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Growth in the number of JSE-listed ETFs must be limited, mustn’t it?
There are only so many indices that can be tracked.
But it’s not only the index but the way it’s tracked, as the latest – number 23 – ETF demonstrates.
Listed by Nedbank, the BettaBeta ETF is an interesting variant.
Like the popular Satrix 40, it tracks the 40 largest shares by market capitalisation on the JSE – but the top 40 aren’t weighted.
Instead, the ETF – the first by Nedbank – assigns an equal weighting to each share, 2.5% of the portfolio, which won’t change despite what respective top 40 share prices might do.
The idea is to give more balanced, less volatile and consistent performance.
The constant weighting will rule out the terrible resources bias of the Top 40 index and include equal exposure to the smaller market capitalisation shares at the bottom of the pile.
What’s next? It could be an ETF tracking the maize price. It’s probably arriving soon...
- Finweek
There are only so many indices that can be tracked.
But it’s not only the index but the way it’s tracked, as the latest – number 23 – ETF demonstrates.
Listed by Nedbank, the BettaBeta ETF is an interesting variant.
Like the popular Satrix 40, it tracks the 40 largest shares by market capitalisation on the JSE – but the top 40 aren’t weighted.
Instead, the ETF – the first by Nedbank – assigns an equal weighting to each share, 2.5% of the portfolio, which won’t change despite what respective top 40 share prices might do.
The idea is to give more balanced, less volatile and consistent performance.
The constant weighting will rule out the terrible resources bias of the Top 40 index and include equal exposure to the smaller market capitalisation shares at the bottom of the pile.
What’s next? It could be an ETF tracking the maize price. It’s probably arriving soon...
- Finweek
