Old Mutual Exchange Traded Funds lists on the ZSE

Author Name
Respect Gwenzi
Markets 9 months ago
  • Old Mutual ETF debuts on the ZSE
  • Makes history as the first ETF to be traded on the ZSE
  • More ETF listings expected in the near future

Old Mutual became the first entity to successfully list and trade Exchange Traded Funds (ETFs) on the Zimbabwe Stock Exchange, after trades valued at $4,74 million were completed as the market resumed post holidays.

Prior to the introduction of ETFs, the ZSE traded only in plain vanilla instruments such as individual stocks. ETF’s are passively managed, fully funded (unleveraged) open ended funds which track the performance of a specified security which include but are not limited to indices, commodities, currencies or any other asset.

Old Mutual Zimbabwe through its subsidiary Old Mutual Investment Group became the first to establish an ETF but one which tracks the Zimbabwe Stock Exchange (ZSE) Top Ten Index.

The ZSE Top Ten Index consists of the top ten counters by market capitalisation that are listed on the ZSE.

In debut trades the OM ETF opened at ZWL$1 and closed at ZWL$1.0022 with a total of 41 trades sailing through. The total volume traded came in at 4,732,234 to arrive at the aforementioned turnover of $4,74 million.

ETFs are typically found in developed markets and closer home, South Africa’s JSE has a total of 78 ETFs having introduced these 21 years ago.

The JSE traded ETFs range from broad local equity market exposure, local and global debt, local and global property exposure, access to precious metals, Africa (ex-SA) equity ETFs and Smart Beta ETFs.

It is expected that more money managers in Zimbabwe will soon introduce their ETFs to the market.

An ETF can be bought or sold in the same way as an ordinary Share. ETFs are ideal for any investor wishing to gain exposure to different sectors, asset classes, both locally and globally.

The simplicity and affordability of this investment vehicle allows investors to grow their wealth and get first-hand access to the world of investing through the stock exchange. They also provide a solution to those who are new to investing and looking to build wealth through the stock market.





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