Sygnia overtakes Satrix as second largest ETF player
The JSE’s number of exchange-traded funds (ETFs) has grown by 12 so far in 2018, taking the total to 74. Sygnia has overtaken Sanlam — which owns the Satrix range of ETFs — as the second largest player in the local exchange-traded product market, and is rapidly gaining on Absa’s lead, etfSA.co.za MD Mike Brown said in an industry update e-mailed on Wednesday. The number of exchange-traded notes (ETNs) trading on the JSE has remained constant at 20 this year. Exchange-traded products is an umbrella term for ETFs and ETNs. The two differ in that ETFs have to own the underlying commodities, share portfolios or whatever they represent, whereas ETNs do not. "A JSE-listed ETF has to be 100% physically covered at all times, through the exact replication of the index being tracked, so tracking error and volatility is minimised. An ETN does not require full replication, which puts recourse on the creditworthiness of the ETN issuer. In an ETF, where all liabilities are fully covered at all ti...
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