FNB EXPANDS GLOBAL ETN RANGE WITH FIVE NEW LISTINGS TO BROADEN INVESTOR DIVERSIFICATION OPTIONS
FNB has expanded its exchange traded note (ETN) offering with the launch of five new globally focused ETNs – giving South African investors broader access to international markets, sectors and investment themes through locally listed instruments on the JSE
The new ETNs provide exposure to Advanced Micro Devices (AMD), the iShares Core EURO STOXX 50 UCITS ETF, iShares Core MSCI Japan UCITS ETF, iShares Core MSCI Emerging Markets UCITS ETF, and the iShares MSCI World ex-USA UCITS ETF. Together, these additions extend FNB’s global ETN range across developed and emerging markets, technology and regional diversification opportunities.
Each ETN is available in both Compo and Quanto structures. Compo ETNs provide exposure to both the underlying asset and dollar currency movements. The Quanto ETNs remove the impact of exchange rate movements and returns reflect only the underlying investment performance.
Bheki Mkhize, CEO of FNB Wealth and Investments says the latest additions are designed to help investors build more balanced global portfolios while accessing opportunities beyond traditional market exposures in the local market.
He highlights the new MSCI World ex-USA ETN as a key diversification tool for investors seeking developed market exposure outside the United States, including Europe, Japan and other developed economies. “Many South African investors already have more US exposure than they realise through global indices and technology investments,” Mkhize explains. “The MSCI World ex-USA ETN gives investors a practical way to broaden their international exposure and reduce concentration risk by adding developed market exposure outside the United States.”
At the same time, the inclusion of ETNs linked to Japan, emerging markets and European large caps creates additional regional diversification opportunities, while the AMD ETN expands FNB’s technology and artificial intelligence exposure offering as a compliment to the existing Nvidia ETN listed
Sebastian Pillay, Head of Share Investing at FNB Wealth and Investments says, “AMD strengthens the AI infrastructure exposure in our range. While much investor attention has focused on a small group of dominant AI names, the opportunity lies across the value chain. Demand for chips, data-centre capacity and advanced computing is supporting a wider semiconductor ecosystem, and AMD gives investors exposure to another important participant in that value chain.”
The launch of these five investment instruments also builds on strong recent performance seen across much of the existing FNB ETN range and supports continued investor interest in accessing a broader range of global themes and sectors.
Technology and semiconductor exposures have been among the strongest FNB ETN performers over the past 12 months, with ETNs linked to Alphabet delivering strong gains (Alphabet Quanto: 135.4%; Alphabet Compo: 108.9%), Broadcom also performing strongly (Broadcom Quanto: 115.8%; Broadcom Compo: 91.4%), and ASML recording notable growth (ASML Quanto: 107.3%; ASML Compo: 90.6%). Nvidia has also continued to reflect investor interest in AI infrastructure, with its Quanto ETN up 89.6% and Compo ETN up 68.3%.
Performance has not been limited to technology. Other parts of the FNB ETN range have also delivered positive 12-month returns across different sectors and themes. These include clean energy exposure through the FNB Global Clean Energy ETN (Quanto: 76.0%; Compo: 56.1%), financial services exposure through Goldman Sachs (Quanto: 73.2%; Compo: 53.7%) and JPMorgan (Quanto: 31.6%; Compo: 16.9%), consumer and e-commerce exposure through Amazon (Quanto: 42.5%; Compo: 26.4%), automotive exposure through Ford (Quanto: 21.8%; Compo: 8.0%), and broader global equity exposure with an ESG focus through the FNB SRI World ETN (Quanto: 21.6%; Compo: 7.8%).
“Our objective is to continue giving clients accessible and cost-effective exposure to global investment opportunities without the need to physically send money offshore,” explains Pillay. “These five new investment options expand our range to 74 ETNs tracking 37 underlying investments, offering investors access to a broad range of international companies, sectors, themes and regional exposures that allow them to build portfolios that better reflect their long-term diversification goals.”
SUPPLIED.
