The ETF Investor - Episode 51 - Precious Metal ETPs

There has been a sudden surge in interest in precious metal ETFs in recent months, especially in platinum. What is driving this demand? Why can only some banks, and no asset managers, be issuers of commodity ETPs? In addition to platinum, we cover gold, silver, palladium and rhodium in this podcast.

The ETF Investor - Episode 50 - Actively Seeking Income Yield

The options for income and yield in an investment portfolio continues to expand, and in this episode we feature two new ETFs available to investors for consideration. The JSE is also getting its first actively-managed ETF, decisively crossing the divide between index tracking and active management in exchange-traded products. There is no such thing as “passive” in investments.

The ETF Investor - Episode 49 - Enhancing Yield through Share Buybacks

The appeal of dividends in an investment strategy is well-known, and arguably timeless, but supplementing this strategy with share buybacks is perhaps less well-known, and certainly not one that has been easily accessible for retail investors. The range of investment strategies available through the Actively-Managed Certificate (AMC) wrapper, listed on the JSE, continues to expand, and now also allows for easy access to an enhanced yield strategy, combining dividends and share buybacks in one portfolio.

The ETF Investor - Episode 48 - Spotlight on Liquid Private Credit

Liquid Private Credit in the US market is an investment opportunity not readily available to South African investors in any form other than an actively-managed certificate (AMC). Prior to the global financial crisis in 2008, most companies raised capital and financing by traditional means such as either banks or via public debt, but subsequent regulatory changes restricted the amount of bank lending to smaller and riskier businesses. In simple terms, that’s where private credit stepped in to fill the gap thus created in the market.

The ETF Investor - Episode 47 - Diversification with ETFs

“Diversification is the only free lunch in town”. This statement is famously attributed to Nobel laureate Harry Markowitz and is often cited as your best defence against market risk. But what does diversification mean in practice, and how can we use ETFs to achieve this in a portfolio?

The ETF Investor - Episode 46 – Actively Managing Commodities

Commodities represent an investment opportunity that is quite different from the more traditional asset classes such as equities and bonds, but one that is arguably not as well understood, and often quite difficult to access. Considering the current global inflation backdrop, as well as the synchronicity of traditional asset class performance, now is a good time to look for sources of uncorrelated risk-adjusted returns, such as those offered by a diversified basket of commodity exposures.

The ETF Investor - Episode 45 – Actively Managing and Compounding Dividends

One of the most universal investment objectives is the attractiveness of dividends, especially if this can be earned in addition to capital growth, and during times of increased uncertainty the value of dividends in support of total return become even more valuable. Given the high inflationary environment in which we find ourselves, with talks of a possible global recession thrown in, many investors are searching high and low for returns with the hope of preserving capital, especially in real terms.

The ETF Investor - Episode 44 - Active Management and Exchange-Traded Products - the Next Generation

ETFs, ETNs, AMCs – three-letter acronyms that all fall under the umbrella of ETPs (exchange-traded products), but it all sounds complicated and can become quite confusing. As an investor, how do you know which ones to invest in, and should you be concerned about the specific product structure of the investment? Simply put, ETPs offer the ability to diversify your portfolio by being invested in a basket of shares across different sectors and geographies, or get exposure to hard to come by commodities. Actively Managed Certificates, or AMCs, are also considered ETPs, so it offers many of the same benefits, but there are also some pertinent differences.

The ETF Investor - Episode 43 - SRI or ESG? What's the difference?

Socially Responsible Investments, and specifically strategies designed to focus on Reduced Fossil Fuel, are to some extent a subset of a broader ESG focus on investment strategies. On the surface it ticks all the right boxes for retail and institutional investors alike. But what are some of the nuances of which investors should be aware, and how do you assess it for suitability in your investment portfolio, perhaps alongside exposure to physical commodities?

The ETF Investor - Episode 42 - Inflation linked bonds

Inflation has risen sharply around the world due to the twin effects of very accommodative monetary policies and supply chain disruptions post Covid lockdowns, only to be compounded by the sharply higher energy and agricultural prices after the Russian invasion of Ukraine.

The ETF Investor - Episode 41 - Innovation in Healthcare Investments

Investments in healthcare products and services have expanded in recent years to also focus on new technologies and disruptive innovations, as the combination of the Covid pandemic and increased longevity and ageing populations have caused a shift in this traditionally defensive sector. What does this shift towards biotechnology, breakthrough innovations in life sciences and genomics, remote diagnosis and surgical procedures, to name but a few, mean for the investment case for healthcare?

