The South African exchange-traded product (ETP) industry has experienced a strong third quarter this year, with assets amounting to R99.3 billion, an increase of 27.6 percent since the beginning of the year.
Reporting on the state of the industry, which consists of issuers of exchange traded funds (ETFs) and debt instruments known as exchange traded notes (ETNs), Mike Brown, the managing director of online ETF platform etfSA.co.za, said a gain of R8 billion was made in the third quarter.
This stemmed mainly from a rise in commodity exchange traded funds in issue and from price gains in these products.
Four new ETFs were issued in the period, all smart-beta products, which are passive funds that use factor indices to capture performance above that of the market average.
Absa Capital, with its range of NewFunds products, issued three ETFs that manage volatility by switching between cash and equities, depending on momentum and drawdown targets.