Invesco MSCI Saudi Arabia UCITS ETF

The Invesco MSCI Saudi Arabia UCITS ETF is an equity exchange-traded fund designed to track the performance of the MSCI Saudi Arabia 20/35 Capped Index, reflecting the broader Saudi Arabian equity market. Its investment approach is passive, aiming to replicate the returns of its benchmark through a synthetic replication strategy using swaps, rather than holding the underlying securities directly. This ETF primarily focuses on large- and mid-cap companies listed in Saudi Arabia, capturing about 85% of the Saudi equity market by market capitalization, with additional capping to ensure diversification: no single company can exceed a 35% index weight, and all other constituents are capped at 20%. Key sectors represented in the fund include financials, energy, and materials, mirroring the structure of the Saudi economy and stock market. The ETF features accumulating dividends, meaning all income from holdings is reinvested rather than distributed to investors, which can benefit long-term compounding. Managed by Invesco and domiciled in Ireland, it offers exposure to the Middle East’s largest equity market and serves as a vehicle for investors seeking geographic and sector diversification outside developed markets, particularly into the dynamic Saudi economy. Its total expense ratio is 0.50% annually and the fund’s assets under management are approximately 39-41 million euros as of late 2025.