|
An Exchange Traded Note is a contractual obligation made by an issuer to pay the holder a return which may be linked to, for example, an interest rate, the performance of one or more shares, an index, an exchange rate or a commodity
Benefits
- Tracking errors are eliminated as ETN's give investors exact returns of an index
- ETN's are easily accessible as they are traded and settled on the JSE
- ETN's can act as an effective hedging tool
- ETN's offer better returns than bank deposits and most money-market unit trusts
- Stable interest income paid regularly (quarterly)
- Tax interest exemption allowance - R19000 for investors aged under 65 and R27500 for investors aged over 65
Who should use this product?
- Investors who understand the creditworthiness of ETN providers
- Risk tolerant investors. ETN's are the only option for gaining access to specific markets or asset classes
- ETN's offer an alternative asset class for retail investors looking to maximise their medium term returns
- Any investor who wants to manage risk
How to use this product?
- ETN's offer investment exposure to market sectors that may be difficult to achieve with other investments
- ETN's can act as an effective hedging tool
- ETN's are listed on an exchange and can be bought and sold throughout the trading day
|
|
Learn more about Exchange Traded Notes (ETNs) |
|
|
|
|