A share (also called a stock or equity) is a unit of ownership in a company. When you buy a share, you become a part-owner of that company. You may have rights such as voting at shareholder meetings and receiving a portion of the company's profits, called a dividend.

Shares are bought and sold on stock exchanges. South African companies are listed on the JSE (Johannesburg Stock Exchange). Investor gives you access to shares listed on major international exchanges, including the New York Stock Exchange, NASDAQ, and the London Stock Exchange around 14,500 shares and ETFs across major global markets in total.

You can earn money from shares in two ways. The share price may rise, so you can sell at a higher price than you paid (this is called a capital gain). The company may also pay you a portion of its profits as a dividend.

Share prices fluctuate based on company performance and market conditions, they can rise if the business does well or fall if it struggles. 

As a shareholder, you may earn returns through price growth (capital gains if the stock’s price increases) and sometimes dividends (cash payouts of profits). There’s no leverage, you pay the full share price when investing.

Shares typically suit investors with a long investment horizon, 5 years or more, who can tolerate the value of their investment going up and down in the short term. They are often used as a core part of building wealth over time, including for retirement and education savings.

Shares are not generally suitable for money you may need within the next 1 to 2 years, or for investors who cannot accept the possibility of losing part of their investment.

Over time, equities have potential for higher returns than many other assets, making them a key component in growth portfolios. Shares allow diversification across sectors/companies and can beat inflation over long periods. They can also be traded more short-term by active investors, but for most retail clients’ shares are used for medium to long-term investment goals (e.g. retirement savings, education funds). 

• Stock markets are volatile. A share’s price can swing significantly day to day and there’s no guaranteed return. You can lose money if the company underperforms or markets decline. In a worst case (e.g. a company goes bankrupt), a share’s value can drop to zero.
• Diversification (holding multiple companies across industries) is critical to manage risk. Investing in shares requires research and staying informed about the companies and economic trends.
• Company risk: if the company performs poorly, your shares can lose value. If it goes bankrupt, the shares can become worthless.
• Currency risk: when you buy a share listed outside South Africa, your return depends on the rand exchange rate as well as the share price.
• Concentration risk: holding only a small number of shares exposes you to the fortunes of those few companies. Spreading your investment across companies, sectors, and regions (diversification) reduces this risk.

Investors seeking higher growth potential and willing to accept short-term volatility. 

Shares are generally not “safe” or capital-guaranteed, they suit those with a long investment horizon (5+ years) and some risk tolerance. 

An Exchange-Traded Fund (ETF) is an investment fund that trades on a stock exchange like an ordinary share. Each ETF typically tracks an index or a basket of assets, for example the JSE Top 40, a global technology index, a commodity like gold, or a specific sector.

When you buy one ETF unit, you get exposure to all the underlying assets in that fund. So instead of buying 40 different shares to track the JSE Top 40, you can buy a single ETF that does it for you. ETFs can hold the actual underlying assets (shares or bonds in proportion to the index) or be structured as notes (debt instruments that promise the index's return). Income from the underlying holdings, dividends or interest  is either paid out to you or reinvested in the fund.

ETFs trade like shares. You buy and sell them on the exchange at fluctuating market prices through the same trade ticket you use for shares. ETFs are structured either as funds holding actual assets (e.g. shares or bonds in proportion to the index) or as notes (debt instruments promising the index returns). 

They trade throughout the day on the exchange at fluctuating market prices, just like ordinary shares. The fund’s value rises or falls with the performance of its underlying index/assets. Dividend or interest income from the underlying holdings is usually passed through to ETF investors (or reinvested, depending on the fund).

ETFs offer a simple, cost-effective way to diversify. They are popular with investors who don’t want to pick individual stocks or have limited capital but still want exposure to broad markets. For example, one can buy an ETF that tracks the JSE All Share Index to invest in the overall South African stock market, or a global ETF for international exposure. Passive investors favour ETFs to achieve market returns with low fees. They can be core building blocks of long-term portfolios (e.g. in a retirement annuity or Tax-Free Savings Account).

They suit beginners and experienced investors alike. The right ETF depends on your risk tolerance: a broad market ETF is moderate risk, while a sector or single-commodity ETF can be much higher risk.

