Other ETFs with significant Qatar exposure are also trading sharply higher Tuesday. For example, the Market Vectors Gulf States Index ETF (NYSEArca: MES) is up 3% while the WisdomTree Middle East Dividend Fund (NasdaqGM: GULF) is higher by 1.5%.
MES and GULF have weights to Qatar of 24.8% and 32.1%, respectively. Neither GULF nor MES track an MSCI index, meaning the two ETFs are unlikely to be significantly affected by Qatar and UAE moving to the MSCI Emerging Markets Index. [Investors Flocking to Qatar, UAE Lifts These ETFs]
UAE currently allows foreigners to have stakes of up to 49% in businesses located outside free zones, according to Reuters. However, in 2013 UAE’s Federal National Council rebuffed a plan that would have eased restrictions on foreign ownership of companies based in the second-largest Arab economy.
QAT Sector Weights
Chart Courtesy: iShares