By the end of 2024, brokerage and trade houses will be able to trade ETFs and ETCs on the Warsaw Stock Exchange free of charge. The abolition of fees for Members of the Exchange could translate into the amount of commission paid by individual customers. The new promotion is part of the growing popularity of passive products listed on WSE and may contribute to increased interest in ETF-type instruments as part of long-term investment through IKE and IKZE.
The tariff of exchange fees charged for trading in ETFs (Exchange Traded Funds) and ETCs (Exchange Traded Commodities) has been reduced to zero and applies to Exchange Members until the end of 2024. WSE is working on a broader zero-fee program for ETFs dedicated to 2025, aiming to attract new individual investors to the Warsaw trading floor. In 2025, particular emphasis will be placed on education and expanding the range of products based on domestic indexes of small and medium-sized companies mWIG40 and sWIG80. This should contribute to improving liquidity in the segment of small and mid-sized companies, which in turn may affect their valuation and access to capital for development.
Passive products on WSE represent an attractive option for investors seeking low-cost, transparent and flexible tools for building a diversified portfolio.
“The introduction of zero fees for Exchange Members on ETF funds is a step aimed at increasing their availability and supporting the development of long-term investments in Poland. We want investors to be able to build diversified portfolios freely without additional transaction costs, making investing on WSE more attractive and accessible to a wider audience.” – says Michał Kobza, a member of the Warsaw Stock Exchange Board.
Since 2020, we have been observing a dynamic increase in ETF fund turnover on WSE. This year, turnover has already exceeded PLN 1.16 billion and broke last year’s record of PLN 1.12 billion. August turned out to be a record month in the history of ETFs listed on the Warsaw Stock Exchange, with turnover reaching PLN 167 million.
Passive ETFs and ETCs on WSE allow the creation of long-term strategies on Polish stocks – WIG20, mWIG40, sWIG80, international stocks – S&P 500, DAX, Nasdaq, and bonds – TBSP index, GPWB-BWZ (floating rate treasury bond index, with a maturity exceeding 6 months).
The turn of year 2024 is nearing, but we can already say that the trends remain very positive for this market segment. The increase in ETFs trading volumes reflect the global trend of growing popularity of ETFs, which already account for about 20% of assets on world markets.
The Warsaw Stock Exchange plans to further enrich the range of ETFs in terms of both the number of funds and the diversity of assets. The expansion of the offer with new products responds to the increasing market and investor demand for more complex investment instruments.
“We are in talks with potential issuers, both from Poland and abroad, which will allow for the gradual development of our offer. The Exchange is also actively working on enabling Polish investors to access foreign ETFs through the GlobalConnect platform. This is an important step towards further globalization of our offer, which will provide investors with the opportunity to use funds listed on the world’s largest exchanges.” – emphasizes Grzegorz Kołodziejczyk, Director of WSE Market Development department.
ETFs listed on the Warsaw Stock Exchange can be a component of a portfolio on IKE and IKZE accounts by investing in them through a brokerage account linked to these accounts. Many brokerage houses offer the possibility of running IKE and IKZE in the form of an investment account, on which various financial instruments can be purchased, including ETFs listed on WSE.
Quoting ETFs in the domestic currency, the Polish zloty, has many advantages for Polish investors: lower transaction costs, easier access through a regular brokerage account, simpler tax settlement and access to real-time quotes. This makes investing in ETFs more approachable and efficient, allowing investors to make better use of tax reliefs offered by IKE and IKZE accounts. By investing in ETFs within these accounts, investors can effectively build retirement savings, diversifying their portfolio through exposure to various indices and sectors.
Source: https://managerplus.pl/gpw-znosi-oplaty-za-handel-etf-ami-do-konca-2024-krok-w-kierunku-popularyzacji-inwestycji-pasywnych-73405
