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VTB Capital launches European equities ETF on Moscow exchange

Tips European equities over US

Theo Andrew

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Russian investment bank VTB Capital Investment has launched an active European equity ETF investing in some of the continent’s largest stocks.

The VTB European Equity Fund (VTBL) is listed on the Moscow Exchange with a total expense ratio (TER) of 0.89%.

Targeting retail investors, the bank said the ETF offers exposure to a diversified portfolio of shares for a minimal investment of €10 and is available to purchase through its mobile app at 0% commission for share purchase and sale transactions.

Vladimir Potapov, CEO of VTB Capital Investments, said: “Diversification is now becoming increasingly important for retail investors, we are looking to develop our line of funds based on demand and are constantly adding new relevant opportunities.

“VTBL is a quality tool for passive investors who want to invest in shares of European companies and receive potential income in euros. It allows investors to diversify their portfolio even with small amounts of investments.”

It added Europe stocks look “much more attractive” than US stocks at the moment with the Euro STOXX 50 index priced lower than the S&P 500 at a price to earnings multiple of 14.2x versus 18.9x over the next two years, respectively.

Furthermore, it expects the European Central Bank’s more dovish tone on tightening compared to the Federal Reserve will also work in the continent’s favour.

Vadim Bit-Avragim, fund manager of the ETF, said: “In Europe, stimulus volumes were launched later at the end of 2020, they are smaller in volume but extended in time, this will allow you to feel the effect of the measures taken in 2022.

“This will lead to higher consumption growth rates in Europe, which will also be supported by the growth of tourist flow to Europe in 2022.”

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