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Absa Capital Exchange Traded Products

Absa Capital Exchange Traded Products

ABSA Capital has a range of Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs) designed to provide investors with investment opportunities to access the returns of market benchmarks or strategies. Absa Capital Exchange Traded Funds and Exchange Traded Notes expose investors to a variety of asset classes such as balanced, cash, currencies, commodities, equity and fixed income.

Selection of available ABSA Capital Exchange Traded Funds

Absa NewFunds Momentum Equity ETF

The Momentum Equity ETF aims to capture returns from the short term price momentum observed in the South African equity market. It tracks the performance of the Barclays Capital/Absa Capital South Africa Equity Momentum Index, a total return index, comprising South Africa equity market shares ranked by their relative price momentum over the assessment period where shares with higher relative price momentum are given higher weightings.

The initial universe is always filtered based on total market capitalisation and liquidity (measured by three months average value traded). Both filters are inflation adjusted on a yearly basis to ensure better tradability.

The remaining stocks are filtered based on relative momentum and any stock with negative value is excluded before the ranking takes place. Stocks are ranked in descending order based on relative momentum and top 40 ranked shares are selected.

Absa NewFunds S&P GIVI SA Top 50 ETF

The NewFunds S&P GIVI SA Top 50 ETF offers investors a diversified exposure to fifty largest JSE-listed stocks selected by intrinsic value and low volatility, at lower costs.

NewFunds S&P GIVI SA Top 50 ETF replicates the price performance of the S&P GIVI SA Top 50 Index, an Index which represents the fifty stocks from the S&P GIVI SA composite with the largest intrinsic value and lower volatility, subject to certain constraints such liquidity and market capitalisation of stocks.

Absa NewFunds S&P GIVI SA Financial 15 ETF

NewFunds S&P GIVI SA Financial 15 ETF offers investors a diversified exposure to fifteen largest JSE-listed financial stocks selected by intrinsic value and low volatility,at lower costs.

NewFunds S&P GIVI SA Financial 15 ETF replicates the price performance of the S&P GIVI SA Financials Index, an Index which represents the fifteen stocks from the S&P GIVI SA composite having a GICS sector classification of financials with the highest intrinsic value and lower volatility, subject to certain constraints such as liquidity and market capitalisation of stocks.

Absa NewFunds S&P GIVI SA Industrial 25 ETF

The NewFunds S&P GIVI SA Industrial 25 ETF offers investors a diversified exposure to twenty-five largest JSE-listed industrials stocks selected by intrinsic value and low volatility,at lower costs.

NewFunds S&P GIVI SA Industrial 25 ETF replicates the price performance of the S&P GIVI SA Industrials Index, an Index which represents the twenty-five stocks from the S&P GIVI SA composite having a GICS sector classification of industrials with the highest intrinsic value and lower volatility, subject to certain constraints such liquidity and market capitalisation of stocks.

Absa NewFunds S&P GIVI SA Resource 15 ETF

The NewFunds S&P GIVI SA Resource 15 ETF offers investors a diversified exposure to fifteen largest JSE-listed resources stocks selected by intrinsic value and low volatility,at lower costs.

NewFunds S&P GIVI SA Resource 15 ETF replicates the price performance of the S&P GIVI SA Resources Index, an Index which represents the fifteen stocks from the S&P GIVI SA composite having a GICS sector classification of energy or materials with the highest intrinsic value and lower volatility, subject to certain constraints such as liquidity and market capitalisation of stocks.

Absa NewFunds GOVI ETF

The The GOVI ETF tracks the total return version of GOVI Index, an index consisting of bonds issued by the South African Government which includes only those issues in which the Department of Finance obliges the primary dealers to make a market and constituting the GOVI.

The GOVI is calculated daily by the JSE.The GOVI ETF is suitable for investors seeking low-cost convenient alternatives to traditional non-listed products. The GOVI ETF can act as a building block for investors to use when constructing their own portfolios..

Absa NewFunds ILBI ETF

The ILBI Exchange Traded Fund provides investors with a convenient and cost-efficient way to gain exposure to the performance of de facto SA Government inflation bond benchmark index - the Barclays Capital/Absa Capital South African Government Inflation-linked Bond index (the ILBI Index).

The ILBI Index is a total return index comprising SA bonds issued by the South African government that are linked to the South Africa Consumer Price Index. The index is rebalanced monthly to reflect any inflation changes and coupons are also reinvested on a monthly basis to provide a total return fund.

Absa NewFunds MAPPS Growth ETF

NewFunds MAPPS™ was created by Absa Capital, a division of Absa Bank Limited and issued under the NewFunds Collective Investment Scheme (NewFunds CIS), a collective investment scheme registered in terms of the Collective Investments Schemes Control Act, 2002.

