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Business Writer

The much awaited Old Mutual exchange traded fund (ETF), the first such financial instrument in the country, was listed on the Zimbabwe Stock Exchange yesterday.

Of the 80 million units on offer, 4 732 234 units were traded at $1,0022 which is 0,22 percent above the listing price of $1.

Known as the Old Mutual Top Ten ETF, the instrument, ended its debut day with a market cap of $80,176 million. This makes it a bigger asset than listed entities NTS ($69,69 million) and Unifreight ($19,80) in terms of market value.

By value, the trades in the ETF amounting to $4 742 729, were at 34 percent of the $13,8 million invested in ordinary shares.

Investors who wish to invest in the fund can do so in two ways, by buying units in the ETF through any registered stockbroker or alternatively investing in kind by delivering a basket of stocks in the exact weights of the fund through an authorised participant, Old Mutual advised.

An ETF is a type of security that involves a collection of securities that often tracks an underlying index. Old Mutual’s ETF will be based on the bourse’s top 10 Index.

ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types.

This investment offers investors an opportunity to own 10 underlying stocks through one investment in the ETF.

Old Mutual said the investor will not have any additional tasks or costs over and above those associated with dealing in any other publicly traded security.

The fund manager will be responsible for periodically replicating the ZSE Top Ten index in line with the index ground rules.

The ZSE Top 10 Exchange Traded Fund has brought a new dimension to the country’s limited capital markets.