Sygnia lists clean energy ETF on the JSE

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’s head of investment, Kyle Hullet.

The company notes that its ETF listing comes as the JSE prepares to list and trade actively-managed exchange-traded funds (AMETFs) from Friday (14 October) which will stimulate growth of the ETF sector.

The SYGSE listing will grow ETF instruments on the JSE to 94 with a 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.

“Investors have the opportunity to invest in ETFs like SYGSE and gain exposure to the underlying companies [which] contribute towards growing a sustainable economy,” she adds.

This comes after the JSE announced in September that the Financial Sector Conduct Authority (FSCA) approved amendments to the JSE Listings Requirements. It noted that the approval meant that investment managers will be able to use an actively-managed investment strategy to produce returns as opposed to utilising a passive investment strategy.

Read/listen: JSE relaxes listing requirements

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.

Nondumiso Lehutso is a Moneyweb intern.