20 ETF facts on 20 years of investment shake-up in SA

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ETFs passively track the performance of an index or a commodity and have lower investment costs than funds managed actively by fund managers supported by a research team.

This year the South African exchange-traded fund industry will mark the 20Since the first rand was invested in the Satrix Top40 ETF in November 2000, more than R100bn has been invested in close to 100 ETFs and exchange-traded notes that subsequently launched, according to the latest State of the South African Exchange Traded Product Industry report produced by ETF investment platform, etfSA.

Over the past two decades, this is how ETFs have evolved to offer you, as an investor, some compelling alternatives to actively managed funds:There are 96 ETFs and ETNs offering exposure to local and global equity, bond and listed property markets as well as currencies and commodities. There are now 25 ETFs that track indices of offshore equity, property and bond markets – some globally and regionally in the US, Europe, Japan or emerging markets.

There are now a few ETF options for investors who need an income from their investments. Satrix, CoreShares and Sygnia all have ETFs that invest in shares that pay high dividends.

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