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JSE offers more international ETFs

14 March 2018Prejelin Naggan, JSE
Prejelin Naggan, Head of Primary Markets, JSE and Wehmeyer Ferreira, Chief Operating Officer of STANLIB Index Investments

Prejelin Naggan, Head of Primary Markets, JSE and Wehmeyer Ferreira, Chief Operating Officer of STANLIB Index Investments

STANLIB Index Investments lists global fund range on the JSE.

Today STANLIB Index Investments listed three new Exchanged Traded Funds (ETFs) on the Johannesburg Stock Exchange (JSE), further broadening the exchange’s offering of global ETFs.

STANLIB Index Investments listed the STANLIB MSCI World Index Feeder ETF, the STANLIB Global Government Bond Index Feeder ETF, and the STANLIB Global REIT Index Feeder ETF.

The MSCI World Index Feeder ETF gives clients access to a well-recognized global equity index, and exposure to over 1 600 large and mid-cap companies across 23 developed market countries.

Through the Global Government Bond Index Feeder ETF investors will have access to Global G7 Government Bonds, which includes government bonds in the United States, Canada, France, Germany, Italy, Japan and the United Kingdom. With the Global REIT Index Feeder ETF they have access to a diversified real estate portfolio in listed real estate companies and real estate investment trusts (REITs) worldwide across countries in developed and emerging markets.

Prejelin Naggan, Head of Primary Markets at the JSE says the local Exchanged Traded Fund (ETF) industry continues to grow and provide investors with access to low cost passive investment products.

The new listing brings the number of ETFs listed on the JSE to 70.

“The local ETF industry is responding to the need for products that gives exposure to a diversified range of global regions and sectors at a lower cost. The JSE is proud to provide a platform for our clients to list products that allow South African investors to diversify their portfolios and gain exposure to global markets using products that are easy to access and understand,” says Naggan.

Wehmeyer Ferreira, COO of STANLIB’s Index Investments business, says the funds are low cost vehicles that offer investors diversified exposure to global markets in a single fund.

“Local investors do not need to be experts in global securities or pay high costs to benefit from global investment returns. Global investing can be an effective way to diversify your existing investments and provide a means to profit from faster growing economies around the world,” says Ferreira.

“The funds can confidently be used as building blocks for an investor’s portfolio to expand their investment opportunities outside of South Africa in a low cost and transparent manner,” according to Ferreira.

Today’s listing comes after STANLIB last week listed two ETFs on the JSE – the STANLIB S&P500 Index Feeder ETF and S&P500 Info Tech Index Feeder ETF.

The S&P500 Index Feeder ETF tracks the index by the same name, giving South African investors exposure to the performance of the top 500 leading companies listed on the New York Stock Exchange or NASDAQ. The S&P500 Info Tech Feeder ETF tracks the S&P500 Info Tech index, which consists of companies in the information technology sector including Apple, Alphabet and Facebook.

“ETFs are playing an increasingly important role in addressing the need for a stronger savings culture in South Africa. They are not only easy to use, but also allow ordinary South Africans to start investing through an affordable monthly contribution,” concludes Naggan.

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