The ETF Investor - Episode 40 - The Bogle Effect

In his recently published book "The Bogle Effect" Eric Balchunas credits Jack Bogle, the father of index investing and founder of the Vanguard Group, with saving investors over one trillion dollars (and counting), thanks to the direct and indirect effects of lower investment costs. Although the low cost structures of index funds take much of the credit, it is the unique mutual ownership structure of Vanguard that serves as the catalyst for investors receiving all the benefits of lower fees.

The ETF Investor - Episode 39 - New China Sectors: Life Beyond Technology & Infrastructure-led Growth

China as an investment destination has challenged the most determined of investors in recent years. The long-term growth prospects and the importance of China in the global investment universe are well established, but the when, what and how to invest in China, remain key questions. The range of options available on the JSE continue to expand, and this latest offering from Sygnia Itrix focus on the "new sectorsï" in the Chinese economy. What are these, and how does it compare to the alternatives already available?

The ETF Investor - Episode 38 - About Unicorns and Actively-Managed Funds

Investments in little-known companies, illusive strategies and futuristic concepts comes with very specific risks, especially in the short-term, but with the appropriate long-term perspective, and alongside more traditional investment options in your portfolio, these could offer diversified and excess performance to investors. Such options are now available via actively-managed funds, and specifically as exchange-traded products, as we await the introduction of AMETFs � Actively Managed Exchange-Traded Funds - on the JSE.

The ETF Investor - Episode 37 - SALTAs 2022, celebrating excellence in the ETP industry

The annual SALTAs (SA Listed Tracker Awards) celebrate the achievements of ETP issuers in South Africa, and gives insight into measuring success for ETFs and ETNs - total return performance, tracking efficiency, capital raising, efficiency in trading, and the flagship People's Choice Award.

The ETF Investor - Episode 36 - How Model Portfolios Work for You

With an ever-growing range of exchange-traded products available on the JSE, ETF investors may find themselves overwhelmed with choice, and how to select a portfolio of ETFs that is consistent with their investment objective, risk tolerance, and time horizon. Model portfolios offer a solution to bridge this gap, but what are these, and how do they work?

The ETF Investor - Episode 35 - India: an Emerging Giant

Investments in emerging markets come in many different forms and until recently, exposure to India - the second-largest emerging market by GDP, and the 6th-largest on a global scale - could only be found as part of a broader emerging market ETF. The Satrix MSCI India Feeder ETF now allows for a more specific investment choice, but what is the current value proposition, and what exposure does it add to your portfolio?

The ETF Investor - Episode 33 - An All Share ETF to Own the Market

The idea to "own the market" by simply buying a Top 40 ETF has evolved over time, as first sector ETFs financials, industrial, resources and later factor-based ETFs, such as dividends, value and momentum - were added to the range. But until this week, ETF investors were not able to buy a single, broad-based JSE All Share index in ETF form. How have the broad-based market indices evolved over time to bring us to this point, and how should you think about "owning the market"?

The ETF Investor - Episode 32 - Bitcoin and cryptocurrency ETFs - what are we waiting for?

"When will we get a Bitcoin ETF in South Africa?" This question is asked with remarkable regularity, especially whenever the prices of cryptocurrencies experience a strong run. So why have we not seen it in South Africa yet, despite several attempts by different ETF issuers? What are the regulatory constraints, and what needs to be put in place before this can become a reality?

The ETF Investor - Episode 31 - ETCs? Exchange Traded Commodities

Commodity ETFs, in some markets referred to as ETCs, derive their price entirely from the price of the underlying commodity, but physical commodities appear to have lost its lustre in recent weeks. Is this just a healthy pullback in a multi-year commodity super-cycle, or is there more to it? Most importantly, how can you invest in YOUR views using ETFs and ETNs?

The ETF Investor - Episode 30 - Building Infrastructure with ETFs

Satrix recently listed its 22nd ETF on the JSE - a Global Infrastructure ETF. There is no doubt that the world is in desperate need of infrastructure investment, partly to replace old and outdated facilities, but also to build a "new" world that is fit-for-purpose. What is infrastructure? Why should you consider investing in it? What value can it bring to your investment portfolio?

The ETF Investor - Episode 29 - ETFs wrapped in ETNs

ETFs and ETNs sound so similar, yet often the only thing they have in common, is that both are exchange-traded investment instruments. In a more recent development though, we now have ETFs that are wrapped in ETNs, thereby offering a combination of the two. How does this work in practise, what do you get when you buy one of these ETNs, and what is the difference between the so-called compo and quanto versions?

The ETF Investor - Episode 28 - Including Diversity in Investments

Diversification in investment portfolios has always been a powerful risk mitigator, but Satrix has taken this concept one step further, and applied it to an investment focus on companies that rate highly on inclusion and diversity in the workplace. In this episode, we explore the Satrix Inclusion and Diversity ETF, and how it may impact on investments.

