CREATING A NATIONAL INDEX ETF TO EXPAND HOUSEHOLD PARTICIPATION IN UZBEKISTAN’S STOCK MARKET: INTERNATIONAL EXPERIENCE

Abstract

This study examines the feasibility of introducing a national equity index exchange-traded fund (ETF) to broaden household participation in Uzbekistan’s stock market. It reviews academic evidence on ETF diversification, costs, retail investor behavior and sustainable finance, and compares experiences in the United States, Finland, India and Kazakhstan. Drawing on publicly reported first-half 2026 market indicators of the Tashkent Republican Stock Exchange and Uzbekistan’s investment fund legislation, the paper proposes an investable index and ETF operating framework. The analysis indicates that an existing market index alone is insufficient: underlying-stock liquidity, market making, transparent net asset value calculation, effective investor protection and accessible distribution channels are also necessary. Three illustrative scenarios quantify the potential mobilization of household savings under explicitly stated assumptions. The scenarios are not forecasts and do not imply guaranteed returns.