/ 11 September 2020

JSE lists two new global ETFs

These new ESG ETFs allow investors to pursue environmental, social and governance objectives. (Photo: Delwyn Verasamy)

The Johannesburg Stock Exchange (JSE) is excited to become the first South African stock exchange to list two global ESG focused Exchange Traded Funds (ETFs), the Satrix MSCI EM ESG Enhanced ETF and the Satrix MSCI World ESG Enhanced ETF.

The two ETFs will track the MSCI EM ESG Enhanced Focus Index, and the MSCI World ESG Enhanced Focus Index, respectively. Both these ETFs are designed to maximise exposure to positive environmental, social and governance (ESG) metrics. Both ETFs offer investors the chance to evaluate their desire for emerging or developed market equity and combine it with an aspiration to invest responsibly.

Helena Conradie, Satrix CEO, says: “Investors have a growing desire for their portfolios to reflect good environmental, social and governance principles. These new ESG ETFs allow investors to pursue these objectives while offering global equity exposure across developed or emerging markets.”

As the JSE gets closer to the 20th anniversary of listed ETFs, its total ETF market cap is R107.7-billion. ETFs continue to offer attractive and diverse opportunities for investment. The listing of the Satrix MSCI EM ESG Enhanced ETF and the Satrix MSCI World ESG Enhanced ETF makes this thefourth and fifth ETF listings on the JSE in 2020.   

“We have always been committed to sustainability — 16 years ago we introduced the first exchange-sponsored sustainability index globally, which was also the first sustainability index in emerging markets. We are also a signatory to the United Nations-backed Principles for Responsible Investment and a founding partner of the Sustainable Stock Exchanges Initiative,” says Valdene Reddy, Director of Capital Markets at the JSE.  “Today we are excited to list two global ESG focused ETFs that broaden our investment offerings in a world where environmental, social and governance factors play an integral role in investment decision making. Impact investing has become increasingly topical and for us to provide investors with access to sustainable investment options is a key focus.”

Conradie concludes: “We’ve added five new ETFs to our range this year. These ESG funds expand our global offering and bring the total number of Satrix ETFs to 20.”

With 78 ETFs now listed on the JSE’s Main Board, the bourse continues to be a pioneer in the investment field by providing innovative and diverse investment options for the benefit of both retail and institutional investors.

Earlier this year the JSE expanded its Green Bond Segment to a fully-fledged Sustainability Segment.  The segment provides a platform for companies to raise debt for green, social and sustainable initiatives on a trusted, global market place. The JSE’s Sustainability Segment will make it accessible and easier for companies to list and trade sustainability-related instruments to raise funds for activities directed at sustainable development.