CoreShares lists two global ETFs

CoreShares, a leading ETF firm in South Africa, has announced the imminent listing of two global ETFs on the Johannesburg Stock Exchange (JSC). The first of the two ETFs is the CoreShares S&P 500 ETF, which tracks the iconic S&P 500 index, while the second is the CoreShares S&P Global Property ETF, tracking the S&P Global Property 40 Index. Gareth Stobie, the Managing Director at CoreShares, joined CNBC Africa in the studio to discuss the launch and the benefits these ETFs offer to local investors. Stobie highlighted the significance of bringing the S&P 500 index to the JSC, making it accessible to South African investors without the need to externalize their investments to international markets like the US or the UK where similar ETFs are traded. He emphasized the diversification benefits of investing in global assets through ETFs, especially amidst current political risks. Stobie also pointed out that the ETFs provide exposure to US equities, including global companies like Apple and Microsoft, which operate internationally, enabling investors to capitalize on the global growth environment. The CoreShares S&P Global Property ETF offers broad exposure to global property assets, with significant allocations to US listed property companies and exposure to markets in Hong Kong, Australia, China, Japan, Europe, and the UK. Stobie expressed optimism about the response from local investors, noting the competitive pricing of the ETFs with management fees between 45 and 50 basis points. He emphasized the growing trend towards ETFs as the future of investing, particularly for large-cap equities where beating the benchmark index is challenging for active managers. Stobie also discussed the importance of diversification in the current market environment, advising investors to spread their investments across different asset classes to mitigate risks and optimize returns.