Coreshares to list new ETF at the JSE

South Africa-based investment management company CoreShares is set to launch a new exchange-traded fund (ETF) on the Johannesburg Stock Exchange (JSE) in February. The CoreShares S&P Global Dividend Aristocrats ETF will provide investors with exposure to a global index comprising various dividend aristocrats strategies. Gareth Stobie, Managing Director of CoreShares, explained in an interview with CNBC Africa that dividend aristocrats are companies with a solid history of paying and growing dividends over time, highlighting their quality and stability. The index, designed by S&P Dow Jones Indices, will focus on companies across North America, Europe, and Pan Asia, known for their consistent dividend payments. Stobie mentioned examples such as McDonald's, Pepsi, Coca-Cola, and Johnson and Johnson as potential components of the index, emphasizing the presence of quality defensive companies. While the ETF will be underweight in technology, it will be overweight in consumer staples and other mature industries. Stobie also addressed the issue of costs associated with the ETF, stating that the management fee is set at 35 basis points with additional costs bringing the total to around 60 basis points. Despite the strength of the South African rand, Stobie reassured investors that CoreShares offers a local dividend aristocrats strategy for those preferring to focus on South African companies, providing flexibility in investment options. He highlighted the benefits of investing in companies with reliable dividend streams, suggesting that such investments tend to keep up with inflation and remain stable across different economic cycles. The ETF is scheduled to list on the JSE on February 22nd, with a book build preceding the listing on February 15th.