Today the CoreShares S&P Global Dividend Aristocrats Exchanged Traded Fund (ETF) listed on the Johannesburg Stock Exchange (JSE), broadening the exchange's offering of innovative ETFs which provide investors with an affordable means to get exposure to a range of geographic regions and investment strategies.
The CoreShares S&P Global Dividend Aristocrats ETF will trade in Rand on the JSE but will invest globally, based on the S&P Dow Jones Indices Dividend Aristocrats® methodology. This methodology is run in numerous markets and aims to capture those companies that have demonstrated a strong track record of paying and growing their dividends. It invests in more than 275 shares across 24 countries. These countries include the USA, UK, Canada, Germany, China, Japan, India and Australia.
Prejelin Naggan: Head of Primary Markets at the JSE says the exchange is excited to offer an even broader range of innovative exchanged traded funds (ETFs) which provides investors with access to low cost passive investment products incorporating active investment management expertise. "The JSE is proud to provide a platform for our clients to list products that not only give South Africans exposure to companies listed on our own exchange, but also to global markets. The local ETF industry is also continuing to develop more innovative products which allow investors to benefit from expert insights and strategies – such as identifying stable companies with growing dividends – at much lower costs."
The listing comes after the success of the local CoreShares Dividend Aristocrats ETF, launched in 2014. Gareth Stobie, managing director of CoreShares, says they are delighted to further broaden their ETF product set. "South African investors will be able to use the JSE to access this classic investment approach which focuses on quality global companies which have a strong track record of delivering consistent and growing dividends through various economic cycles."
ETFs are investment products which put together an investment portfolio of shares or other assets like bonds and commodities based on what can be described as a fixed recipe. The ingredients for this recipe is usually determined by an underlying index of companies – in this case the S&P Global Dividend Aristocrats Custom Index. The ETF tracks the value of the underlying index by investing in the companies that make up the index in the same ratio to each other as they are in the index, just like a recipe providing the list of ingredients and amounts of each ingredient to use.
They are currently 64 ETFs listed on the JSE with a total market capitalization of R72.8 billion. "ETFs are playing an increasingly important role in opening up the world of investing to ordinary South Africans as these products are not only easy to understand, but also allows them to start investing through an affordable monthly contribution," says Naggan.
