Markets

Old Mutual’s ETF makes its trading debut

PHILLIMON MHLANGA

The Old Mutual Zimbabwe’s Top 10 Exchange Traded Fund (ETF),  on Monday made its trading debut on the Zimbabwe Stock Exchange (ZSE)’s main board .

The ETF traded 4 732 234 units  out of 80m units at ZWL$1.0022, which was 0.22% above the opening listing price of ZWL$1.

It closed the day with a market cap of ZWL$80.176m.

“The Old Mutual ZSE Top 10 ETF was successfully listed on the ZSE main board today (Monday),” ZSE chief executive officer, Justin Bgoni said.

The ETF is expected to improve liquidity,diversify the current investment offerings at the local bourse  which had been comprised of local equities only and to deepen the market.

The ETF tracks the ZSE Top 10 counters, which  will be defined from time to time  by the ZSE, which reviews  the counters once a quarter.

This means investors will be offered an opportunity to own 10 underlying stocks through one investment in the ETF.

Investors who wish to invest in the fund can do so through 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 authorized participant.

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