THE Zimbabwe Stock Exchange (ZSE) has listed the first-ever Exchange Traded Fund signalling a major milestone in the development of the country’s financial markets.
This comes after Old Mutual Exchange Traded Fund’s debut trading on the bourse this Tuesday.
The Old Mutual Exchange Traded Fund tracks the top ten heavyweight counters on the exchange.
Speaking at the listing event at the Zimbabwe Stock Exchange Headquarters in Harare this Tuesday, Old Mutual Chief Executive, Sam Matsekete highlighted the importance of exchange-traded funds in allowing investors to build a diversified portfolio with relatively low investment.
“ETFs are a basket of securities allowing an investor to participate and have exposure into securities without purchasing the underlying asset,” he said.
“In this case, by trading in the fund investors have exposure to the top ten counters on the ZSE but without necessarily buying into those shares.”
Finance and Economic Development Minister, Professor Mthuli Ncube described the listing as a major step in the development of the country’s capital markets.
“As the Government, this development means that our capital markets are now catching up with other developed markets and this means that the local bourse is slowly graduating to become a formidable force in the regional capital markets,” he said.
Professor Ncube hinted that the maiden listing attests to the continuing sophistication of the local capital markets, with players riding on the stability obtaining in the economy.