FNB JSE listed ETNs
In late 2020 and early 2021 FNB listed a bunch of Exchange Traded Funds (ETNs) tracking individual US-listed stocks that you can now buy in Rands on the JSE.
Important as they are ETNs
- They can NOT be included in a tax-free account
- They expire. These two tranches expire in September or November 2025
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”.
Stocks offered with code(s)
Expiring 30 September 2025
- Alphabet ~ ALETNC / Q
- Amazon ~ AMETNC / Q
- Apple ~ APETNC / Q
- Coke ~ COETNC / Q
- Facebook (Meta) ~ FAETNC / Q
- McDonalds / MCETNC / Q
- Microsoft ~ MSETNC / Q
- Netflix ~ NFRTNC / Q
- Tesla ~ TSETNC / Q
Expiring 28 November 2025
- Activision Blizzard ~ ABETNC / Q
- Adobe ~ ADETNC / Q
- Berkshire Hathaway ~ BHETNC / Q
- Ford Motor Company ~ FDETNC / Q
- Godman Sachs ~ GSETNC / Q
- JP Morgan Chase ~ JPETNC / Q
- Paypal ~ PPETNC / Q
- Visa ~ VSETNC / Q
I very much do like these ETNs. Yes, there are good reasons for taking money offshore and buying the stocks on the NYSE. But for those in Rands on the JSE this is a great product.
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.