JSE lists AI-focused actively managed ETF

The JSE has listed a new actively managed exchange-traded fund (AMETF) focused on artificial intelligence (AI).

The Ivy EasyETFs AI Innovation AMETF began trading on the exchange’s main board on Wednesday, 25 March under the code IVYAI, offering South African investors exposure to global companies positioned to benefit from advances in AI and related technologies through a single listed instrument.

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The fund differs from traditional index-tracking ETFs in that it is actively managed, with a portfolio manager making ongoing decisions on which AI-linked shares to hold as markets and technologies evolve, the JSE notes in a statement.

It targets long-term capital growth by investing in international businesses ranging from developers of AI tools to companies enabling infrastructure or applying AI to improve efficiency.

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Bruce Main, CEO of Ivy Asset Management, notes that it built a team with data science expertise to identify “the outlier companies that drive alpha performance in the fund”.

“In an era defined by AI, this is a must-have asset class for investors seeking forward-looking growth,” he says.

The listing comes as actively managed ETFs gain traction among South African investors.

Industry growth has accelerated since the JSE amended its listings requirements in 2022 to allow for actively managed ETFs, with the first products launching in 2023 and the market expanding steadily thereafter.

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Adèle Hattingh, specialist securities manager at the JSE, says the new listing broadens the choice of “future world industry exposure” to South African investors.

“AI is reshaping every sector, and now investors can participate in this growth simply and transparently through the JSE,” she adds.

There are now 133 ETFs listed on the exchange, with a combined market capitalisation exceeding R249 billion, underscoring the growing role of these instruments in South African portfolios.

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