Products & Services

Magwitch are firm believers in index tracking as the most sensible low cost investment strategy. Index tracking or passive investing gives the investor complete exposure to a fully diversified portfolio, thus limiting their risk to any particular share, asset or segment of the market.

Passive investments are accessible through mutual funds and exchange traded funds (ETFs). Magwitch have a preference to use ETFs due to the fees, tradabilty and liquidity.

An ETF is a marketable security that trades like a normal share on a stock exchange and experiences price changes throughout the day as they are bought and sold. Most ETFs are index funds that attempt to replicate the performance of a specific index. An ETF seeks to track the performance of an index by holding in its portfolio the contents of the index. ETFs typically have higher liquidity and lower fees than unit trusts making them an attractive alternative for investors.ETFs offer exposure to a diverse variety of markets and assets. Currently there are over 7 000 different products offered by ETF issuers, covering almost every conceivable market sector. ETF holders are entitled to the full value of the underlying assets, less any costs charged by the ETF issuer.

Benefits of ETFs include:
• Access to liquid markets
• Transparency through daily prices
• Readily available information regarding performance history for comparative analysis
• Low expense ratios

An index is a statistical measure of the changes in the value of a portfolio of equities or bonds over time. The index may represent a portion of the market or the entire market. Investors use indices to track the performance of the equity and bond markets. Ideally the change in the price of an index represents a proportional change in the equities/bonds included in the index. Charles Dow created the first index back in May 1896. At that time, it contained 12 of the largest public companies in the U.S.A. Today the Dow Jones Industrial Average contains 30 of the most influential companies in the U.S.A. Other examples are the FTSE100, S&P500 and JSE All Share Index.
You cannot invest directly in an index as it is merely a statistical measure. To invest in an index you have to use a product that seeks to replicate the index.

Magwitch offer a number of different investment solutions, utilising ETFs to meet the needs of sophisticated investors. These investment solutions are risk profiled and denominated in the major currencies to suit any requirement.  In the event the investor would like a bespoke tailoring to their portfolio we are able to achieve that through our execution only facility.