Glacier expands offering to include ETFs

Glacier started offering five exchange-traded funds (ETFs) directly via its platform from 3 June.

With demand for passive investments having increased locally and globally over the past few years, Glacier has launched five ETFs that are now available via the platform – making it one of only a few in SA to offer ETFs without the need for a share trading account.

Being collective investments, ETFs share many similarities with unit trust funds. They’re highly regulated, liquid and transparent. An ETF is listed on an exchange, tracks an index or a basket of assets and is typically more cost-effective than most actively managed unit trust funds.

Partnership with Satrix

Glacier has partnered with Satrix, the second largest provider of passive investments in SA, to make a limited range of ETFs available directly on the Satrix platform. This will allow investors to access a choice of unique and cost-effective opportunities within their retirement and discretionary savings portfolios.

ETFs on offer

To provide investors with exposure to local markets, Glacier will make the Satrix Top 40 ETF available. The total expense ratio (TER) of this ETF is 0,10% (as at 30 March 2019).

Offshore markets can be accessed via Satrix’s rand-denominated MSCI World, MSCI Emerging Markets, S&P 500 and Nasdaq 100 ETFs, with TERs ranging between 0,25% and 0,48% (as at 30 March 2019).

More benefits to investors

Many investors are using passive solutions when constructing portfolios on a core-satellite basis, and easy access to the low-cost ETFs will prove attractive for this strategy.

The ETFs are available across all local platform products, and wrap funds have been available since 3 June.

Click here to read an article on our ETF range and to view answers to FAQs.