State of the South African Exchange Traded Product (ETP) Industry – as at 30 June 2022

INDUSTRY OVERVIEW
The total market capitalisation of all ETFs and ETNs, listed on the JSE, at the end of June 2022, amounted to R122 567,7 million, a fall of R13 482 million, or 9,9%, on the market capitalisation of the ETP industry, at the end of 2021.

This fall in the value of the industry largely reflects the decline in global and local equity markets over the first six months of this year. For instance, the US Standard & Poors (S&P) 500 index has fallen by 20% to date in 2022, with even greater declines (by 30,5%) in the MSCI World index, over the same period.

The JSE has fared a little better, but has not been able to fully offset the global equity sell-offs, dropping by just over 10% to date in 2022.

Some 70% of the market capitalisation of ETFs/ETNs listed on the JSE, reference foreign equity, bond, property or commodity assets. Accordingly, the fall in the value of all major global markets has taken its toll on the local ETP industry.

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