Johannesburg Stock Exchange (JSE) is celebrating 20 years since Exchange Traded Funds (ETFs) were first listed. Picture: Nhlanhla Phillips/African News Agency/ANA
Johannesburg Stock Exchange (JSE) is celebrating 20 years since Exchange Traded Funds (ETFs) were first listed. Picture: Nhlanhla Phillips/African News Agency/ANA

JSE celebrates 20 years of Exchange Traded Funds

By Staff Reporter Time of article published Dec 1, 2020

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JOHANNESBURG - Johannesburg Stock Exchange (JSE) is celebrating 20 years since Exchange Traded Funds (ETFs) were first listed.

Since they were first listed, ETFs have become well-liked investment vehicles available for both retail and institutional investors. The popularity of ETFs is closely linked to their simplicity and affordability.

An ETF is a listed investment product that tracks the performance of a "basket" of Shares, Bonds or a single commodity, these "baskets" are known as indices.

An ETF can be bought or sold in the same way as an ordinary Share and are ideal for any investor wishing to gain exposure to different sectors, asset classes, both locally and globally.

ETF’s allows investors to grow their wealth and get first-hand access to the world of investing through the stock exchange. They also provide a solution to those who are new to investing and looking to build wealth through the stock market.

The Johannesburg Stock Exchange introduced its first ETF to investors on 27 November 2000, the Satrix Top 40. The Satrix Top 40 became the bourse’s pioneer ETF listing and its IPO was one of the biggest to have occurred on the JSE at the time. Currently, the JSE offers 78 different types of ETFs.

Adèle Hattingh, Manager of Business Development and Exchange Traded Products at the JSE said, “The ETF market has become an integral part of many investors’ portfolios with the objective of harnessing the potential of the stock market in an easy and cost effective manner. This investment option continues to offer attractive and diverse opportunities for both existing and first-time investors”.

“The JSE is proud to be celebrating this significant milestone of 20 years of ETFs. With 78 ETFs now listed on the JSE and having exceeded the R100bn mark in our total ETF market cap, we are pleased with the progress the industry has made. We will continue to create an environment that supports issuers and market players in providing innovative and diverse investment options for the benefit of retail and institutional investors. The JSE is committed to improving access to smart financial products such as ETFs to assist South Africans in becoming savvy investors while improving the saving culture,” added Hattingh.

BUSINESS REPORT ONLINE

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