The ETF Investor - Episode 27 - Global Healthcare: Bringing Health to your Wealth

In this episode we take a closer look at the Sygnia Itrix Solactive Healthcare 150 ETF, and the investment case for healthcare exposure in long-term investment portfolios. How does this compare to other global ETF options already available on the JSE, and how can you decide if it deserves a place in your wealth-building strategy?

The ETF Investor - Episode 26 - Custom Indices in Listed Real Estate

Listed real estate investments have been under quite a bit of pressure over the last year or two, and the global lockdown due to Covid pandemic just added insult to injury. Even global real estate stocks, although arguably more diversified than local investments, were weighed down by the strength in the rand which has appreciated more than 20% against the US dollar over the past year. But not all real estate indices are created equally, and in this industry, forced to adapt very quickly, there is a case to be made for indices that are also more responsive to change. What are custom indices and how do they work?

The ETF Investor - Episode 25 - Dividends, Distributions and Total Return ETFs

The returns we get from investments come in two parts - capital gains (or an increase in the price) and distributions, which could be either dividends or interest. It is easy to see the first part of this return equation, the price changes, from your investment platform or stockbroking account, but how do distributions work for ETFs?

The ETF Investor - Episode 24 - WTF (What The Factsheet!)

Investors are often told to "do your homework", to "understand what you invest in before you do so", or even just  do your own researchï, but what exactly does that mean, and how should ETF investors evaluate an ETF to decide if it's right for you? In this episode we take a closer look at fact sheets, how to read it and identify the important information to help guide your investment decisions.

The ETF Investor - Episode 23 - African Sovereign Bonds and the Balloting Process

In this episode we turn our attention to an asset class that is at best not well understood by most investors, or at worst, a complete unknown, and that is African sovereign bond markets. We also discuss the ballot process required to change the investment strategy of an existing ETF.

The ETF Investor - Episode 22 - Going Truly Global

In this episode we metaphorically dust off our passports to embark on a round-the-world-trip, through a quick reminder of the global ETF investment opportunity set available to South African investors on the JSE, in general, and then taking a closer look at the latest offering in this space, the CoreShares Total World Stock Feeder ETF (share code: GLOBAL).

The ETF Investor - Episode 21 - Global ESG ETF options in SA

In this episode we follow on with the theme of episode 20, being ESG ETF investments, by looking at the specific options available to South African investors on the JSE. Sygnia recently listed the third ESG ETF on the JSE, the Sygnia Itrix S&P Global 1200 ESG ETF. How does this differ from the other two options already available?

The ETF Investor - Episode 20 - ESG - What is it, and Why should you care?

In this episode we focus on ESG investments, as in Environmental, Social and Governance, and how to get exposure to this strongly growing global trend via ETFs. But what is ESG, other than the clarification of the acronym, and why should you care? Is this a trend that is easily captured in index form, and therefore through an ETF, or is this best left to active investment management?

The ETF Investor - Episode 19 - Tesla inclusion in the S&P500, why only now?

In this episode, the final one for 2020, we finish off with a nice Christmas bonus for investors in Tesla. The electric vehicle company will be included in the S&P500 index from the start of trading on Monday 21-Dec-2020. We discuss why now, and what this means for investors in S&P500 ETFs.

The ETF Investor - Episode 18 - ETF FAQs

In this episode we are going back to basics to answer some of the most frequently asked questions. Having said that, even if you are an old hand at ETFs, there may be some new insights for you in this episode, such as investing in cryptocurrencies via ETFs.

The ETF Investor - Episode 17 - 20 Years of ETFs in SA

In this episode we celebrate the 20th birthday of the ETF industry in South Africa, which was born on the 27th of November 2000 when the Satrix 40 ETF was listed on the Johannesburg Stock Exchange. Since then, the industry has seen many firsts, remarkable growth, and broadening opportunity through both the breadth and the depth of the range of products, ETF issuers, investor types and investment strategies that can be accessed via Exchange-Traded Funds.

The ETF Investor - Episode 16 - Global Bond ETFs

In this episode we focus on global bond ETFs, and specifically the six options available on the JSE. This is not intended to be a look at the value proposition of investing in global bonds, but rather a comparative look at the different options, how they differ, and where they are similar.

The ETF Investor - Episode 15 - Gold ETFs and the debenture structure

In this episode we focus on gold investments, and how gold ETFs in particular, give you easy and safe access to the yellow metal whose perceived value dates back at least to Biblical times. For South Africa as a country, an economy, and indeed, a stock market which was built on gold, this is fundamental. Add to this its performance in 2020, and you'll see why this topic is so important and relevant. We also explore the debenture structure, and how it is different from a CIS - a unit trust.

