Over the past two decades, exchange-traded funds (ETFs) have evolved from a niche investment product into one of the fastest-growing pillars of global capital markets. According to the Investment Company Institute (ICI), global ETF assets surpassed $13 trillion in 2024, with over 10,000 products listed worldwide \u2013 a remarkable rise from just $1 trillion in 2009.<\/p>\n
South African investors are onto ETFs, too. According to the JSE, \u201cbetween 2019 and 2024, the number of ETFs listed at the JSE increased by 35% from 74 to 103. Over the same period, the market capitalisation of ETFs also increased by a staggering 147% from R68 billion to R167 billion.\u201d<\/p>\n
Why are ETFs considered the ideal investment tool for today\u2019s globally connected, cost-conscious investors? Here are six compelling reasons.<\/p>\n
ETFs can be designed to be extremely cost-effective. This is especially the case with index-tracking funds, such as the 1nvest products. These ETFs track major indices. This means active fund managers are not paid to build complex strategies. It is kept simple.<\/p>\n
What you see is what you get \u2013 and you get to see it all. We tell you exactly what is in each ETF. Be it a bundle of shares, a blend of bonds and shares, or a single metal like rhodium, you know exactly what is in your ETF. This transparency builds confidence and helps investors make informed decisions.<\/p>\n
One of the biggest attractions of ETFs is that nearly any asset can be wrapped into one. We offer ETFs that hold local and international shares, government bonds, and even commodities like gold and platinum.<\/p>\n
ETFs trade on exchanges just like shares, meaning investors can buy and sell them online with the click of a button. ETF\u2019s are listed on the JSE \u2013 one of the world\u2019s oldest stock exchanges. Investors can check the market price at any time. Although these products are best suited to long-term investing, you can buy and sell easily.<\/p>\n
Thematic and ESG-focused ETFs allow investors to align their portfolios with their personal values and long-term convictions. The 1nvest MSCI World Socially Responsible Investment Index Feeder ETF, lets you invest in businesses that are consistent with your values and climate change-based criteria. This fund also actively excludes companies that operate in industries such as tobacco, firearms, and gambling.<\/p>\n
With ETFs, investors can diversify far beyond their home market. From developed markets like the US and Europe to emerging growth stories in Asia and Africa, ETFs provide cost-effective global access. South African investors, for example, can gain exposure to everything from the S&P 500 \u2013 see the 1nvest S&P500 Index Feeder ETF \u2013 to emerging economies and tech in Asia \u2013 check out the 1nvest MSCI EM Asia Index Feeder ETF .<\/p>\n","protected":false},"excerpt":{"rendered":"
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