Wild is the Rhodium ETF roller coaster ride (DALL·E)
Three and a half years ago I wrote this piece of the local Rhodium ETF from 1nvest (JSE code: ETFRHO), the key quote was;
A 693% return in three years? Now that is an awesome return for the Standard Bank rhodium Exchange Traded Fund (ETFRHO). Even the last year this ETF has returned an impressive 130%.
At the then the ETF was under R800 and ran still higher to over R4,000 during the first quarter of 2021 as Rhodium experienced an insane rally to almost US$30,000 an ounce. It know trades at just under R1,500.
A wild wild ride that, depending when you bought, has either made holders a lot of money, or lost them a lot of money.
This reiterates the point I made in the original post, a Rhodium (or any niche position) really needs to be small and well managed.
As for the future of Rhodium? I’ll repeat what I said over three years ago;
The honest answer is I have no idea if rhodium can repeat that performance or if it has topped and is about to collapse in a heap like a Protea batting line-up.
So I say again, be careful and keep it small.
| ETF name | 1nvest Rhodium ETF |
| JSE code | ETFRHO |
| ETF issuer | 1invest |
| Issue date | 4 December 2015 |
| Total investment cost | 0.75% |
| ETF Benchmark | Rand price of Rhodium |
| Tax-free savings account | Not allowed |
| ETF major holdings | Rhodium (100%) |
| Market cap | R224million |
| Performance 1 year | -44.0% |
| Performance 3 years | +24.7% |
| Performance 5 years | +509.9% |
| Performance since listing | +1,373.2% |
| Dividend yield | None paid |
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.