South African investors were recently introduced to a new type of investment, the actively managed exchange traded fund, or AMETF. Although the funds have existed for some time on overseas markets, recent changes in financial regulations now allow for them to be traded on the JSE.
Traditional exchange traded funds (ETFs) have been around for more than 20 years and are one of the two predominant types of collective investments governed by the Collective Investment Schemes Control Act (Cisca), the other being unit trust funds.
Both enable investors
