Exchange traded funds (ETF) can offer investors a highly liquid low-cost exposure to global markets, including the GCC exchanges.

That was the message to 50 leading financiers who attended a seminar at the Sheraton Hotel on the benefit of investing in these products.

ETFs are index funds covering equities, fixed income products as well as emerging markets, property and alternatives and the organisers of the event, iShares, is a leading global firm in this market, offering more than 350 products listed on major exchanges.

'ETFs offer a diversification of risk and offer investors low cost access to new investment opportunities across the world,' said iShares-Europe Barclays Global Investors managing director and head of sales Nizan Hamid.

'They offer a range of exposure and we have seen increasing use of ETFs because we have seen a weaker performance in other asset classes,' he said.

'They are highly liquid products, do not suffer from the discount suffered by vehicles like investment trusts and are highly liquid as our products are traded in more than 20 different markets.'

iShares launched the first ETF product with underlying assets in the GCC region excluding Saudi Arabia.

'The fund, the IGCC, provides a transparent tool for investors looking to geographically diversify their asset allocation,' said Hamid.

'The IGCC seeks to track the MSCI GCC countries ex-Saudi Arabia index, providing the fund with a reputable and proven benchmark while ensuring that there is adequate diversification in the fund.

'The fund is a vote of confidence in the region and its infrastructure, as the assets that make up this product are pillars of the GCC countries' economies,' he added.

'Additionally, the IGCC ETF provides pan GCC ex-Saudi Arabia exposure for international investors in one simple trade. As other avenues for investment in the region slow down, IGCC is a new structured tool for investors to invest in the region.

'The product, unlike most perceptions of investment in the region, is not an oil fund and is primarily focused on the services and banking sectors.'-TradeArabia News Service