Standard Bank to Launch 3 ETFs on the JSE

Mining Weekly reported yesterday that Standard Bank plans to launch three new exchange-traded funds (ETFs) — the AfricaGold ETF, AfricaPlatinum ETF and AfricaPalladium ETF — on the JSE.

As quoted in the market news:

AfricaPalladium, which was expected to list later this week, would also be the first palladium ETF to be listed in the local market following a strong demand for the metal.

The AfricaGold and AfricaPlatinum ETFs would be listed at the beginning of April.

Each new commodity ETF would benefit from its own unique guarantee, backed by the actual commodity held by the custodian. The commodities would be inspected on a half-yearly basis to verify the quantity and quality of the commodities held on behalf of investors.

Standard Bank’s Johann Erasmus said:

The ETFs invest directly in palladium, gold and platinum, respectively, and track the rand prices of the metals. This allows investors to invest in liquid listed instruments and, because of the security structure that each ETF has, the investor has no issuer risk or risk of exposure from the other commodities held in the ETFs. Investors gain direct exposure to the commodities, investing in physical palladium, gold and platinum, which are held in vaults.

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