JSE-listed fund manager Sygnia, on Tuesday, listed its Sygnia Itrix Sustainable Economy (SYGSE) exchange-traded fund (ETF) on the Johannesburg Stock Exchange.

Sygnia says the ETF tracks the S&P Kensho Sustainable Technologies Index which measures the performance of companies with exposure to smart transportation and manufacturing, sustainable agriculture, clean power, space exploration, intelligent infrastructure, and technologies that enable remote working.

“Finding themes that provide growth in a low-growth world is critical to successful investing, and innovation stocks focused on building a sustainable economy present key opportunities,” notes Sygnia head of investment Kyle Hulett.

The SYGSE listing will bring the number of ETF instruments on the JSE to 94, with a total market capitalisation of over R114 billion.

“The JSE is a magnet for ETF issuers who take seriously their responsibility to strike a balance between generating returns for investors and addressing ESG (environmental, social and governance) related concerns,” adds Valdene Reddy, director of capital markets at the JSE.

Actively-managed ETF launch

The ETF listing comes as the JSE prepares to list and trade actively-managed exchange-traded funds (AMETFs) from Friday.

In September the bourse announced that the Financial Sector Conduct Authority (FSCA) approved amendments to the JSE listings requirements, allowing issuers to list and trade AMETFs for the first time. “The changes [allow] locally registered Collective Investment Scheme (CIS) management companies to list ETFs which related to offshore assets on South African securities exchanges. It [allows] these funds unlimited investment in offshore assets, subject to the restrictions on their offshore portfolio allowances.”

The stock exchange indicated that given the global ETF market’s evolution and the local industry’s desire, the impending introduction of AMETFs in South Africa aligns with global best practices.