Advantages of BUX ETF and CETOP ETF

Cost efficiency

  • Low expense ratio - as a passive investment, the BUX ETF and CETOP ETF have lower operating expenses and lower management fees than an actively managed portfolio, resulting in a relatively low annual expense ratio.
  • ‎Low operational costs - since the ETF trades on an exchange and uses a special creation-redemption process it is insulated from the costs of buying and selling securities to accommodate shareholder purchases and redemptions.
  • Low trading costs - active market making at the stock exchange ensures spreads on the ETF are narrower than in illiquid markets, making it inexpensive to buy and sell.
  • Low turnover costs - because it is index-based, the ETF requires fewer portfolio changes, resulting in significantly lower transaction costs than actively managed portfolios.

Index tracking

  • ‎Transparency - to facilitate the BUX ETF's and CETOP ETF's unique creation-redemption process, the composition file for the given ETF creation unit is published daily. Since the ETFs's holdings are designed to reflect the performance of its underlying index, investors will essentially know the securities that are held in the given ETF and their weightings.
  • ‎Diversification - because the BUX ETF and CETOP ETF track the given index, it provides diversification across the equities in the index.

Exchange trading

  • Buying and selling flexibility - because it is exchange traded, the ETFs can be bought and sold at intraday market prices, purchased on margin, sold short, and - even on a downtick - traded using stop orders and limit orders.
  • ‎Continuous liquidity - trading of the BUX ETF and CETOP ETF is supported by continuous market making. The narrow spreads provided by the market maker ensure holders the opportunity to buy or sell the instrument at any time at low implicit trading costs.
  • All day tracking and trading - investors can track the given ETF price throughout the trading day and adjust portfolio holdings to capitalise on changes in the market.

Wide array of investment strategies

  • Equitising cash - temporary idle cash can also be put it to work in the ETF while determining where to invest for the longer term. Investors can maintain allocations or establish new allocation targets to a benchmark, investing and liquidating as needed to fulfil redemption requests. This can minimize cash drag or trading risk.
  • Managing cash flows - investment managers can take advantage of the ETFs' liquidity during periods of cash inflows and outflows.
  • Country exposure - with BUX ETF fund managers can achieve an exposure to the Hungarian market, with CETOP ETF to the CEE region with one single transaction.

 

Name of the fund 

 BUX ETF Fund

CETOP ETF Fund

Fund type

Open and, public, index tracking, exhange traded

Open and, public, index tracking, exhange traded

Benchmark

BUX Index

CETOP NTR Index

Place of registration

Hungary

Hungary

Listing

Budapest Stock Exchange

Budapest Stock Exchange

Date of listing

December 13, 2006

April 8, 2024

Fund manager

OTP Fund Management Pte. Ltd.

OTP Fund Management Pte. Ltd.

Market maker

OTP Bank Ltd.

OTP Bank Ltd.

Custodian

OTP Bank Ltd.

UniCredit Bank Hungary Zrt.

Base currency

HUF

EUR

Minimum trading size 

1 unit

1 unit

Unit size

HUF 25.000

EUR 10

Settlement

T+2

T+2

Indicative Net Asset Value

Published real time by Budapest Stock Exchange

Published real time by Budapest Stock Exchange

Management fee

50 bp

40 bp

Maximum market maker bid-ask spread

Mid price +/-0.5% or lower

Mid price +/-2.5% or lower