Are AMETFs the Next Big Thing in Your Portfolio?

David Oberholzer, AMETF Architect at EasyETFs, introduces Actively Managed ETFs (AMETFs), a new kind of investment that’s quickly gaining popularity in South Africa. As EasyETFs gets ready to launch its own AMETFs, David explains how these products combine the best features of traditional ETFs with expert management, offering investors more flexibility, transparency, and the potential to achieve better returns.

In recent years, the investment landscape was abuzz with discussions around index tracking, passive investing, portfolio diversification, and particularly the low-cost benefits that ETFs offer. 

Just when you thought you’d heard it all – and perhaps tuned out – a product whose launch was overshadowed by the 2008 financial crisis is making its mark: Actively Managed ETFs, or AMETFs. These AMETFs are redefining the investment universe by blending the best of two worlds: the agility of traditional ETFs and the strategic expertise of active portfolio management.

Introducing EasyETFs: Your Gateway to Next-Gen Investments
At EasyETFs, we’re at the forefront of this evolving landscape. Our mission is to make investing more accessible, dynamic, and transparent. With the upcoming launch of our own EasyETFs' AMETFs, we’re looking to share our insights on what we expect from these innovative products and how they can benefit investors.

Why AMETFs Matter
Actively Managed ETFs are gaining attention for good reasons. They combine the flexibility and cost-efficiency of traditional ETFs with the added benefit of active management. Enabling investors to leverage the expertise of seasoned fund managers who actively select and manage the assets within the ETF, while retaining the transparency and liquidity that ETFs are known for.

What excites us the most at EasyETFs is the full transparency these products offer. AMETFs eliminate the ambiguity that often accompany other managed products (think Unit Trusts), where only the top 10 holdings or sector exposures are disclosed. With AMETFs, investors gain full visibility into the manager's decisions, strategies, and the actual value they add – no more hiding behind benchmarks or opaque disclosures. Transparency enables investors to assess whether their investments are truly delivering on the promises of active management.

Market participants have clearly taken note of AMETFs. Currently, there are 10  AMETFs listed on the JSE, with a combined market cap of more than R4.7 bn, already accounting for 2.7% of the total market capitalization of all JSE Listed ETFs. This is impressive growth, considering that the first AMETF listed on the JSE just a little over a year ago.  We anticipate that this growth trend will continue at an exponential rate over the coming years.*

A final note – and something not often mentioned – is that all investors in a AMETF is treated equally in terms of fees. Unlike many other managed products there is no differentiating fee classes based on your invested amount. A single fee – for all!

What we see happening in the market
The growth of AMETFs in the South African market signals the persistent broader market shift towards more dynamic and transparent investment solutions. As investors become increasingly sophisticated, the demand for products that offer more than passive index tracking is on the rise. Investors are seeking the potential for outperformance combined with the clarity and cost-effectiveness that ETFs provide. 

Beyond the investor perspective, AMETFs offer significant advantages to fund managers, particularly in terms of distribution. Because these products are listed instruments – they can be bought and sold by anyone with a stockbroker account, extending their reach far beyond traditional platform offerings.
Fund managers are also exploring a range of strategies, from thematic investing to sector-specific funds, providing investors with more options to tailor their portfolios to specific goals or market views. We expect this diversification within the AMETF space to create a richer and more competitive market, ultimately benefiting investors through increased choice and fostering innovation in fund management.



What to look out for – as we prepare for our AMETF launch(es)
With our upcoming launch of EasyETFs' own range of AMETFs, we’re excited to bring these innovative products to the forefront, offering investors new ways to achieve their financial goals. Whether you’re seeking professional management with full transparency, an investment instrument to simplify portfolio management, or looking to diversify your portfolio with cutting-edge strategies, AMETFs provide a compelling solution.

As we prepare for our own new funds to launch, we’re not just observing the market landscape change, we bring you along for the ride!





 *Calculated using prevailing market information at date of writing and excludes AMCs, ETNs, and Structured Products.

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