Sygnia launches AI exchange-traded fund on the JSE

Sygnia became the first asset manager in SA to launch an actively managed exchange-traded fund (AMETF) focused on tech and artificial intelligence (AI) when the new Sygnia Itrix FANG.AI AMETF went live on the JSE recently. 

The move follows the JSE’s October 2022 decision to allow AMETFs, which has allowed Sygnia to make active investment in the high-growth tech and AI space easier for the average investor.

The objective of the new Sygnia Itrix FANG.AI AMETF is to provide a simple vehicle to investors wanting to gain exposure to companies that use advanced technologies to acquire and retain users — including industry disrupting technologies like AI, large language models (LLM), cloud storage, big data, social media and e-commerce tools. 

The portfolio is actively managed, and its holdings depend on a number of factors, including its underlying NYSE FANG+Index benchmark. Importantly, though, the portfolio is not obliged to hold all the benchmark constituents, enabling Sygnia portfolio managers to exclude or include stocks based on current and thematic indicators. 

Innovative AI investment duo: unit trust and AMETF

Investors can get exposure to these AI themes and leading technology companies via the unit trust fund (Sygnia FAANG Plus Equity Fund) or the AMETF (Sygnia Itrix FANG.AI AMETF). Both are actively managed funds that invest in the same stocks and the management cost for both is set at 0.7%; the only difference is the investment vehicle itself.

There are two major differences between these two investment vehicles: one is listed on the JSE and can be tracked real time and the other is not listed — a unit trust priced once a day.

AMETFs on the JSE enable South Africans to invest in offshore companies at the click of a button. Plus, investors can track performance in real time at any time of the day. 

A new era of AI investment

The new Sygnia Itrix FANG.AI AMETF is the 16th iteration in Sygnia’s Itrix range on the JSE. The asset manager is known for innovative products, notably the Sygnia Itrix line-up of ETFs that offer exposure to offshore markets. Therefore, introducing this AI-focused fund as Sygnia's first AMETF aligns perfectly with the company's identity.

Sygnia has seen a lot of growth, particularly in the LLM sector and its related industries, including semiconductors and innovative cloud storage providers. 

With the new Sygnia Itrix FANG.AI AMETF, the asset manager is making it easier for South African investors to get instant exposure to high-growth tech and AI stocks, then sit back and reap the benefits while Sygnia’s portfolio managers do all the work. 

This article was sponsored by Sygnia.