Absa Capital courts investors for historic ETF

ETFs are investment funds that track the performance of an index or commodity, the fund being listed on the stock exchange and traded like shares. Absa Capital's gold ETF tracks the price of gold and is supported by physical gold assets which currently amount to 48 tonnes valued at P12.9 billion. The gold ETF is Absa Capital's flagship ETF product, providing a return of 24.74 percent since its inception in November 2004.

Effectively, local investors will have the opportunity to own gold, with the value of their investments determined by the price of gold. At current rates, one security or unit of investment in the ETF will cost about P85, with each unit bought being equivalent to one one-hundredth of a gold ounce.