The strong momentum carried over into 2025, as the SBITOP TR index surged by another 15.3% in January alone, far surpassing other major indices in euro terms. For comparison, the Stoxx Europe 600 gained 6.4%, the S&P 500 rose 2.1%, and both the Nasdaq 100 and BET-TR advanced by 1.6%. Following this rally, the SBITOP TR index now trades at slightly below 9x earnings, making it comparable to BET in terms of valuation but without the added challenges of political and fiscal uncertainty seen in Romania. By contrast, other major indices such as the Nasdaq (33x), S&P 500 (25x), and Stoxx Europe 600 (15x) remain significantly more expensive.
Over a longer horizon, the SBITOP TR index has demonstrated its resilience and competitive edge. Over the past 10 years ending January 31, 2025, the index achieved a total return CAGR of 15.8%, outperforming both the S&P 500 (14.6%) and the Stoxx Europe 600 (7.5%). Although it was narrowly edged out by BET-TR (16.6%), the SBITOP TR index remains a standout performer among European markets, offering strong returns driven by both price appreciation and dividends. While the Nasdaq 100 led with an annual return of 20%, the SBITOP TR index stands out for its balance of growth and yield. Over the same period, dividends contributed 6.5% annually to SBITOP’s returns, underscoring the index’s appeal to income-focused investors.
Companies within the SBITOP index are known for their consistent and substantial dividend payouts, a trait shared with Romania’s BET index. This dividend culture has been a key factor in attracting investors to the Slovenian market, offering a reliable source of income alongside strong capital appreciation. InterCapital Asset Management introduced an ETF tracking the SBITOP TR index in late 2020, listing it on both the Zagreb and Ljubljana Stock Exchanges. To date, the ETF has attracted 20 million euros in assets from more than 700 investors. In the coming weeks, the ETF will also be listed on the Bucharest Stock Exchange, providing Romanian investors with direct exposure to the Slovenian market, traded in RON.
This new ETF listing will enable Romanian investors to benefit directly from the performance of the SBITOP TR index without the complexities associated with investing in foreign markets. Unlike investing in individual Slovenian stocks, where low liquidity and accessibility can pose challenges, ETFs offer seamless exposure to the entire index with built-in diversification. It eliminates the need to construct and maintain a portfolio of individual companies or closely monitor their financial results, allowing investors to focus on the overall market performance. Furthermore, the ETF reinvests gross dividends, bypassing any dividend tax effects, while providing the liquidity and ease of trading on the local Bucharest Stock Exchange.
The SBITOP TR index’s stellar performance reflects a combination of strong fundamentals, attractive valuations, and generous dividends. Its ability to outperform major global benchmarks while maintaining lower valuations makes it a compelling option for both growth and income-focused investors. As 2025 begins with impressive momentum, the SBITOP TR index continues to prove its status as a hidden gem in global equity markets, offering significant potential for those looking beyond the traditional heavyweights.
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Publish date : 2025-02-12 05:36:00
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