KSA

iShares MSCI Saudi Arabia ETF (KSA) is an exchange-traded fund that seeks to track the performance of an index composed of companies listed in Saudi Arabia. The ETF is managed by BlackRock through its iShares platform and trades under the ticker KSA on NYSE Arca.

Classified as an international single-country equity ETF, KSA aims to reflect, before fees and expenses, the performance of equities representative of the Saudi Arabian economy. KSA tracks the MSCI Saudi Arabia IMI 25/50 Index, which includes Saudi companies meeting eligibility criteria related to size, liquidity, and investability.

Constituents are weighted based on free-float-adjusted market capitalization, subject to 25/50 concentration limits defined by the index methodology. The index undergoes periodic reviews, including additions, removals, and rebalancing, which are reflected in the ETF’s holdings.

Diversification and sector exposure

KSA provides focused exposure to the Saudi equity market, with diversification across key sectors of the local economy, including:

• Financials.
• Energy.
• Materials.
• Consumer discretionary.
• Consumer staples.
• Healthcare.
• Telecommunications.
• Industrials.

The portfolio reflects the economic structure of Saudi Arabia, with significant representation from energy and financial companies.

Structure and costs

KSA shares trade on the secondary market on NYSE Arca throughout regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. KSA distributes dividends derived from its underlying holdings in accordance with its distribution policy.

History and evolution of the ETF

iShares MSCI Saudi Arabia ETF was launched in 2015 during a period of increasing openness of Saudi Arabia’s financial markets to international capital.

Since inception, the ETF has reflected structural changes in the country’s economy, including reforms associated with Vision 2030 and broader integration into global equity indices.

In recent years, KSA has reflected movements linked to global volatility, fluctuations in oil prices, and the ongoing development of the Saudi equity market.