What is an ETF?
An ETF (exchange-traded fund) is a fund that holds a basket of assets; often tracking an index or a theme (for example, gold); and trades on the exchange like a single share. Buy one unit and you get fractional exposure to everything the fund holds, in one transaction, through your normal broker and CDS account.
How is an ETF different from a unit trust (like iTrust)?
Both pool money into a diversified basket, but they differ in how you access them:
- An ETF trades on the DSE during market hours at a live market price, like a share.
- A unit trust (such as the iTrust or UTT AMIS funds) is usually bought and sold directly with the fund manager at a price based on net asset value, not on the exchange.
So ETFs offer intraday, on-exchange trading; unit trusts offer simple manager-based subscription and redemption. We cover the unit-trust side on the Collective funds page.
Why do ETFs matter for a market like the DSE?
For a market where some individual shares trade thinly, an ETF can offer instant diversification and a way to get broad or thematic exposure without picking single names. As the asset class develops locally, it lowers the barrier to a diversified position.
What should I check before buying an ETF?
- What it actually holds; the underlying index or assets, and whether that matches your goal.
- Fees; the fund's expense ratio, plus the usual brokerage/exchange costs on the trade.
- Liquidity; how actively the ETF's units trade on the DSE, since a new asset class can be thin.
- Tracking; how closely the ETF follows what it's meant to track.
Where can I see the ETFs listed on the DSE?
The current list of DSE-listed ETFs; and what each one tracks; is on our ETFs page, kept in line with the exchange. (Because listings change, treat that page, and the DSE itself, as the source of truth rather than any fixed list in an article.)