Flash Report /
Bangladesh

Bangladesh Stock Market: DSE to get the first ETF tracking DS30

  • Bangladesh’s first ETF is expected to be launched in September 2022

  • This ETF will track DS30 – a free-float market cap weighted index composed of 30 Blue-chip shares

  • The minimum size of the ETF will be BDT 500mn (USD 5.5mn). A proposal of forming BDT 1.0bn ETF has been submitted

Shopnil Paul
Shopnil Paul

Research Associate

Tanay Kumar Roy
Tanay Kumar Roy

Research Analyst

IDLC Securities
2 June 2022
Published by

Bangladesh’s first ETF is expected to be launched in September 2022, said the DSE Managing Director. Here are some details of it.

  • This ETF will track DS30 – a free-float market cap weighted index composed of 30 Blue-chip shares. Find the list here.

  • On both free-float adjusted market cap and total market cap basis, they represent c52% of the DSEX (prime index).

  • DS30 is rebalanced semi-annually. A company must have a float-adjusted market capitalization above BDT 500mn (USD 5.5mn) and must have a minimum three-month average daily value traded of BDT 5.0mn to be in the DS30 index.

  • Three asset management companies - LankaBangla Asset Management, Shanta Asset Management, and Green Delta Dragon Asset Management have submitted proposals to introduce ETF.

  • The minimum size of the ETF will be BDT 500mn (USD 5.5mn) and the major portion of the fund will be raised from the general investors and private placement.

  • We have been informed that a proposal of forming BDT 1.0bn (USD 11mn) ETF has been submitted by one of the asset management companies.