EasyETFs – Your EFT investing tool

EasyEquities is one of CN&CO’s founding partners and over last few years they have truly revolutionised access to investing in South Africa. The brand and business continue to develop and offer all South African’s (and soon Australian’s) access to a platform to further their financial freedom through investing.

Recently, EasyEquities launched EasyETFs. One of our associates, Joshua Nuttall, chatted with Shaun Keeling who is a member of the Digital Assets team at EasyEquities and along side Tristan Finnemore, VP of Digital Assets, built out the EASYETFs site.

Take a look at EasyETFs – a unique platform created to help you find the best ETF for you!

What makes ETFs different?

• One Transaction, Many Shares
• Easy to Buy, Easy to Sell
• Your Risk is Spread
• Tax-Free

What is an ETF?

Exchange-traded funds (ETFs) are passively managed investment funds that track the performance of a basket of pre-determined assets and is a collection of individual assets. That can invest in stocks, commodities, bonds, currencies or a mixture of different assets to give you basically anything your heart desires… In the investment world. Watch the video to learn more.

What is an ETN?

Like ETFs, ETNs are traded like shares on the JSE and also track returns of benchmarks or indices similar to those tracked by ETFs. But get this: ETNs do not actually hold any securities in the benchmark they track.

Instead, an issuing bank promises to pay to investors the return reflected by the index’s performance minus their fees. Where an ETF would sometimes reflect a difference in value between its collection of shares and the actual one on the index it tracks (because it’s always buying and selling those shares to match the index which can cause a slight delay), an ETN is guaranteed to match the index exactly. But that guarantee doesn’t come for free (nuh uh!). Banks charge for the fact that they are guaranteeing the returns of the ETN. Technically that makes ETNs riskier than ETFs because if the firm which issued the particular ETN were to go bankrupt, investors might not receive their full investment back. But because an ETF actually contains all of those assets, even if the management firm went bankrupt, the fund investments would still be valuable.

Find out more about EasyEquities and open your own investment account here.

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