
SA's ETF scene explodes: What's hot, what's the next big thing in trackers - ETF heavyweight speaks to BizNews Radio
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South Africa's Exchange Traded Funds (ETFs) are mushrooming as investors snap up exposure to global market indices and assets like gold for as little as R125/month. In 2000, the first EFT was launched. There are now about 105 ETFs and ETNs, issued by about a dozen companies, with more than R90bn invested in these funds. It is the biggest product of its type outside unit trust funds, and is bigger than the private equity and hedge fund sectors. The market capitalisation of the ETF sector jumped by about 20% over the past year. In this interview with BizNews Radio, ETF entrepreneur Mike Brown of etfSA.co.za explains why ETFs are hotting up as an investment option. He picks up on the types of ETFs that are becoming popular, those that are producing tantalising returns for investors and explains how smart beta funds - the sexy new investment option in passive investing internationally - work. If you are looking for investment ideas and want to narrow your choice between more than 100 ETFs available in South Africa, this podcast should be your first stop on the journey to identify an investment vehicle. - Jackie Cameron