Sygnia has today listed on the Johannesburg Stock Exchange (JSE) the Sygnia Itrix Sustainable Economy Exchange Traded Fund (SYGSE), expanding the suite of Exchange Traded Funds (ETFs) that the financial services provider is offering to investors looking for offshore investment diversification.
The ETF tracks the S&P Kensho Sustainable Technologies Index, which measures the performance of companies with exposure to smart transportation and manufacturing, sustainable agriculture, clean power, space exploration, intelligent infrastructure, and the technologies that enable remote working.
“Finding themes that provide growth in a low-growth world is critical to successful investing, and innovation stocks focused on building a sustainable economy present key opportunities,” says Kyle Hulett, Head of Investments at Sygnia.
The listing of SYGSE happens at a time the JSE is preparing to usher in new amendments to its listings requirements, paving the way for issuers to list and trade Actively Managed ETFs (AMETFs) for the first time in the bourse’s history.
The amendments will come into effect on 14 October 2022 and are expected to stimulate the growth of the ETF sector, which after today’s listing of SYGSE has seen listed ETFs growing to 94 with an ETF market capitalisation exceeding R114 billion.
AMETFs are funds that are traded on the market in which the investment manager uses an active investment strategy to produce a return for the investor instead of passively tracking an index or other type of asset. Traditionally, ETFs listed on the JSE are passively managed.
Valdene Reddy, Director of Capital Markets at the JSE, says she is pleased that issuers are continuing to flock to the JSE, giving South African investors an opportunity to diversify their portfolios while fulfilling their environmental, social, and governance (ESG) investment objectives.
“The JSE is a magnet for ETF issuers who take seriously their responsibility to strike a balance between generating returns for investors and addressing ESG related concerns. Investors have the opportunity to invest in ETFs like SYGSEO and gain exposure to the underlying companies who contribute towards growing a sustainable economy,” concludes Reddy.
