The new Ashburton Global 1200 Equity Exchange Traded Fund (ETF), with a large interest in developed markets, listed on the Johannesburg Stock Exchange becoming the 9th ETF to list this year.
The Ashburton Global 1200 Equity ETF will track the S&P Global 1200 index to give investors efficient exposure to global equity markets. The index boasts exposure to some of the largest and well-respected companies globally, and captures approximately 70% of the world market cap covering seven distinct regions and 30 countries. The product allows for South African retail investors to invest in developed market stocks without having to apply for offshore allowances.
The listing offers South African investors another vehicle with which to gain exposure to global markets. Interest to invest in exchange traded products has seen steady growth globally, as well as in South Africa. Whether you are a first time investor or an experienced professional managing risk, ETFs provide an easy, cost effective investment option with a broad range of securities.
ETFs are great for investors who want to create a diversified portfolio. There are thousands of ETFs available globally – they cover every major index and sector of the market. There are international ETFs, regional ETFs and even country-specific ETFs. Specialized ETFs cover specific industries like technology, biotech, energy and market niches such as REITs and gold.
The Ashburton Global 1200 Equity ETF provides investors with access to a diverse investment portfolio, both from a currency and geographic perspective at an expected Total Expense Ratio (TER) of only 0.45%. From the perspective of South African investors, most benefits will be gained from investing in developed market equities as they would typically have local equity exposure already. Looking at its geographic spread, currently the portfolio has its biggest exposures to the United States at 57%, followed by 7.8% to Japan and 6.5% to the United Kingdom.
This new ETF listing brings the total number of ETFs listed on the JSE to 58 with a total market capitalisation of ZAR79 billion.