Outstanding first year performance by the equity fund comprising blue chips from the CEE region

Outstanding first year performance by the equity fund comprising blue chips from the CEE region

Since its launch in April last year, the OTP CETOP UCITS ETF has increased its net asset value thirty-sixfold¹. This exchange-traded, regionally focused investment fund combines the 25 most liquid and highest capitalized stocks from Central and Eastern Europe into a single investment instrument. Although a significant portion of its trading volume and assets is linked to institutional investors, its 10 euro nominal value has also made it particularly popular among retail investors. Since its market debut, the fund’s price has risen by over 25 percent¹.

By the end of April, the net asset value of the OTP CETOP UCITS ETF – which bundles the 25 most traded and highest capitalized stocks of Central and Eastern Europe – had grown thirty-sixfold¹ from its initial value of one million euros. Launched in early April 2024, this ETF has become the largest of its kind in Hungary’s asset management sector and ranks among the top thematic funds in the CEE region based on this momentum. Investors have had little reason to complain about returns: by April 30, the fund’s share price on the Budapest Stock Exchange had risen 25.4 percent² compared to its initial value. Over the same period, the narrower (STOXX 50) and broader (STOXX 600) indices of leading European blue chips delivered returns of only around 11 percent². With strong secondary market activity supporting the ETF’s success, its daily trading volume has been remarkable, averaging around HUF 65 million.

Due to its outstanding performace, the fund received a special award³ last year in Austria from XENIX and was also recognized as Product Innovation of the Year at the Budapest Stock Exchange’s BÉT Legek awards ceremony⁴. Although the initial wave following the launch, the instrument was primarily purchased by OTP Private Banking clients in Hungary, sales data show that institutional investors soon appeared on the buy side. The fund’s popularity has been greatly enhanced by its content: the OTP CETOP UCITS ETF aggregates Central and Eastern Europe’s blue chips, which investors expect to deliver dynamic growth.

„The results of the first year demonstrate that we have created a gap-filling opportunity with the OTP CETOP UCITS ETF. Leveraging our unique regional expertise, we have opened a gateway to Central and Eastern European markets for international investors. This was an important step in our journey to becoming the region’s top investment service provider. We hope to attract even more foreign institutional investors in the future, as this structure offers easy access to a region with significant revaluation potential,” noted Attila Bánfi, Managing Director of OTP Global Markets.

This could especially benefit institutional clients who have so far been unable to access CEE capital markets due to legal or accounting constraints, as the OTP CETOP UCITS ETF is now also available in the form of futures instruments. „We developed the product from the outset as the first in a family of products and are now preparing the CETOP Futures based on the insights and investor feedback gathered,” added Attila Bánfi. This allows clients seeking regional exposure through derivatives – without direct capital investment – to also enter the regional market.

The managing director emphasized: „Compared to developed and emerging markets, Central and Eastern European markets are currently so undervalued⁵ that if capital wants to flow in quickly, there is no simpler solution than derivatives.” In his view, this is why the futures instrument may soon become highly sought-after, potentially bringing additional momentum to trading in the OTP CETOP UCITS ETF as well.

¹Source: April 30, 2025 - BAMOSZ
²Source: Blomberg
³Source: XENIX
⁴Source: BET
⁵Source: OTP Bank’s latest investment strategy