Absa Capital Exchange Traded Funds (NewFunds)
Exchange Traded Funds (ETFs) are passively managed index funds that are listed and traded on a securities exchange. The main aim of an ETF is to track the performance of and/or gain a broad exposure to a particular index, sector or a commodity.
The first ETFs were launched in the early 1990s, but were little-known until about 1999 when investors began realising that ETFs were consistently delivering better returns at lower commissions than unit trusts. Since then hundreds of ETFs had been established in securities exchanges around the world.
ETFs can be described as investment products that have evolved past unit trusts in offering improved medium to long-term investment returns with relatively little risk.
Four compelling reasons why an ETF can be the better investment alternative:
- Low Cost
- Tradability
- Transparency
- Diversified investment
eRAFI™ Overall SA
- The eRAFI™ ETF methodology weights shares based on fundamental valuation metrics - sales, cash flow, book price and dividends as well as two additional filters - rather than traditional market capitalisation. Click to learn more about eRAFI™ Overall SA
NewSA
- The NewSA ETF (NewSA) is the first investment product in South Africa that enables investors to recognise and invest in transformation and broad-based black economic empowerment (B-BBEE) in South African companies. Click to learn more about NewSA
Shari'ah Top 40
- NewFunds Shari’ah Top 40 ETF is the first Shari’ah compliant equity ETF in South Africa. Shari’ah Top 40 ETF is a low-cost, transparent and accessible investment product that supports the growing demand for Islamic investment products in the South African market. Click to learn more about Shari'ah Top 40
eRAFI™ Financial 15
- First financial sector ETF in South Africa using an innovative enhanced fundamental indexing approach to portfolio construction. Click to learn more about eRAFI™ Financial 15
eRAFI™ Industrial 25
- First industrial sector ETF in South Africa using an innovative enhanced fundamental indexing approach to portfolio construction. Click to learn more about eRAFI™ Industrial 25
eRAFI™ Resource 20
- First resource sector ETF in South Africa using an innovative enhanced fundamental indexing approach to portfolio construction. Click to learn more about eRAFI™ Resource 20
MAPPS™ Growth
- This ETF is aimed at investors with a longer time horizon (e.g. younger investors) who is willing to accept higher variability of returns in exchange for the prospect of long-term real investment returns MAPPS™ Growth
MAPPS™ Protect
- This ETF is aimed at investors with a shorter time horizon (e.g. closer to retirement) and lower tolerance for return variability. Investors in the MAPPS™ Protect ETF would prefer a more stable return stream MAPPS™ Protect