NewFunds MAPPS™ is a uniquely designed portfolio range of ETFs. Unlike traditional ETFs which provides exposure to one index or asset class, the NewFunds MAPPS™ suite of ETFs is designed to provide investment returns based on the appropriate asset allocation for investors at different stages of life. In addition, it offers risk diversification benefits due to its exposure to a spectrum of asset classes. The underlying asset allocation combines sophisticated proprietary research and investment expertise into a cost-effective, easy-to-understand investment solution managed within the framework of Regulation 28 of the Pension Funds Act, 1956 (Regulation 28).

The MAPPS™ Growth ETF is aimed at investors with a longer time horizon (e.g. younger investors) who are willing to accept higher variability of returns in exchange for the prospect of long-term real investment returns.

Absa NewFunds MAPPS Protect ETF

NewFunds MAPPS™ was created by Absa Capital, a division of Absa Bank Limited and issued under the NewFunds Collective Investment Scheme (NewFunds CIS), a collective investment scheme registered in terms of the Collective Investments Schemes Control Act, 2002.

NewFunds MAPPS™ is a uniquely designed portfolio range of ETFs. Unlike traditional ETFs which provides exposure to one index or asset class, the NewFunds MAPPS™ suite of ETFs is designed to provide investment returns based on the appropriate asset allocation for investors at different stages of life. In addition, it offers risk diversification benefits due to its exposure to a spectrum of asset classes. The underlying asset allocation combines sophisticated proprietary research and investment expertise into a cost-effective, easy-to-understand investment solution managed within the framework of Regulation 28 of the Pension Funds Act, 1956 (Regulation 28).

The MAPPS™ Protect ETF is aimed at investors with a shorter time horizon (e.g. closer to retirement) and a lower tolerance for return variability. Investors in the MAPPS™ Protect ETF would prefer a more stable return stream.

Absa NewPlat ETF

The NewPlat ETF offers investors an opportunity to gain exposure to the rand performance of platinum. The debentures are backed by physical platinum bullion, with each debenture approximately equal to 1/100th of a troy ounce of platinum bullion. The ETF tracks the rand price of the metal and is classified by the South African Reserve Bank as a domestic investment, thus not affecting the foreign exposure limits normally applicable to institutional investors and authorised dealers.

Absa NewGold ETF

NewGold offers investors the opportunity to invest in gold bullion as it tracks the rand price of gold. NewGold issues listed instruments (structured as debentures) backed by physical gold and the value of a NewGold debenture will rise or fall in accordance with the fluctuations in the rand price of gold bullion. Each debenture is backed by physical gold approximately equivalent to 1/100 ounces of gold bullion, which is held with a secure depository on behalf of investors. NewGold charges an annual fee of 0.4% of the value of the gold bullion held in custody in order to meet its operating expenses.

NewGold debentures are listed on the Johannesburg (JSE), Botswana (BSE) and Nigerian Stock Exchange (NSE) and may be secondary listed on the Ghana (GSE), Uganda (USE), Mauritius (SEN) and Zambia Stock Exchange (LuSE).

Absa NewGold Palladium ETF

The NewGold Palladium Exchange Traded Fund provides investors with the opportunity to obtain exposure to the rand performance of palladium. Each debenture is fully backed by physical palladium bullion, with each debenture approximately equivalent to 1/100th of a fine troy ounce of palladium bullion. As the fund is based on physical bullion, it offers a market related performance or return. NewGold Palladium ETF is classified as a domestic investment meaning that it does not affect foreign exposure limits.

Absa NewFunds NewSA ETF

NewSA tracks the performance of the NewSA Index, a modified Top 40 index that weights the top 40 JSE listed companies in accordance with their empowerment ratings (as measured by Empowerdex, an independent empowerment rating agency). These ratings are calculated according to the Department of Trade and Industry's Codes of Good Practice on B-BBEE, which take into account the seven pillars of transformation: ownership, management, employment equity, skill development, preferential procurement, enterprise development, and socio-economic development. The NewSA index is independently calculated by the FTSE (FTSE International Limited and the JSE (JSE Limited) and updated daily.

Absa NewFunds Shari'ah Top 40 ETF

The NewFunds Shari'ah Top 40 tracks the Shari'ah Top 40 jointly established by London's FTSE International Limited (FTSE) and Johannesburg's JSE Limited (JSE).

This FTSE/JSE Shari'ah Top 40 is designed to reflect the Shari'ah compliant companies identified from the top 40 companies listed on the main board of the JSE as measured by market capitalisation. A dual step Yasaar Ltd (Yasaar) approved screening process is undertaken by the FTSE and the JSE and verified by Yasaar to ensure that all companies included in the index are Shari'ah complaint. Yasaar Research Inc. scholars represent all of the major Shari'ah schools of thought, creating a best practise approach that has credibility across all regions of the Islamic world.

Absa NewFunds SWIX 40 ETF

The SWIX 40 ETF is designed to track the performance of the FTSE/JSE SWIX 40 Total Return Index. The SWIX 40 index is a shareholder weighted Top 40 Index, which makes use of the share register of the top 40 companies listed on the main board of the JSE. In addition, the SWIX 40 Index is adjusted for cross-holdings and strategic holdings.

