We recently held a webinar with Phibion Makuwerere, one of Intellidex's Financial Analysts, on Using ETFs to COVID-proof your portfolio.
For a number of years Intellidex has been offering EasyEquities high quality research and market insight into our ETFs - Exchange Traded Funds. We have been getting these insights in the form of individual notes focusing on specific ETFs - where they give investors more information around specific instruments without bias, as well as monthly notes picking the best ETFs of the month. Giving our clients - you - a summary of market events in South Africa and worldwide.
For a recording of the webinar with Phibion, please click on the image below:
To view Phibion's presentation please click on the image below:
Background: Exchange-traded funds (ETFs)
Exchange-traded funds (ETFs) are passively managed investment funds that track the performance of a basket of pre-determined assets. They are traded the same way as shares and the main difference is that whereas one share gives exposure to one company, an ETF gives exposure to numerous companies in a single transaction. ETFs can be traded through your broker in the same way as shares, say, on the EasyEquities platform. In addition, they qualify for the tax-free savings account, where both capital and income gains accumulate tax free.
Benefits of ETFs
- Gain instant exposure to various underlying shares or bonds in one transaction
- They diversify risk because a single ETF holds various shares
- They are cost-effective
- They are liquid – it is usually easy to find a buyer or seller and they trade just like shares
- High transparency through daily published index constituents
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