Old Mutual ZSE top 10 ETF begins online trading
By Oliver Kazunga
The Old Mutual Zimbabwe Stock Exchange (ZSE) Top 10 Exchange Traded Fund (ETF) is now available through an online trading platform, which allows ordinary people to buy shares remotely.
An ETF is a type of security that involves a collection of securities that often tracks an underlying index.
The Old Mutual’s ETF is based on the Zimbabwe Stock Exchange’s top 10 index.
The ETF, which is the first such financial instrument in Zimbabwe was listed on the ZSE early last month with 4 732 234 units being traded at 0,22 percent above the listing price of $1.
In a statement Tuesday, the ZSE advised shareholders that:
“The Old Mutual ZSE Top Ten ETF is now available through ZSE Direct. To invest in the Old Mutual ZSE Top Ten ETF, you are required to have an existing account on ZSE Direct or a trading account with your stockbroker.
“If you do not have your ZSE Direct account, select the Buy tab and choose the ETF tab to start trading.”
Old Mutual has advised that investors wishing to invest in the fund can do so in two ways – by buying units in the ETF through any registered stockbroker or alternatively investing in kind by delivering a basket of stocks in the exact weights of the fund through an authorised participant.
ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types.
This investment offers investors an opportunity to own 10 underlying stocks through one investment in the ETF.
Old Mutual has said the investor will not have any additional tasks or costs over and above those associated with dealing in any other publicly traded security.
The fund manager will be responsible for periodically replicating the ZSE Top Ten index in line with the index ground rules. The Chronicle.