Johannesburg Stock Exchange lists two new active ETFs

BREAKING NEWSOctober 4, 2023 at 10:25 AM UTC

Two more Actively Managed Exchange Traded Funds (AMETFs) have been listed on the Johannesburg Stock Exchange (JSE), adding a further set of globally recognized options to the bourse’s portfolio.

AMETFs are collective investment schemes (CIS) that are traded on the market whereby the investment manager uses an actively managed investment strategy to produce a return for the investor rather than utilizing a passive investment strategy. This marks the first AMETF listings for both Sygnia Itrix alongside specialist global listed real estate investment manager, Reitway Global.

The AMETF from Sygnia marks its first issuance in the market and will predominately invest in global technology equity securities and assets in liquid form. A minimum of 5,000,000 securities will be listed by Sygnia with an issue price of R10.00 each. The portfolio’s actively managed holdings will depend on a few factors including the underlying benchmark – the NYSE® FANG+™Index.

Key Takeaways

For retail investors, especially those based outside Africa, who want to invest in Sub-Saharan Africa's economies, it's often a smarter choice to invest through a mutual fund or exchange-traded fund (ETF), whether actively or passively managed. These funds track a diverse group of companies operating in the region, instead of relying on individual stocks or ventures. Investing in ETFs and mutual funds has several advantages, such as being easy to trade (some are traded on U.S. exchanges), offering diversification, and being professionally managed.