Albert Nangara, a Chemical Technologist and Author, has compiled a list of Exchange Traded Funds (ETFs) on the Zimbabwe Stock Exchange.
He says investing in ETFs or exchange-traded funds is equivalent to investing in all components that are part of an index directly.
An exchange-traded fund (ETF) is a marketable security that tracks an index, sector, commodity, or another asset which can be purchased or sold on a stock exchange the same way a regular stock can.
Here is the list of Exchange Traded Funds (ETFs) on the Zimbabwe Stock Exchange (ZSE):
Old Mutual Zimbabwe ZSE Top 10 ETF
Pan-African financial services group Old Mutual introduced the Old Mutual Zimbabwe ZSE Top 10 ETF. The fund tracks the ZSE Top 10 Index, which consists of the largest ten companies, as ranked by investable market capitalization, listed on ZSE. CABS Custodial Services is the fund’s custodian, while Stanbic Bank is the trustee. The constituents reflect the ZSE Top Ten Index, independently calculated and managed by the Zimbabwe Stock Exchange. Rebalancing of the ETF is done every quarter.
Morgan & Co Multi-Sector ETF
The Morgan & Co Multi-Sector ETF is Zimbabwe’s first actively managed exchange-traded fund. According to the Morgan & Co website, the Morgan & Co Multi-Sector ETF is an actively managed ETF with the goal of beating the ZSE All Share while boasting a low-cost structure. The ETF aims to earn alpha for investors by taking long positions in fundamentally undervalued sectors. The ETF is benchmarked against the ZSE All Share Index.
Morgan & Co Made In Zimbabwe ETF
The Morgan & Co Made In Zimbabwe ETF is an actively managed fund which primarily invests in Zimbabwean manufacturing companies. Normally, at least 80 per cent of the fund will be invested in Zimbabwe-based manufacturing companies whose revenues are primarily derived from manufacturing processes, while 20 per cent may be invested in companies who fall outside of this scope. Zimnat Asset Management’s manager primarily allocates the fund’s portfolio investments using a proprietary model developed by Morgan & Co.
Datvest Modified Consumer Staples ETF
The Datvest Modified Consumer Staples Exchange Traded tracks the performance of the Zimbabwe Stock Exchange listed companies within the consumer staples. According to a prospectus statement for the Datvest ETF, CBZ Asset Management have initial seed capital in the form of scrip in the exact weights of the ZSE Modified Consumer Staples Index.
The table shows the counters that are held by the Datvest Modified Consumer Staples ETF and their respective weights. (Photo/ CBZ) The counters comprising the Datvest ETF are predominately from consumer stocks such as Delta, Innscor, National Foods, Meikles, Simbisa Brands, OK Zimbabwe, TSL, Dairiboard, and African Distillers.
Cass Saddle’s Agriculture ETF
The ETF, which was listed by introduction, took off with a seed capital of $36 199 404 and became the fifth overall securities listing on the ZSE this year after it was officially registered. Cass Saddle is an agri-focused asset management company that is licensed by the Securities and Exchange Commission of Zimbabwe (SECZim). The asset manager offers Institutional Fund Management, Individual Wealth Management, Investment services and advisory.
Meanwhile, at the end of the last weekday of trading on the ZSE, a total of 900, 500 shares, corresponding to a market value of ZWL 41,042,437.88, were traded.
Zimbabwe became the fifth country in Africa to list an ETF, with South Africa, Nigeria, Kenya, and Egypt also currently trading the instrument.