Niki Giles, Head of Strategy at Prescient Fund Services

As Money Smart Week South Africa (MSWSA) kicks off this week 25–31 August 2025, the spotlight is on building strong financial foundations. This year’s theme, “Smart Money: Financial Foundations for a Resilient Future”, could not be more relevant for South Africans seeking simple, affordable ways to invest.

ETFs for smart, simple way to start investing

Whether you’re saving for your child’s education, planning for retirement, or simply wanting your money to work harder for you, understanding your investment options is the first step. One of the most accessible and transparent tools available to everyday investors is the Exchange Traded Fund (ETF) – an investment vehicle that’s levelling the playing field between small investors and large institutions.

“ETFs are a powerful way to start investing because they offer affordability, transparency, and diversification all in one product,” says Niki Giles, Head of Strategy at Prescient Fund Services. “Whether you invest R100 or R10 million, you get access to the same fund, on the same terms, with the same management fees. That’s true financial fairness.”

How ETFs work
An ETF is a collection of investments – such as shares, bonds, or commodities – bundled into one fund and listed on the Johannesburg Stock Exchange (JSE). Like shares, ETFs can be bought and sold throughout the trading day, giving investors real-time control over their investments.

“Think of an ETF as a ready-made fruit salad,” explains Giles. “Instead of buying each piece of fruit separately, you buy one bowl that gives you a variety. That instant diversification helps reduce risk.”

Why ETFs are a good starting point

• Affordable: You can start with as little as R100 through online platforms or banking apps.
• Fair pricing: Whether you invest R100 or R10 million, the management fees are the same for everyone.
• Easy to buy and sell: ETFs trade throughout the day, so you can invest or cash out when you choose.
• Diversification: One ETF can give you exposure to dozens, even hundreds, of companies or assets.

ETFs vs Unit Trusts vs Actively Managed ETFs (AMETFs) – what’s the difference?

• ETFs – Listed on the JSE and traded like shares throughout the day. Same management fees for all investors and transparent pricing.
• Unit Trusts – Not listed on the stock exchange. Priced once daily and may have different fee classes depending on how much is invested.
• AMETFs – A newer type of ETF that blends the transparency and tradability of ETFs with active, hands-on fund management to target specific strategies.

Levelling the playing field
Unlike many traditional investment funds, ETFs don’t have multiple fee classes. All investors pay the same percentage-based costs, regardless of how much they invest. This fee structure removes historical barriers that often disadvantaged smaller investors.

The rise of mobile investing
The growth of mobile-first platforms such as EasyEquities has transformed access to the JSE, allowing South Africans to start investing with as little as R100 and a smartphone. “The digital era has made investing as easy as online shopping,” says Giles. “It’s breaking down entry barriers and empowering more people to take control of their financial futures.”

Education is key
While ETFs are designed to be simple and cost-effective, Giles stresses that investors should still do their homework. “Understand what’s inside the ETF, the risks involved, and how it fits your long-term goals. The right knowledge will protect you from common mistakes and help you stay invested for the long term.”

Closing thought
ETFs are helping turn financial inclusion into real financial empowerment. “Whether you’re just starting out or already managing a significant portfolio, ETFs offer the same opportunities, transparency, and fairness to everyone,” says Giles.