughout the trading day. This gives you flexibility and real-time access to market movements.
What types of ETFs are available in Egypt?
Globally, ETFs come in different types (like sector, commodity, or bond ETFs).
However, on the EGX today:
- There is currently one ETF
- It tracks the EGX30 index, which includes Egypt’s largest and most actively traded companies
How are ETFs managed?
ETFs are generally managed in two ways:
- Index-Tracking (Passive) ETFs: These follow a specific market index and aim to match its performance. The EGX30 ETF falls under this category, as it tracks the EGX30.
- Actively Managed ETFs: These are managed by fund managers who select investments.
How to invest in ETFs?
- Open the Thndr app
- Search for the EGX 30 ETF
- Tap on the EGX30 ETF
- Tap on “Buy”
- Enter the amount you want to invest
What is the difference between an ETF and a mutual fund?
An ETF combines diversification with the flexibility of trading like a stock throughout the day.
Mutual funds are usually bought and sold once per day through the fund manager, with pricing determined at the end of the trading session.
What are the benefits and risks of ETFs?
Benefits:
- Diversification: Exposure to multiple companies in one investment
- Flexibility: Buy or sell during market hours
- Transparency: You can typically see the ETF’s holdings
Risks:
- Market risk: Prices move with the market
- Tracking differences: The ETF may slightly differ from the index performance
- Liquidity risk: Since the EGX currently has one ETF, trading activity may be lower compared to larger global markets
