FNB listed another 16 single stock ETNs issued over popular offshore stocks on Monday.
This is their third issue, previously they’ve done Nvidia, Eli Lilly, Palo Alto and Booking Holdings ETNs and then Apple, Tesla and more.
They again come in two flavours, one which includes the impact of the move in the exchange rate and the other which has no exchange rate impact.
Important as they are ETNs
They can NOT be included in a tax-free account
They expire. These expire 25 March 2030.
With or without currency
Each ETN is listed as either a Compo or a Quanto version.
The Compo has a C at the end of the JSE code and includes the impact of the ZARUSD exchange rate. So a weaker ZAR will see the ETN moving higher (assuming no change in the underlying share).
The Quanto excludes any currency moves and the JSE code ends in a Q.
Fees
The Compo has an effective 1% annual fee which FNB calls the tracking error margin.
Quanto has no fee as FNB makes “hedging and trading income”.
The new ones are below;
- ASML code ASETNC/Q
- Airbnb code BBETNC/Q
- Broadcom code BCETNC/Q
- BlackRock code BRETNC/Q
- LVMH Moet Hennessy Louis Vuitton code LVETNC/Q
- Novo Nordisk code NNETNC/Q
- Palantir Technologies code PTETNC/Q
- The Walt Disney Company code WDETNC/Q
I like these very much. Sure we can buy them offshore, but we can now also get them easy in our JSE account with or without any currency impact.
ETF blog
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.
