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Visit our FAQ page to find the answers to the most commonly asked questions, including how to create an account, explaining ETFs, and providing useful links, forms, and tables.

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Discover South African
ETFs/ETNs

Invest in JSE-listed Exchange Traded Funds (ETFs) and
Exchange Traded Notes (ETNs) with ThinkMarkets

 

Peace of mind with a multi-award winning, FSCA-regulated global broker

 

Competitive brokerage fee - no hidden costs, no cash withdrawal fee, no admin fee, no minimum deposit requirement

 

Gain exposure to local and international markets and sectors through ETFs, ETNs

Start investing in minutes on our award winning, feature-rich ThinkTrader mobile app

Exchange Traded Funds (ETFs)

You don’t like spending hours on end analyzing shares or other asset types, but you like the flexibility of the way shares are priced and the ease with which they change hands. You also like the idea of easily diversifying your investment exposure, but you don’t want to tie your money down in investment trusts. Are you new to the world of investing?

If this is the case, exchange traded funds may be the ideal choice for you.

Access more than 100 ETFs with ThinkMarkets, and gain exposure to local and international markets and sectors.

What are ETFs?

They consist of a pool (a basket) of assets, such as shares, or it might be bonds, currencies or commodities, or they may track a share index. They help you diversify your investments. They are a low-cost option to spread your risk exposure across various sectors and markets.

How are they bought, sold and priced?

ETFs are listed on a stock exchange and can be bought and sold just like shares. They are priced similarly to equities. Unlike investment trusts or mutual funds, they operate with an arbitrage mechanism designed to keep it trading close to the net asset value of the underlying assets.

How risky are they?

ETFs are considered low to medium risk investments. With exposure to a basket of assets rather than a single instrument the overall risk is reduced, but prices of ETFs go up, as well as down. Other risk factors come from tax rules, or the risk associated with the specific underlying group of assets, e.g. there are more liquid and less liquid pools of instruments. 

You will have further protection as market makers of ETFs ensure you get a fair price, regardless of the quantity you buy or sell.

Exchange Traded Notes (ETNs)

These structured products that also track an underlying index of securities add an element of credit risk. ETNs are issued as senior debt and behave more like bonds than equities.

Who are they for?

They are suited to both individual and professional investors who wish to diversify their exposure. Sometimes individual investors use them as a vehicle to access financial products that are otherwise hard to invest in as an individual.

How do they work?

The investor lends money to the issuer of the ETN, and then receives a return based on the movements in a specific benchmark, such as interest rates, commodity prices, a basket of shares, or bonds or a currency. The issuer promises to pay the amount reflected in the index, minus fees, upon maturity. ETNs also pay regular, stable interest. 

They don’t need to be held to maturity. Investors can buy and sell them at any time. ETNs are highly liquid.

How risky are they?

ETN prices fluctuate and are subject to the same market forces as the underlying assets They are riskier than ETFs, because if the issuer goes out of business, they might lose value, the same way any debt security would. They are suited to investors with higher risk tolerance than ETFs. 

Did you know that you can also invest in shares?

Security

ThinkMarkets is a global broker, authorized and regulated by the FSCA, the FCA and the ASIC.

Safety and Ease of Funding

Your money and shares are always held in a secure, ringfenced trust account, with you as the owner on record. 

Low Cost Investing

ThinkMakets offers one of the most competitive cost structure in South Africa, with low brokerage fee and no hidden costs.



Need more information on ETFs, ETNs, investing in equities directly, account opening or our platforms?
 

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