While indices were initially designed to act as performance benchmarks, they are now widely used in the construction of passive investment strategies.

Exchange-traded funds (ETFs) and unit trusts mirror the performance of underlying indices by buying stocks and holding them in a portfolio that has exactly the same weightings as the index itself.

Passive investment strategies have surged in popularity over the past two decades as investors pay closer attention to fees. Market participants have also come to realise that it is difficult to identify stocks that will deliver superior returns over the long run, and as such, it is beneficial to invest in the market as a whole.

The rise of ETFs and unit trusts has allowed non-professional investors to manage risk by gaining exposure to a wide range of companies through a single, highly transparent index-tracking vehicle.

We’re committed to playing our part in providing high quality, clear and easy-to-understand education on index investing and so we participated in a recent enlightening discussion hosted by Asset TV South Africa’s Chloe Mulder. In this panel, Michelle Noth and other industry experts discussed passive investing: what it is, who it is for and what the role of passive investing has in investors’ portfolios.

CPD points are available on the Asset TV platform directly. See below to watch the masterclass here.


Michelle Noth, Client Coverage Executive, CoreShares Investment Managers
Wehmeyer Ferreira, Executive Director, 1NVEST
Ziyaad Parker, Portfolio Manager, Old Mutual Investment Group
Duma Mxenge, Business Development Manager, Satrix


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