The ETF Investor - Episode 14 - SheInvests

In this episode we commemorate Women's Month in South Africa as we celebrate the strength and resilience of women, the rock of our society. The JSE has interesting research that shows that women engage with investor communication more than men, but when it comes to taking action, they tend to fall short of their male counterparts. Some of the key reasons for this difference is sited as the general lack of education and particularly, of the lack of financial confidence in women. We discuss how ETFs help to bridge this gap.

The ETF Investor - Episode 13 - Exchange Traded Notes

In this episode we shift focus from ETFs, to their lesser known cousins ETNs - Exchange Traded Notes - to see how this type of investment instrument is different from an ETF, and how they are similar. The common denominator here is that they are all traded on an exchange, so the point of access is all the same, but the underlying investment may differ in its construct and the rules and regulations that govern it.

The ETF Investor - Episode 12 - Investing in China

In this episode we travel east, to look at the investment opportunity presented by China, the second largest economy in the world, and the most populous nation on the planet. Satrix will be listing the MSCI China ETF on the JSE on the 22nd of July, offering investors access to this exciting global market, locally. We explore what exposure this ETF offers, and how its costs compare to alternatives.

The ETF Investor - Episode 11 - Fund-of-Funds Structure for ETFs

This episode takes a closer look at different fund structures, and how it affects the way in which the assets in the fund underlying the ETF, is managed - we explore the impact it has on costs and tracking error. Whereas the first ETFs were single asset class, and single market investments, this has evolved to include multi-asset class investments and funds covering multiple jurisdictions and geographic regions, and the fund-of-funds structure is one that brings efficiency and cost benefits to investors.

The ETF Investor - Episode 10 - Investing in Tech

This episode focuses on how one can invest in technology, especially in companies that benefit from the increased demand for online and technology solutions in the light of a change in the way we work, play and shop, due to the Covid-19 pandemic and lockdown. With Wes Hellyar of Moth Innovate.

The ETF Investor - Episode 9 - Dividend Strategies

This episode looks on dividend strategies, how they can be accessed using ETFs, and how they are affected by the wave of dividend deferrals, delays, and even outright cancellations, as companies focus on protecting balance sheets and cash on hand to weather the Covid-19 storm.

The ETF Investor - Episode 8 - Satrix SA Bond ETF new listing

Satrix lists its 16th ETF on the JSE on Thursday 7 May - the Satrix SA Bond ETF. How is this different from other bond ETFs, including inflation-linked bond ETFs? And what is the outlook for SA bonds post the WGBI exclusion?

The ETF Investor - Episode 7 - Standard Bank Oil ETN

In this episode we focus on the Standard Bank Oil ETN to better understand the investment opportunity to get exposure to oil as a commodity. This comes on the back of the historic and unprecedented event of oil prices, and in particular the WTI - the West Texas Intermediate - oil future for May, falling to below zero at the start of this week.

The ETF Investor - Episode 6 - Bond indices, and SA dropping out of the WGBI

This episode focuses on bond indices, how they are constructed, who governs the index rules, and how changes can drive investor demand for specific bonds. There is also specific reference to South Africa being dropped from the FTSE WGBI (World Government Bond Index) at the end of April.

The ETF Investor - Episode 5 - Volatility Managed ETFs from ABSA

ABSA offers a series of ETFs that assist in managing the volatility of equity investments, something that has suddenly become very pertinent in the dramatic sell-off and swings experienced in markets since late February. How do these work, and how can they benefit you in your portfolio?

The ETF Investor - Episode 4 - Investment Strategies during times of Market Crises

Market crises cause anxiety for investors - both retail and professionals - and as much as we cannot control or influence market movements, we can do so with our own reactions to the market turmoil. In this podcast we revisit some rational and prudent investment strategies to help navigate turbulent waters.

The ETF Investor - Episode 3 - etfSA Investor Hub

The etfSA Investor Hub offers investors who want to manage their own ETF investments, and make their own investment decisions, a fully digital platform to do just that. In this podcast, Mike Brown, MD of etfSA, discusses the rationale of taking over the CoreShares Online platform, with Gareth Stobie, MD of CoreShares.

The ETF Investor - Episode 2 - Retirement Annuities

In this episode we take a closer look at using ETFs in retirement savings, and how you can use it to benefit you now by saving tax upfront, how the flexibility of it allows you to build up long term savings whenever you earn money, whether from a regular salary or from ad hoc part-time work or from project-based consulting income, and what to do with it when you reach retirement age.

The ETF Investor - Episode 1 - Tax-free Investment Accounts

In this first episode of The ETF Investor podcast series, we look at tax-free investments, an opportunity that should be the first investment for any investor. But what is it, who can have one, how do you get involved, and of course, how do you use ETFs in tax-free investments.