The Abu Dhabi Securities Exchange (ADX) has unveiled the UAE’s first luxury-focused Exchange Traded Fund (ETF), the Boreas S&P Absolute Luxury UCITS ETF. This groundbreaking listing brings exposure to high-growth luxury brands such as LVMH, Ferrari, and Hèrmes. As ADX continues to expand its innovative investment offerings, this new ETF provides a unique opportunity for investors to tap into the lucrative global luxury market.
A First for the UAE: Boreas Luxury ETF
The Boreas S&P Absolute Luxury UCITS ETF, developed by Abu Dhabi-based Lunate, is the 21st ETF listed on ADX. Unlike a traditional IPO, the ETF was introduced through an Initial Offering Period (IOP), where investors subscribed to fund units, with allocations determined by market demand. This ETF targets structural growth drivers such as rising global wealth and increasing demand for premium goods, making it a strategic addition to any investment portfolio.
What’s Inside the Luxury ETF?
The ETF is designed to track the S&P Europe Luxury 35/20 Capped Index, which represents a total market capitalization of AED 5.2 trillion. Its holdings include renowned luxury brands across various sectors, from fashion to hospitality. Key companies in the ETF include LVMH, Richemont, Ferrari, and L’Oréal, offering a diverse mix of assets ranging from high-end fashion to automotive and jewelry.
Why the Luxury Market Matters
According to Sherif Salem, Partner & Head of Public Markets at Lunate, the Boreas S&P Absolute Luxury UCITS ETF is designed to capture long-term growth potential supported by global megatrends. The luxury sector, benefiting from rising global wealth, is expected to see growing demand from emerging consumer categories. This ETF enables investors to tap into this growth while diversifying their portfolios.
ADX’s Expanding ETF Market
With 21 ETFs now listed and an increasing range of products, ADX continues to establish itself as the leading ETF market in the region. The market’s capitalization reached AED 33 billion ($9 billion) at the end of 2025, reflecting a nearly 40-fold increase from the previous year. This growth highlights ADX’s ongoing commitment to providing investors with diverse, high-value opportunities in a range of sectors, including luxury.
The launch of the Boreas S&P Absolute Luxury UCITS ETF marks a significant step forward for the UAE’s investment landscape. By offering exposure to the thriving luxury industry, ADX is providing investors with a chance to capitalize on global wealth trends and premium goods demand. As part of the broader shift towards a knowledge-driven economy, ADX’s expansion of its ETF market further solidifies its position as a key player in the region’s financial future.
