What is the fund objective?
To provide investors with exposure to the South African equities market through the purchase of a JSE listed ETF. The Ashburton MidCap ETF invests in the 41st to the 100th largest companies on the JSE in terms of market capitalisation.
What is the investment process?
The aim of the Ashburton MidCap ETF is to provide returns linked to the performance of the FTSE/ JSE MidCap Index. The ETF tracks the component equities of the index in proportion to the index weightings. The FTSE/JSE MidCap index contains the 60 largest companies listed on the JSE that are not included in the FTSE/JSE Top40 Index in terms of market capitalisation. The Ashburton MidCap ETF pays a quarterly distribution to investors which is made up of any dividends or interest earned from the underlying shares.
Why invest in in this fund?
Convenient and cost effective
Ashburton ETFs are a convenient, cost-effective method to gain market exposure. Ashburton ETFs allow you to obtain this exposure in an easily tradeable form. ETF units are listed on the JSE and can be traded just like any other share through a stockbroker.
Tracks an index
The asset manager is not mandated, nor incentivised to outperform the index the ETF is tracking. Instead, the goal of the asset manager is to replicate the constituents. The investment is therefore deemed to be passively managed (which is typically more cost effective than an actively managed fund).
Ashburton ETFs are highly transparent — you can see exactly which securities make up each ETF, including the weightings and sectors represented within a highly regulated trading environment.
Possible portfolio core
As Ashburton ETFs are index-based, they can also be used as the core of a portfolio to provide a higher likelihood of returns consistent with the market performance of the index being tracked. You are then able to allocate your remaining investment capital to satellite investment opportunities in the pursuit of above-market related returns.
||South African rand
||Moderate to high
Annualised performance since 2012:
*Hover on chart to see values