ETF Products
Exchange Traded Funds – Main Features
Each share of an exchange traded fund (ETF), also called "Trackers", represents ownership in a fund that holds a portfolio of securities designed to track the performance of a specified index. The performance of the shares closely mirrors the performance of any of the NR Product Indexes, including dividend payments. Unlike traditional funds, ETFs are listed on a recognised exchange and traded throughout the business day.
Index Tracking Funds – The Rationale
ETF's that track any of our NR Product Indexes, offers returns that are superior on a highly consistent basis with lower risk of volatility. The value of using ETF linked NR Indexes is that they largely eliminate the volatility of returns that comes from extreme single stock exposure, non-diversification and emerging market investment risk.
By linking a Fund to our Indexes and listing this on an Exchange, the real reduction of risk comes without any loss in expected return over the investment cycle and therefore should offer an attractive alternative investment to investors with higher risk adjusted return goals.
Some of the Exchanges we deal with are the (i) London Stock Exchange (LSE), (ii) Johannesburg Stock Exchange (JSE), (iii) New York Stock Exchange (NYSE), (iv) Egyptian Stock Exchange (EGX) and the (v) Stock Exchange of Mauritius (SEM).
Benefits of an ETF:
- Track the level of the Index
- Traded during the day
- Pay regular dividends
- Are priced generally close to net asset value
- Differ from passive unit trusts because they are listed and trade continuously
- Have low annual management fees (i.e. between 1% & 0.5%)
- Are exempt from stamp duty in most jurisdictions
- Can be used to gain exposure to foreign markets without incurring overseas costs
- Can be held within a tax efficient vehicle (such as an ISA/Pension Fund)
- Over 300 funds available globally with assets of over US$230bn
In Summary
ETFs are funds that replicate a Benchmark Index or Product Indexes with a benchmark approach. NR Indexes & Ratings has experience in delivering Index solutions to Banks and Asset Managers looking to launch ETF's on Global Exchanges. Moreover, investing in ETFs can significantly reduce equity-specific risk in a portfolio, as they can be traded like an individual share.
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If you require more information about Exchange Traded Funds linked to our ETFs and their Index Fact Sheets please register and complete a feedback form.
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Global X Africa NR30:
(a) Index Fact-Sheet (pdf)
(b) ETF White Paper (pdf)
(c) Index Data-Sheet (xls)
CI Egypt ETF:
(a) Index Fact-Sheet (pdf)
(b) CICH Index Analysis (pdf)
(c) Index Data-Sheet (From Launch Date) (xls)
(d) Index Data-Sheet (3 Yr Backtest) (xls)
Johannesburg Stock Exchange (JSE) Index Listing:
(a) Data Flow Schematic (pdf)
(b) Index Provider Requirements (pdf)
New York Stock Exchange (NYSE) Index Listing:
(a) Data Flow Schematic (pdf)
(b) Index Provider Requirements (pdf)
The datasheets above are freely available to registered users on request please This email address is being protected from spambots. You need JavaScript enabled to view it. your request.
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