Eight new ETNs from FNB
FNB listed eight new Exchange Traded Notes (ETNs over four US listed stocks; Nvidia, Booking Holdings, Eli Lilly and Palo Alto back in May of this year.
These are fractional ETNs so priced around 1000c rather than the thousands of Rands that Nvidia for example would trade at.
They also importantly come in two flavours, either a Compo or a Quanto version. The Compo has a C at the end of the JSE code and includes the currency fluctuations in the price. The Qauanto sees the JSE share code ending in a Q and here the currency moves have zero impact on the price of the ETN.
The Compo has an annual 1% fee while the Aunt has no fee as FNB makes “hedging and trading income”.
The codes are as below;
- Nvidia ETNs (NVETNC & NVETNQ)
- Booking Holdings ETNs (BKETNC & BKETNQ)
- Eli Lilly and Co ETNs (LLETNC & LLETNQ)
- Palo Alto Networks ETNs (PAETNC & PAETNQ)
All eight are trading on the JSE and an important note that as they are ETNs they cannot be included in a tax-free account.
This follows up on the initial launch of 34 launched in late 2020 covering stocks such as; Apple, Meta, Microsoft, Amazon, Alphabet and more.
They also listed four index ETNs covering; iShares Global Water ETF, iShares Global Clean Energy ETF, iShares Global Water ETF and MSCI World Socially Responsible 5% Issuer Capped Total Return Net Index.
This new issue brings the total number to fifty and we very much like this entire series as an easy way to get exposure to offshore stocks and indices with local cash and in smaller amounts.
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.
