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 inlcude 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.
TheFNB listing brings the number of ETNs listed on the JSE to 50 with the exchange reflecting an overall market capitalisation of R16.3 trillion.