As the first exchange-traded fund (ETF) celebrated its 21st anniversary on the JSE, the surge in supply of ETFs comes as evidence that this sector has come into its own. Judging by the returns on these passive investments, ETFs are now part and parcel of investors’ portfolios and even forming a core holding in most.
Adèle Hattingh, manager for business development and exchange-traded products at the JSE, points to the increased acceptance of exchange-traded products (ETPs) in the market. The value of ETFs traded in 2020 was almost three times more than what was traded in 2019, reflecting almost R124bn traded during 2020, according to Hattingh. “In addition, the number of ETF trades had doubled in 2020 and the year-on-year volume increase was 60%.”
Interestingly, the composition of the ETP market is heavily skewed towards ETFs. According to Kingsley Williams, a chief investment officer of Satrix, ETFs constitute about 92% of the ETP market.
With 99 ETFs and exchange-traded notes (ETNs) and a further 36 index-tracking unit trusts, according to the latest Monthly South African ETF, ETN, and Unit Trust Index Tracking Performance Survey for January, there seems to be no halt in the growth of this sector. Despite the surge in product availability and diversification, retirement funds still seem to opt for more traditional destinations.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