The impact is to reduce the weightings of mainly resource and dual-listed stocks in the Top 40 Index.

Absa NewFunds TRACI 3 Month ETF

The NewFunds TRACI 3 Month ETF was the first money market ETF to be launched on the JSE. The fund tracks the performance of the Barclays Capital/Absa Capital ZAR Tradable Cash (TRACI) Index (three month). Most existing money market unit trusts are typically benchmarked against STEFI, a non-investable benchmark.

The Barclays Capital/ Absa Capital TRACI indices, in comparison, are fully investable and constructed to track the overnight, 3-month, 6-month and 12-months SA money market deposit rates. The TRACI indices measure the mark-to market value of the income earned from rolling a money market deposit for the relevant maturity on a monthly basis. The indices maintain a constant maturity and track the present value of deposit accounts.



Absa Capital has established the NewWave series of exchange traded notes, a range of investments designed to give investors exposure to the performance of various asset classes, including commodities. The NewWave ETN Programme is an issuance programme of Absa Bank Limited (Absa Bank) in terms of which various classes of ETNs are issued and listed on the JSE Limited. The exchange traded funds constitute unconditional, unsecured and unsubordinated obligations of Absa Bank. Absa Bank is an affiliate of Barclays Bank PLC which lists and issues iPath exchange traded notes on various exchanges around the world with features similar to NewWave ETNs.

Selection of available ABSA Capital ETNs

Absa NewWave Euro ETN

Each NewWave Euro Currency ETN is designed to provide investors with an easy to access and liquid investment in euros, similar to having a currency deposit account with a financial institution.

Each note equals a fixed principal amount of 1 Euro and will accrue interest on a daily basis at the overnight LIBOR rate minus a 0.10% interest rate spread. Interest is distributed on a half-yearly basis. The ETN accrues interest on a daily basis at the overnight LIBOR rate minus an applicable interest rate spread. Interest is distributed on a half-yearly basis.

Absa NewWave GBP ETN

Each NewWave GBP Currency ETN is designed to provide investors with an easy to access and liquid investment in British pounds, similar to having a currency deposit account with a financial institution. Each note equals a fixed principal amount of 1 British pound and will accrue interest on a daily basis at the overnight LIBOR rate minus a 0.10% interest rate spread. Interest is distributed on a half-yearly basis. The ETN accrues interest on a daily basis at the overnight LIBOR rate minus an applicable interest rate spread. Interest is distributed on a half-yearly basis.

Absa NewWave US Dollar ETN

The NewWave US Dollar Currency ETN is designed to provide investors with an easy to access and liquid investment in US dollars, similar to having a currency deposit account with a financial institution. Each note equals a fixed principal amount of 1 US dollar and will accrue interest on a daily basis at the overnight LIBOR rate minus a 0.10% interest rate spread. Interest is distributed on a half-yearly basis. The ETN accrues interest on a daily basis at the overnight LIBOR rate minus an applicable interest rate spread. Interest is distributed on a half-yearly basis.

Absa NewWave Platinum ETN

The NewWave Platinum ETN is designed to provide investors with cost-effective exposure to the spot price of platinum in a listed instrument trading on the JSE in South African rand. Each NewWave Platinum ETN is equivalent to 1/100th of an ounce of platinum bullion (less investor fees).

NewWave precious metal exchange traded notes, launched by Absa Capital in February 2012, enable investors to gain exposure to a return from investing in precious metals without the necessity of directly trading and storing precious metals. According to the Absa website, the NewWave Precious Metal ETNs were the first ETNs in the SA market that referenced the spot price of precious metals, providing direct exposure to the price performance of the underlying precious metal.

Other commodity ETNs currently listed in the SA market track performance of the underlying commodities futures indices. This exposes investors to an additional risk factor related to the tracking of futures indices – the possibility of the futures index underperforming the spot price of the underlying commodity due to negative roll yield.

Absa NewWave Silver ETN

The NewWave Silver ETN was designed to provide investors with cost-effective exposure to the spot price of silver in a listed instrument denominated in South African rand. Each NewWave Silver ETN is equivalent to 1/100th of an ounce of silver bullion (less investor fees).

NewWave precious metal exchange traded notes, launched by Absa Capital in February 2012, enable investors to gain exposure to a return from investing in precious metals without the necessity of directly trading and storing precious metals.

According to the Absa website, the NewWave Precious Metal ETNs were the first ETNs in the SA market that reference the spot price of precious metals, providing direct exposure to the price performance of the underlying precious metal. Other commodity ETNs currently listed in the SA market track performance of the underlying commodities futures indices. This exposes investors to an additional risk factor related to the tracking of futures indices – the possibility of the futures index underperforming the spot price of the underlying commodity due to negative roll yield.

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