Johannesburg, 13 October 2020: Today, the JSE is proud to announce a brand-new opportunity for South African investors’ investment exposure to some of the world’s largest companies as First National Bank (FNB) lists new Exchange Traded Notes (ETNs). South African investors will now have the opportunity to gain exposure to 10 different underlying assets which include stellar international companies, such as Alphabet (Google’s parent company) Apple, Amazon, Facebook, Microsoft, Netflix, Tesla, Coca Cola, and McDonald’s.
As well known brands, they offer South African investors with exposure and potential growth prospects as these companies continue to be at the forefront of the recent surge in the Dow Jones and the S&P indices in the last few months.
Exchange Traded Notes (ETNs) are exchange-traded debt instruments that give investors access and returns based on the performance of a wide spectrum of assets. Both instituational and individual investors looking to diversify and enhance the performance of their portfolios can use ETNs. To start investing, investors can make use of monthly debit orders or relatively small once-off contributions through an ETN online platform, FSP or JSE member firm. ETNs minimise some of the associated costs and management of buying underlying shares or securities.The process of buying or selling ETNs on the JSE can be done quickly and at a relatively low cost. Investors can also choose between a quanto or compo ETN i.e. exclude USD/ZAR exchange rate performance or include it.
“ETNs are an exciting way to have exposure to a variety of securities and markets, in an easier and accessible manner. As long as investors are mindful of which issuers they choose to invest with and associated costs, ETNs offer increased diversification and investment opportunities in local and global markets,” said Valdene Reddy, Director of Capital markets.
“The exchange is excited to list the new ETNs from FNB. Although ETNs are still a growing product in the South African exchange listed market having been launched in 2010, they bring a new dimension to exchange traded products as well as offer their own unique characteristics to the South African investment world,” said Reddy.
“The product is especially useful in granting individual investors exposure to assets that are sometimes harder to access as an individual investor. We look forward to seeing investors have greater choice and exposure through this new offering,” concluded Reddy.
The FNB listing brings the number of ETNs listed on the JSE to 50 with the exchange reflecting an overall market capitalisation of R16.3 trillion.
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The Johannesburg Stock Exchange (JSE) has a well-established history operating as a marketplace for trading financial products. It is a pioneering, globally connected exchange group that enables inclusive economic growth through trusted, world class, socially responsible products, and services for the investor of the future. It offers secure and efficient primary and secondary capital markets across a diverse range of securities, spanning equities, derivatives, and debt markets. It prides itself as being the market of choice for local and international investors looking to gain exposure to leading capital markets on the African continent. The JSE is currently ranked in the Top 20 largest stock exchanges in the world by market capitalisation, and is the largest stock exchange in Africa, having been in operation for 130 years.
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