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New ETFs thread
#31
Investec Emerging Markets Digital Plus

The Digital Plus ESP is designed to provide investors with a minimum 35% rand return if the ETF goes up by as little as 0.1% at the end of 3.5-years.
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#32
The Investec one is worth a look I reckon, the rest just duplicates of already existing funds so fees are the only thing separating them.
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#33
(02-27-2018, 09:03 PM)Bandit Wrote: The Investec one is worth a look I reckon, the rest just duplicates of already existing funds so fees are the only thing separating them.

I feel the ETF space in SA is getting crowded now - soon we will have what we have in the US. I much prefer we have a couple smart beta products (like 10) and then the companies focus on lowering the fees.

We have 64 ETFs on the JSE currently, it's too much.
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#34
(02-27-2018, 09:05 PM)Spreadsheet Ranger Wrote: I feel the ETF space in SA is getting crowded now - soon we will have what we have in the US. I much prefer we have a couple smart beta products (like 10) and then the companies focus on lowering the fees.

We have 64 ETFs on the JSE currently, it's too much.

The benefit is that you can use a specific provider's platform (CoreShares, Sygnia etc) and have all the portfolio building blocks there (ETFs). MUCH lower fees.
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#35
STANLIB Global REIT Index Feeder ETF - Targeted TER 0.34%
STANLIB MSCI World Index Feeder ETF - Targeted TER 0.4%
STANLIB Global Government Bond Index Feeder ETF - Targeted TER 0.4%
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#36
Thanks for that.

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#37
Absa is listing two NewFunds ETFs on the JSE: The NewFunds Low Volatility Equity ETF, which is made up of stocks that are considered to be more stable over time, and the NewFunds Value Equity ETF, which is made up of stocks that are considered 'cheap' or undervalued.
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#38
Finally. They initially said the value ETF will be listed mid 2017. Better late than never.
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#39
Oooh, the value one looks attractive! :-)

How does it work though - if it's made up of undervalued shares, as soon a component share recovers to a calculated "fair" value (for want of a better word), then it gets kicked off the ETF?

And how is "fair value" decided? Especially since 28% of the ETF is commodity shares, which are cyclic?

It sounds really good, but I'm struggling to get around the technicalities.

#40
(03-09-2018, 11:15 AM)SaurusDNA Wrote: Oooh, the value one looks attractive!   :-)

How does it work though - if it's made up of undervalued shares, as soon a component share recovers to a calculated "fair" value (for want of a better word), then it gets kicked off the ETF?

And how is "fair value" decided? Especially since 28% of the ETF is commodity shares, which are cyclic?

It sounds really good, but I'm struggling to get around the technicalities.

Google "factor investing"

This is the first "value" ETF we have as far as I'm aware, but we've had low volatility and momentum for quite some time and of course recently we've gotten a quality ETF.
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#41
Here is the link to the factsheets of each ETF

NewFunds Low Volatility: 

NewFunds Value ETF: 

PS: The layout of those sheets look bloody nice actually compared to the other ETFs I've seen.
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#42
Well, that's an "underwhelming" fact sheet for NFEVAL.

Interesting though, it rebalances twice a year instead of the regular four times a year but still comes at a cost of 0.5%. For what? NFEMOM is expensive because it rebalances every month but this...why is it not closer to the 0.2-0.3 of their other ETFs like NFSWIX?
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#43
(03-09-2018, 10:01 PM)Bandit Wrote: Well, that's an "underwhelming" fact sheet for NFEVAL.

Interesting though, it rebalances twice a year instead of the regular four times a year but still comes at a cost of 0.5%. For what? NFEMOM is expensive because it rebalances every month but this...why is it not closer to the 0.2-0.3 of their other ETFs like NFSWIX?

To me it makes sense that it re-balances only twice a year. The ETF is made up of "undervalued" shares weighted by how much they are undervalued. As they start growing and becoming less undervalued, the weighting becomes less. As soon as they reach "fair" value, they no longer qualify to be in the ETF and get kicked off. At least in an extended growth run, the six months will give the ETF the benefit of reaping the growth of that share, ratrher than kicking it off immediately as it reaches "fair value", as would be the case with frequent re-balancing.

My problem with this methodology is that the biggest weighting is given to the most undervalued shares which have become that way by a continued down or flat trend, which is bad. As soon as it starts growing (which is desirable), it becomes less and less undervalued, so it becomes weighted less and less as it grows more. This penalizes shares that are performing.

Maybe I am understanding the methodology incorrectly, but this is what I understand from what I have read. I wish we had an expert around that could clear things up regarding the methodology.

#44
they weight by ERC – Equal Risk Contribution .. here's vid of the presentation from Thursday on the methodology, weighting etc.

https://justonelap.com/video-absa-newfunds-etf-launch/

#45
@SaurusDNA, it's not the rebalancing interval, it's the cost. 0.5% TER is high for an ETF like this IMO. Just wondering where the costs are coming from considering it trades less than their other ETFs on the same exchange but at double the cost.
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