Old Mutual ETF gains 468pc in first year





Old Mutual’s Top 10 Exchange Traded Fund (ETF), which was listed on the Zimbabwe Stock Exchange (ZSE) last year, closed its first year of trading valued at $632 million. 

This represents a yearly market capital gain of 468 percent for the diversified fund.

The ZSE welcomed its second ETF, Morgan and Co, last week while another one is reportedly awaiting Zimbabwe Securities and Exchange Commission approval.

An ETF is a basket of securities that can be bought or sold on the stock market the same way traditional stocks are traded.

At close of trading on December 31, 2021, the Old Mutual Top 10 ETF closed with a 12-month aggregated volume traded of 90,6 million valued at a total of $179,6 million in turnover.

January 2021 saw the highest volumes traded at 28,6 million while December registered the biggest turnover in a month at $42,4 million.

The Old Mutual Top 10 ETF had a year of two contrasting halves in terms of volume and value traded.  In the first half volume traded amounted to 60,2 million, which dropped by 42 percent to 34,9 million units in the period July to December.

Turnover values traded had a similar trend with a value of $184,6 million value traded in the six months to June. However, the value traded fell to $100 million in the last six months of 2021, representing a 45 percent decrease in volumes sold.

The coming of ETF s on the ZSE has broadened the investment space on the ZSE, which has previously largely been known as a marketplace for socks.

According to the ZSE board chairperson Caroline Sandura, ETFs now offer retail investors more latitude to spread risk and diversify investment options.  – Herald