Sygnia is listing a FANG.AI Actively Managed ETF on Friday 29 September, JSE code SYFANG.
Sygnia bills the fund investment objective and strategy as “The objective of the Sygnia Itrix FANG.AI Actively Managed ETF is to provide a simple vehicle to investors who wish to gain investment exposure to companies which use advanced technologies to acquire and retain users, including industry disrupting technologies such as artificial intelligence, large language models, cloud storage, big data, social media, and e-commerce tools. The portfolio is actively managed and its holdings will depend on a number of factors including the underlying benchmark which is the NYSE® FANG+™Index (although the portfolio is not obliged to hold all the benchmark constituents).”.
The fund is actively managed with a management fee of 0.805% and a performance fee of “20% of the outperformance of the benchmark” that benchmark being NYSE® FANG+™Index.
A performance fee also means it cannot be included in a tax-free account.
My view is that AI especially is going to be everywhere in time and I still prefer the 1nvest Info Tech ETF ~ ETF5IT as my pick for tech exposure. For those wanting more direct exposure and active management this one competes nicely with the Sygnia 4th Industrial Revolution ETF ~ SYG4IR (both of which can be included in a tax-free account..
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.