The ZSE has already granted approval for the listing of the Datvest Modified Consumer Staples ETF on the ZSE by way of Introduction.
ETFs are baskets of different types of investments such as stocks, commodities and bonds that are pooled into a single entity which then offers shares to investors that are subsequently traded on major stock exchanges.
The Modified consumer staples-ETF will constitute of 10 counters which are Delta, National Foods, Innscor Africa, Hippo Valley Estates, Simbisa Brands, Ok Zimbabwe, Meikles Limited, TSL Limited, Afdis Distillers and Dairibord Holdings.
All assets of the fund will be held by CBZ Custodial Services who will act as Custodian for the fund, while Stanbic Bank Zimbabwe is the Trustee.
Settlement of trades in the units will be done in electronic format in accordance with the settlement modalities approved by the Zimbabwe Stock Exchange.
In its prospectus, Datvest said investing in the Modified Consumer Staples ETF Securities represents a more efficient way of tracking a given benchmark compared to investing in a basket of individual stocks.
The listing price will be the Net Asset Value of the fund per the initial number of units.
The Net Asset Value will be calculated by CBZ Asset Management Company Limited daily at the end of each trading day by valuing the assets and deducting the liabilities, in accordance with the terms of the Trust Deed.
This will be the third ETF on the ZSE after the Old Mutual Top 10 and Morgan and Co Multi-Sector ETFs listed last year as the sector continues to expand investment choices.
The global ETF industry surpassed US$ 5.5 trillion investments in 2020 according to Investment Company Institute statistics.
The Securities and Exchange Commission of Zimbabwe (SecZim) expects at least three more ETFs to list on ZSE this year with two already been approved and one still in the pipeline.
