Exchange Traded Funds or ETFs from Absa Capital are new generation investment funds listed on the JSE Ltd.
Typically, ETFs try to replicate a stock market index, a market sector, or a commodity. ETFs can be traded, just like shares, and are fully transparent and cost-effective.
As a leading originator of ETFs in the South African market, Absa Capital is not content to simply issue index trackers. Absa Capital pioneered, listed and operates NewRand, the first ETF in South Africa based on a proprietary investible index - the NewRand Index, comprising rand hedge stocks with the highest correlation to the Rand/USD exchange rate.
Absa Capital broke new ground with the launch of NewGold - the first and only gold ETF in South Africa. In addition NewGold is also the first and only Shari’ah compliant ETF available in the domestic market.
Absa Capital then redefined the boundaries of the local ETF market with the listing of the first ever eRAFI™ ETF. This is the first time an ETF will weight shares based on fundamental valuation metrics as opposed to market capitalisation.
Absa Capital also originated South Africa’s first BEE Exchange Traded Fund, the NewSA ETF. The NewSA ETF tracks the performance of the NewSA Index, a modified Top40 index, with the constituent weightings adjusted to reflect their respective BEE status, as determined using the Codes of Good Practices, on Broad-Based Black Economic Empowerment, published by the Department of Trade and Industry.
As ETFs continue to grow in prominence, Absa Capital will continue to redefine the market.