ETF Blog Archives - Page 15 of 24

ETF: The Ashburton 1200 facelift

Kristia van Heerden 24 June 2020ETF Blog, Latest

This ETF is now owned by FNB and the code is FNBEQF. The Ashburton 1200 (ASHEQF) ETF is the only ETF weighted by market capitalisation that invests in developed as well as emerging markets. For that reason, it’s been our ETF of choice for a few years. This ETF has always been slightly more expensive ...

Comparing ETFs: Methodology

Kristia van Heerden 17 June 2020ETF Blog, Latest

ETF methodologies are getting smarter and our investible universe now includes the whole world. With a growing number of investment options, choosing the best ETF for your portfolio requires a fair bit of digging. ETF methodology is your shovel. ETF methodology JSE investors can choose between ETFs weighted by market capitalisation and smart beta ETFs. ...

ETF: MAPPS Protect in a market crash

Kristia van Heerden 10 June 2020ETF Blog, Latest

Effective 1 March 2023, this ETF is now the Satrix Multi Asset Passive Portfolios Solutions Protect ETF (JSE code: STXMAP) How effective is diversification at smoothing out investment performance during a crash? The NewFunds MAPPS Protect ETF was designed to withstand a volatile equity environment by splitting investments between SWIX 40 equity and government bonds. ...

ETF: Understanding the 1nvest SWIX 40

Kristia van Heerden 3 June 2020ETF Blog, Latest

The 1nvest SWIX 40 ETF is a top 40 product with a difference. Like many other local products, this ETF invests in the 40 biggest companies listed on the JSE. Unlike other top 40 ETFs, however, this ETF doesn’t just invest more in bigger companies. In fact, weighting an index by local shareholders was the ...

ETF: Concentration risk in ETFs

Kristia van Heerden 27 May 2020ETF Blog, Latest

In an ETF weighted by market capitalisation, your exposure to companies with rising value will increase as share prices rise, and decrease as share price falls. The risk is that over time your overall portfolio could inadvertently become over-exposed to a single sector or even share.

ETF: Understanding the Shari’ah 40 ETF

Kristia van Heerden 20 May 2020ETF Blog, Latest

Effective 1 March 2023, this ETF is now the Satrix Shariah Top 40 ETF (JSE code: STXSHA) Aligning profitability with ethics is a sticky problem. Since businesses don’t seem to get it right, it’s not that surprising that ethical ETF choices are limited. Over the years the local industry has seen some attempts at ethics-driven ...

ETF: Understanding feeder funds

Kristia van Heerden 13 May 2020ETF Blog, Latest

Feeder funds allow issuers to offer offshore ETFs without having to buy the underlying shares. This means less administration and, importantly, lower fees. Satrix introduced feeder funds to the South African market with three offshore ETFs in 2017. Other ETF issuers have followed suit since. The 1nvest global range consists entirely of feeder funds. You may ...

ETF: Understanding the 1nvest Global Property ETF

Kristia van Heerden 6 May 2020ETF Blog, Latest

In days of yore, a property investment involved an immovable collection of bricks and all the concentration risk of a physical thing in a physical place. It also required an enormous amount of capital or debt upfront. The introduction of listed property made it possible to benefit from property investments without the capital outlay and ...

ETF: Track your favourite with the JSE

Kristia van Heerden 29 April 2020ETF Blog, Latest

ETF investors don’t need to pay too much attention to daily market movements. Indices follow rules. Since ETF issuers take care of the rule following, us investors can basically just sit back and watch our assets grow. Traders and individual share investors rely heavily on performance data to keep track of the success of their ...

ETF: Volatility case study

Kristia van Heerden 15 April 2020ETF Blog, Latest

Us DIY investors don’t often get to see volatility in action. For the most part volatility is something reserved for the mysterious back-rooms of index houses. Fortunately, this year’s market crash is giving us all the opportunity to see volatility flex. If you owned an ETF in March, your understanding of volatility is probably close ...