How offshore exchange-traded funds can add value to your investment portfolio


An exchange-traded fund (ETF) is a type of security that tracks an index, industry, commodity, or other asset. It provides cost-effective access to indices in various industries and geographies. Marc Krom, Regional Director at Glacier International, explains how ETFs bring you into the world of global investing, with the added benefit of simple administration, saving you time, effort and costs.

Offshore ETFs offer a wide choice beyond our borders

Whether you are a small investor or a large investor, says Marc, ETFs can be a good investment vehicle if you are looking to broaden the diversity of your portfolio without the time, effort and skill required to analyze hundreds of stocks. or individual markets.

Offshore investing provides access to markets with different growth cycles than local ones. There are 11 offshore sectors to choose from compared to South Africa’s top three – resource, financial and industrial.

Cut the paperwork

We’ve made the process easier for investors, says Marc. Traditionally, to include an ETF in your portfolio, you have to open a custody or brokerage account to place the order.

Glacier International has enabled access to a wide range of ETFs that can be purchased directly on its platform. Without the need for additional deposit accounts, this creates a simple and cost-effective way to add global ETFs to your portfolio.

Seven reasons why an ETF is a smart addition to your investment portfolio

We know that investors are continually looking for simple, cost-effective ways to improve their investment portfolios both locally and abroad, which is why an offshore ETF offers:

  • Transparency – ETFs display every security currently in the fund, so you know exactly what you own.
  • Flexibility – ETFs provide exposure to enhance your core portfolio as well as your tactical investment strategy.
  • Profitability – ETFs often have lower expense ratios than other investment vehicles.
  • Liquidity – ETFs are publicly traded and can be traded at any time.
  • Diversification – ETFs provide a single source of instant exposure to the returns of various securities.
  • To access. ETFs are available directly on the Glacier International platform with no red tape or additional fees required to open securities accounts.
  • Tax efficiency. Capital gains tax is limited because trading in the underlying securities portfolio does not result in capital gains tax as would be the case if each of the securities were held independently by the ‘investor.

Before you decide to invest in an offshore ETF, explains Marc, first determine the appropriate offshore portfolio to meet your investment goals. Your duly authorized financial advisor is in a good position to determine the best solutions for your needs. As with all financial planning, unless you are a qualified and knowledgeable expert, investment decisions and which vehicles to choose should be made with your advisor.

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