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ETF: Understanding the Krugerrand Custodial Certificate

Kristia van HeerdenETF Blog, Latest

The physical nature of a gold investment provides investors with a sense of security. Ironically, though, taking delivery of a physical gold investment comes with risks. RMB’s Krugerrand Custodial Certificate (KCCGLD) offers an opportunity to invest in Krugerrands without having to resolve issues around storing physical assets. Like the Dollar Custodial Certificate (DCCUSD), the Krugerrand ...
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ETF: The new CoreShares Property ETF

Kristia van HeerdenETF Blog, Latest

Does anything sound more appealing to an ETF investor than dividend income that covers your living expenses?  The problem with this strategy is that dividends aren’t reliable. It’s up to the management of a listed company to determine whether or not they want to share profits in a given year. Predicting whether you’ll receive a ...
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ETF: Understanding the Satrix MSCI World ETF

Kristia van HeerdenETF Blog, Latest

Offshore investing has never been easier. South African investors can buy offshore index-trackers in rands via local stockbrokers. The product selection also increases every year. We can get exposure to euro, dollar, and pound-based investments at the click of a button. The Satrix MSCI World ETF is leading the charge in global exposure, with a ...
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ETF: Understanding momentum ETF strategies

Kristia van HeerdenETF Blog, Latest

While ETFs weighted by market capitalisation get the diversifying job done, ETF issuers can’t all offer the same products. Enter factor investing! Factor-based ETFs only invest in companies whose share prices or fundamentals share certain characteristics. In this post, we are going to look under the hood of South Africa’s two momentum ETFs.  Not following? ...
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ETF: Understanding SWIX ETFs

Kristia van HeerdenETF Blog, Latest

Shareholder-weighted index (SWIX) trackers are weighted by ordinary shares held in the South African share register. Shares in these blue chip companies held by other companies don’t form part of the weighting of the index, neither do shares held by offshore investors. Since these products are weighted by shares held locally, liquidity is a built-in ...
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ETF: Income ETFs III – Bonds and Preference Shares

Kristia van HeerdenETF Blog, Latest

In the first two posts in this series, we investigated dividend-hugging ETFs and listed property ETFs. While both of these are worth consideration when investing for income, both are listed instruments, which introduces volatility to your investments. This makes them more appropriate for investors with a longer investment horizon. For those nearing financial independence, debt ...

Cash Club: ETFs made easy

Njabulo NsibandeCash Club, Latest

So there I was, chilling at Victory Square in the beautiful city of Timisoara, Romania with a colleague of mine, when he asked me to explain what an ETF is. (I lent him my copy of Sam Beckbessinger’s Manage Your Money Like A F*cken Grownup to read on the plane.)  My colleague is a health ...
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ETF: Income ETFs II – Listed Property ETFs

Kristia van HeerdenETF Blog, Latest

The right type of income investment depends on two important considerations. The first is your investment horizon. Your asset allocation will depend on the amount of time you plan on being invested. The closer you get to cashing out your investment, the less volatility you can afford. The second is your tax situation. Income from ...
Benefits of offshore investing

Video: Benefits of offshore investing

Simon BrownPower Hour, Video Invest, Webinar and Video

In times of economic uncertainty, taking investments offshore as a means of diversifying makes sense for a discerning investor. However, it is often believed that going offshore is for the ultra-rich and affluent. There’s also a misconception that offshore investing is all about buying property in London or a summer villa in the south of ...
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ETF: Volatility ETFs explained

Kristia van HeerdenETF Blog, Latest

This year, Absa introduced three new ETFs that aim to capitalise on the relationship between risk and return. (If that sentence scared you to death, hang in there. It will make more sense later in this article.) The products aim to minimise the amount of money investors can lose when markets are scary. They do ...