Satrix has listed a new exchange traded fund on the Johannesburg Stock Exchange, which tracks the MSCI Emerging Markets Investable Market Index.

The Satrix MSCI Emerging Markets ETF will track the performance of the MSCI Emerging Markets Investable Market Index (IMI), which represents large, mid and small cap companies across 24 emerging market countries. 

The index covers approximately 99% of the free float-adjusted market capitalization in each country.

In addition, Satrix has also listed ETFs that track the MSCI World index the S&P 500.

ETFs are investment products which track the value of a basket of shares or other assets like bonds and commodities.

Prejelin Naggan, Head of Primary Markets at the JSE, said the new ETFs can assist investors further in managing their offshore exposure and diversifying their portfolios. 

“The JSE offers a wide range of ETFs which provide a cost-effective way for investors to get exposure to local equity markets as well as commodities, bonds, money markets and listed property. The new ETFs now also gives investors even greater choice when they want to include exposure to overseas markets in their portfolios.”

Naggan said ETFs are also a useful tool for first-time investors. 

“As the JSE we strive to make investment more accessible to all South Africans and cost-effective products which are easy to use, can play an important role through helping to demystify investing. ETFs also allows retail investors to start investing with a relatively small initial amount or monthly payment, which also increases accessibility.”

Helena Conradie, CEO of Satrix, said: “Our investors can now access global equity markets on the JSE alongside their local ETF investments. We are always looking at ways in which we can expand our offering and these rand-denominated ETFs allow investors to access global markets with ease, and at a low cost.”

Conradie added: “While South Africa has world-class companies to invest in, there are many industries, economic regimes and currencies you are simply not able to access by keeping all your capital in local markets. To add some perspective, South Africa is one of 24 emerging market countries globally, and there are a further 23 countries classified as developed markets. By adding exposure to international companies you are diversifying your investment portfolio.”