South Africa’s first actively managed exchange-traded fund (AMETF) was launched in May 2023. Since then, the market has grown rapidly, with around 30 AMETFs now listed on the JSE. But what exactly is an AMETF, and why are investors so interested?
Unlike traditional ETFs that passively track an index, actively managed ETFs give fund managers the flexibility to adjust holdings in response to changing markets or new opportunities. They trade on stock exchanges like ordinary shares, providing investors with real-time pricing, liquidity and transparency, while still offering the diversification and regulatory protection of a collective investment scheme.
One of the firms driving this growth is EasyETFs, an EasyEquities subsidiary, which launched its first AMETF on 25 October 2024. What began as a strategy with only R10 million invested has grown to R1.5 billion in assets in just a year. According to David Oberholzer, Business Manager for EasyETFs, this momentum points to a fundamental shift in South Africa’s investment landscape – one where listed, flexible products are reshaping how investors think about collective investments.
“There are about 30 actively managed ETFs on the JSE,” he says. “We’ve got three of them, which means roughly 10 percent of the market by number and around the same by assets. From a standing start to the top three in a year. That tells you where investor demand is heading.”
The appeal, Oberholzer explains, lies in accessibility. ETFs, whether active or passive, trade like shares. Investors know the exact price when they buy or sell, and the funds settle immediately. Unit trusts, by contrast, still operate in what he calls a “cumbersome ecosystem”: you invest today and only discover your price tomorrow or the day after.
“It’s time for disruption,” he says. “Things have been done the same way for decades. The listed model offers immediacy, transparency and fairness.”
Still, he stops short of predicting the demise of the traditional unit trust.
“It’s not about replacement… at least not yet. It’s about convergence,” Oberholzer says. “We’ve built a model that allows both ecosystems to work together. Through EasyEquities’ fractional investing technology, we can distribute a listed ETF through existing unit trust platforms, giving managers access to both markets without changing their processes.”
That approach, he argues, addresses one of the key barriers to innovation in asset management: distribution.
“A lot of asset managers have brilliant ideas but no route to market,” he says. “We reverse-engineered the process, building the product around the distribution base and plugging it in where clients already are.”
The company’s white-labelling (or “co-naming”) service extends that idea. It allows fund managers to launch ETFs under the EasyETFs licence and infrastructure, combining their investment expertise with EasyEquities’ reach.
“We can take an asset manager’s strategy and bring it to market quickly and cost-effectively, leveraging a community of 1.2 million active EasyEquities investors,” Oberholzer says. “No other management company can offer that scale.”
He adds that this success is part of a much broader story for EasyEquities.
“When we launched EasyETFs, it was an intentional strategy built on our deep understanding of how and what South Africans want to invest in,” says Oberholzer. “For years, people said Easy wouldn’t work because retail investors weren’t wealthy or sophisticated enough. Yet here we are, with over R1 billion in new cash coming onto the platform every month. Our investors are proving that they’re as savvy and committed as any institutional investor.”
Accessibility remains central to the platform’s success.
“EasyEquities is for everyone, whether you’re investing R10 or R100 million. We have many high net worth clients using the platform alongside first-time investors. That’s the power of true democratisation: access for all.”
The company’s financial results for the year ending August 2025 will be released on 12 November.
“We’re seeing massive growth in trading volumes and a steady increase in our share price,” Oberholzer says. “Every part of the business – from AMETFs and traditional asset classes to EasyProperties, crypto and our institutional business – is contributing to a strong performance story.”
Performance has also helped attract attention. EasyETFs’ Global Equity AMETF has returned 90% over 12 months, outperforming the S&P 500 since inception in 2016 by more than five percentage points annually. The AI Fund, launched alongside it last year, has gained nearly 60%, while the Regulation 28-compliant Balanced Fund has exceeded its benchmark average.
“These aren’t theoretical results,” Oberholzer says. “They’re proof that active management and ETFs can coexist and thrive.”
Looking ahead, he expects continued momentum. Three new EasyETFs portfolios are awaiting FSCA approval, with more in the pipeline, including the launch of EasyETFs for co-named AMETFs.
“Over the next decade we’ll see a steady migration from unit trust wrappers into ETF structures,” he predicts. “Investors want liquidity and transparency, and managers want efficient access to clients. Active ETFs deliver both.”
For EasyEquities, it’s another example of democratising investing – taking what was once complex and exclusive and making it simple, affordable and accessible. The platform continues to roll out new initiatives to give investors more control over their money. Its ‘Bring It All Home’ campaign encourages investors to consolidate their portfolios, offering a 1% investment bonus on the value of assets transferred to EasyEquities accounts.
“It’s a great time to move,” says Oberholzer. “We’ve made the process simple, safe and rewarding.”