Exchange Traded Products are popular around the world because they make investing simple and cost effective.
Traditionally, investing on the share market has meant searching for individual shares or portfolios of shares that, investors hope, will do better than the market. This is known as active investing. It requires skill and that skill comes at a price. Strange as it may seem, it is this price that results in a large number of actively-managed funds underperforming, not outperforming, the market. When it comes to simplicity, one of the best investment products you can own doesn’t try to pick the winners, but invests in all the shares of a market index. For instance, it is now possible for you to own the performance of the top performing shares on a stock exchange with one simple investment.
Exchange Traded Products are low-cost index products that invest in all or some of the shares of an index. Because they are traded on an exchange, you can buy or sell them whenever the market is open. For your peace of mind, virtually all Exchange Traded Products are subject to robust regulations such as the Financial Markets and Collective Investment Schemes Acts.
Access leading South African and international asset managers and banks All in one place for your convenience.
Exchange Traded Funds (ETFs)
ETFs are index-based unit trusts that hold the physical assets of the index they track and are traded like individual shares on stock exchanges. ETFs cover most equity, bond, property, commodity and money market indices. ETFs don’t try to do better than the market, but because of their lower costs they often end up beating the funds that try.
Exchange Traded Notes (ETNs)
ETNs differ from ETFs in that they do not hold the physical shares of the indices they track. They track an index through synthetic replication of the index in the form of unsecured debt underwritten by a bank.
Exchange Traded Fund Portfolios (ETFs)
ETF portfolios track the market by investing in a basket of low cost ETFs and ETNs according to a strategic asset allocation model. They simply provide the return of the market on a risk adjusted basis.
ETF Retirement Annuity
ETF retirement annuities are low cost penalty free investment products which track the market according to pension fund regulations by investing in a basket of low cost ETFs and ETNs on a risk profiled basis.
ETF Living Annuity
Index based living annuities let you choose and switch between your own low cost, penalty free, risk profiled index portfolios. Nominated beneficiaries receive the residual value, free of any estate duty, on the death of the annuitant.
ETF Preservation Fund
Your pension fund savings cannot be transferred to your next employer. A low cost penalty free ETF preservation fund enables your retirement savings to continue to grow through a choice of index tracking risk adjusted ETF portfolios that are managed according to pension regulations.
Index based structured products are designed to provide varying levels of capital protection, whilst offering investors tailor made enhanced return strategies by utilising traditional shares, but replacing their payment features with non-traditional payoffs derived from the performance of one or more underlying assets.
Market Linked Endowment Policy
These are used to house investment assets in a tax efficient structure. Other benefits include the absence of capital gains tax and the ability to transfer the assets with their tax benefits intact to nominated beneficiaries on the death of the policy holder.