Saudi Arabian stocks (Aramco capped)
Saudi Arabian stocks: Saudi Aramco (the world's biggest oil company, capped at 20% of the fund), Al Rajhi Bank, STC, SABIC. Closely tied to oil prices and Saudi reform plans. The riyal is pegged to the US dollar, so currency-wise it behaves like USD for you.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Direct oil exposure via Aramco, the world's largest producer
- Riyal is pegged to USD: predictable currency
- Diversifies away from US/Europe with Middle East exposure
- Heavily tied to oil price: falls hard when oil drops
- Concentrated: Aramco and banks dominate
- Geopolitical risk (regional tensions, sanctions threats)
About this fund
Tracks MSCI Saudi Arabia Capped - Aramco is capped at 20% to prevent single-stock concentration. Heavy in financials and energy. The Saudi riyal is pegged to USD, so there is essentially no currency risk for a USD-base investor.
Available on Interactive Brokers
Low-cost access to Saudi Arabian stocks (Aramco capped) and 10,000+ funds worldwide.
Frequently asked questions
Is IKSA.L accumulating or distributing?
iShares MSCI Saudi Arabia Capped UCITS ETF (IKSA.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for IKSA.L?
IKSA.L has a total expense ratio (TER) of 0.50% per year. On a $10,000 holding that is roughly $50 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy IKSA.L on Interactive Brokers?
Yes. IKSA.L trades on LSE, USD and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does IKSA.L invest in?
iShares MSCI Saudi Arabia Capped UCITS ETF (IKSA.L) tracks the MSCI Saudi Arabia Capped. Saudi Arabian stocks: Saudi Aramco (the world's biggest oil company, capped at 20% of the fund), Al Rajhi Bank, STC, SABIC. You buy one fund and get the whole basket in a single trade.
Is IKSA.L a UCITS ETF, and where is it domiciled?
Yes, IKSA.L is a UCITS ETF domiciled in Ireland. For non-US investors, Irish-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is IKSA.L?
On the TickerCompare 1 to 5 scale, IKSA.L is rated higher risk (5/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.