Surge in Demand for Actively Managed ETFs in South Africa

The actively managed ETF market in South Africa is expanding rapidly, with 28 funds launched since 2022, and further growth anticipated. Ben Meyer predicts an additional 25 funds may be listed in the coming year, driven by the demand for offshore investment opportunities.

The actively managed exchange-traded fund (ETF) market in South Africa is experiencing significant growth, attracting investors eager to capitalize on international opportunities. According to Ben Meyer, the Managing Director at Prescient Structured Products Advisory, the market may see the listing of an additional 25 funds within the next year, reflecting the robust demand for these investment vehicles.

Since the Johannesburg Stock Exchange (JSE) approved the listing of actively managed ETFs in 2022, a total of 28 funds have been introduced to the market. These ETFs primarily focus on offshore investments, highlighting a trend in South African investor preferences switching towards global exposure.

In summary, the South African market for actively managed ETFs is on a promising upward trajectory, fueled by investor interest in global investment opportunities. The JSE’s recent facilitation of such funds signifies a substantial shift in investment strategies. With expectations for new fund listings in the near future, it is evident that actively managed ETFs are becoming an increasingly popular choice among investors in South Africa.

Original Source: citywire.com