Saving & Investing
Exchange Traded Funds (ETFs)
A unique investment tool that allows you to trade a basket of index, sector or commodity shares and enjoy the attractive returns of a traditional tracker fund, but with the liquidity of a stock exchange security.
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Exchange Traded Funds (ETFs) are passive index funds that are listed and trade like stocks on the Johannesburg Stock Exchange (JSE) Limited. ETFs are an effective means of trading a basket of shares - bundled by index, sector or commodity - through a single transaction. They also offer real-time trading, anytime pricing and significantly lower costs than unit trusts.
More accessible than typical index funds and with a lower risk profile, ETFs allow you to participate in the economic growth of an industry, sector or commodity.
What are the advantages?
- Diversified exposure through buying a single share
- Performance that tracks the market
- No minimum investment, you can buy one ETF security at a time
- Cost effective, significantly lower costs than unit trusts
- Buy and sell ETF securities during JSE trading hours