On August 12, 2010 RTS Standard market launched trading in a new instrument – an exchange-traded fund of an open-end mutual index fund "Troika Dialog - RTS Standard Index" under the management of the asset management company "Troika Dialog". The fund units are trading under the ticker RSTR.
The fund replicates the RTS Standard Index, providing analogous reward-to-risk ratio of both the instrument and the underlying index. The idea behind the instrument is to give investors an opportunity to buy a whole portfolio of stocks that represent the RTS Standard Index as a single security – a fund unit. As a result, investments in fund units are very effective in terms of meeting investment goals in the shortest term possible while minimizing at the same time both risks and expenses of building a similar portfolio of securities. It is a very flexible liquid instrument that combines all advantages of a classic investment fund and stocks.
An open-end mutual index fund "Troika Dialog - RTS Standard Index" is an Exchange Traded Fund (ETF), whose units are traded on the exchange and can be bought and sold, like stocks, during an exchange trading session. The characteristics of ETFs and the growth of their popularity on stock exchanges all over the world suggest that the creation of a legal platform and infrastructure for trading ETFs in the Russian Federation will spark the market liquidity growth and will significantly widen the range of the financial instruments on the Russian market. The introduction of an index fund "Troika Dialog - RTS Standard Index" is the first move of the RTS Standard market in this direction.
