What you should ask be­fore in­vest­ing

Finweek English Edition - - Cover Story Exchange-traded Funds -

■ What is the per­for­mance of the ETF, over a num­ber of dif­fer­ent pe­ri­ods, against the ac­tual re­turns of the in­dex or com­mod­ity it tracks?

■ What are the costs? Do th­ese in­clude buy­ing and sell­ing the ETF, and will I be taxed when I sell?

■ Does this ETF track the in­dex ex­actly or does it ap­ply dif­fer­ent weight­ings to cer­tain shares?

■ Given the volatil­ity of the rand, to what ex­tent can you pre­dict the per­for­mance of this off­shore ETF?

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.