Absa Capital launches five precious metal, currency ETNs

Absa Capital has launched five exchange-traded notes (ETNs) on the Johannesburg Stock Exchange providing investors with exposure to precious metals and currencies.

Launched under the NewWave ETN programme, three of the notes provide investors with currency exposure to developed markets (euro, UK sterling and US dollar), while the remaining two are linked to the spot price of platinum and silver.

“Investors are attracted by the access to markets without the necessity of directly trading and storing commodities,” says Vladimir Nedeljkovic, head of investments at Absa Capital in Johannesburg.

Nedeljkovic says that NewWave Currency ETNs are opening up the currency market to retail investors. “International currency is the largest and most liquid asset class in the world. And yet, most investors have zero direct exposure to currency in their portfolios,” he says.

“With the precious metals ETNs, it is as if the investor is physically holding the precious metal, but without having to store it. If the price of the precious metal goes up or down, the value of the ETN will also go up or down,” he adds.

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