Cape Town - The JSE on Friday announced the listing of two new Satrix exchange-traded funds (ETFs), which offer investors access to the listed property sector and a basket of inflation-linked bonds.
Speaking on the new ETFs, Satrix CEO Helena Conradie said: "Different asset classes tend to behave differently under different economic conditions, and investing in a mix of asset classes is one of the chief means of reducing risk and volatility. We wanted to provide this to investors."
Conradie said there are also asset-specific reasons for the new ETFs. "The Satrix Property ETF will track the performance of the S&P SA Composite Property Capped Index, which invests in all companies in the S&P SA Composite Index that are classified as property companies."
The second new ETF is the Satrix ILBI ETF, which tracks an inflation-linked bond index, the S&P South Africa Sovereign Inflation-linked Bond 1+ Year Index, providing investors with a hedge against inflation.
The ETF market has seen steady growth globally as well as in South Africa and these two ETF listings bring the total number of ETFs listed on the JSE to 52, with a total market capitalisation of R69.9bn.
Donna Nemer, director of Capital Markets at the JSE, said: “ETFs are well regulated by both the JSE and the Financial Services Board and can be acquired, like any other listed share, through a stockbroker or online trading account. If the investor does not have a broker, ETFs can be obtained through an investment platform which offers a monthly debit order facility.”
ETFs are investments that track the performance of a group or ‘basket’ of shares, bonds or commodities. They offer tax and cost benefits, and also enable an investor to invest in a variety of instruments (for example shares) through buying a single investment product.
ETFs are a suitable investment vehicle for those who are new to the world of stock markets but are also used by institutional investors.
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