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Market Capitalisation Data for the South African Exchange Traded Industry for the Period Ended 30 June 2020

08 July 2020 Mike Brown, Managing Director at etfSA.co.za

The total market capitalisation of all ETFs and ETNs, listed on the JSE, rose from R100,8 billion at the end of 2019 to 106,6 billion at the end of June 2020.

This 5,8% increase in the size of the local ETP industry was noteworthy, given the market turmoil and general loss of value which took place in many other listed investments on the JSE over this period.

The key single contributor to the growth in the size of the ETF market in the first half of 2020, was the NewGold ETF, which increased its shares in issue by 11,7 million, effectively raising an additional R9,3 billion in new capital over the past 6 months. The 1nvest Global ETF also increased its market capitalisation over this period by just under R2 billion. Physical gold bullion, bought in the form of 100% physically backed ETFs, was a stand-out performer in the market during the first six months of 2020 and has enabled many South African investors to hedge their losses in other areas of the market.

Most of the 33 ETFs that track global equity markets, but are listed and trade on the JSE in rands, also showed good market capitalisation appreciation. Direct exposure to global markets through these instruments, which are also pure rand hedges, further assisted in the protection of portfolios from losses in local equity markets.

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