• Market risk still applies an ETF’s value will drop if its underlying index or assets fall. While ETFs reduce single-company risk (because they hold many assets), they don’t eliminate risk; for example, a JSE Top 40 ETF will decline if the overall stock market declines. Some ETFs (especially specialised or sector ETFs) may be volatile if they track a narrow market segment.
• Liquidity risk: niche ETFs may be harder to sell quickly at a fair price than mainstream ones.
• Concentration risk in specialist ETFs: a single-sector or single-commodity ETF can be very volatile.
• Currency risk for offshore ETFs: returns depend on the rand exchange rate as well as the underlying performance. 

ETFs can be suitable for beginners, passive, experienced and active investors alike who want broad exposure and diversification without the complexity of picking individual investments. 

They serve well for medium to long-term investment and can fit those with lower to moderate risk appetite (depending on the ETF’s focus a broad market ETF is moderate risk, while an exotic leveraged or sector ETF can be higher risk).

An Actively Managed Certificate (AMC) is a listed investment product that gives you access to a professionally managed portfolio or strategy in one instrument.

Instead of choosing and managing individual investments yourself, an expert (such as an asset manager or investment specialist) actively decides what to buy or sell within the certificate to meet a specific objective (for example, growth, income, or capital preservation).

• You buy an AMC like a listed instrument on a trading platform, similar to a share or ETF.
• The underlying portfolio is actively managed by a professional manager.
• The value of the certificate moves based on the performance of the underlying investments.
• The manager can adjust the portfolio over time to respond to market conditions or opportunities.

• A hands-off way to access expert investment strategies.
• Investing in global or diversified portfolios without managing them yourself.

• Though professionally managed and diversified, mutual funds do not guarantee profits or protection from losses.
• Their value depends on market conditions and the manager’s decisions. Fees (management fees, sometimes performance fees) are charged and will reduce your returns over time, it’s important to choose funds with appropriate costs and strong track records.
• Liquidity is good (you can typically cash out within a few days) but note that markets can be volatile, e.g. an equity mutual fund will drop in a stock market downturn, just as if you held stocks directly. 

• Want professional decision-making.
• Prefer simplified access to complex strategies.
• Are looking for growth or income over the medium to long term.

An Exchange-Traded Note (ETN) is a listed investment product that tracks the performance of an index, asset, or strategy.

Unlike ETFs, an ETN does not own the underlying assets. Instead, it is a debt instrument issued by a financial institution that promises to pay you the return of the tracked investment.

ETNs can provide exposure to:

• Equity indices.
• Commodities.
• Currencies.
• Thematic or strategy-based returns.

• You buy and sell ETNs on an exchange, similar to shares or ETFs.
• The issuer promises to deliver the return of the underlying index or asset.
• The price of the ETN moves based on:
  • The performance of the underlying market, and
  • The credit quality of the issuer
• ETNs can be traded throughout the day, offering liquidity and flexibility.

• Investors who understand both market risk and issuer risk, and want targeted exposure to specific indices or strategies via a listed instrument.
• Gaining exposure to specific markets or strategies that may be difficult to access directly.
• Investing in commodities, indices, or niche asset classes.
• Used by investors who want a tradable, exchange-listed instrument with simple access.

• Credit risk: The biggest difference vs ETFs, if the issuer defaults, you could lose your investment.
• Market risk: Returns depend on the performance of the underlying asset or index.
• No asset ownership: You do not own the underlying investments directly.
• Liquidity risk: Some ETNs may be less actively traded.
• Currency risk: Applies if the ETN tracks offshore assets.

• An Exchange-Traded Commodity (ETC) is a listed investment product that tracks the price of a single commodity or a basket of commodities (such as gold, silver, oil, or agricultural products).
• ETCs allow you to invest in commodities without physically buying or storing them.
• Depending on the structure, ETCs may be:
  • Physically backed (e.g. backed by gold holdings), or
  • Derivative-based (tracking commodity prices through contracts).

• ETCs trade on an exchange, just like shares or ETFs.
• Their value moves in line with the price of the underlying commodity.
• You gain exposure to commodity price movements without dealing with:
  • Storage.
  • Insurance.
  • Physical delivery.

• Investors looking to diversify their portfolios with commodities and who are comfortable with price volatility and market-specific risks.
• Diversifying a portfolio beyond shares and ETFs.
• Gaining exposure to commodities like gold (safe-haven) or oil (growth-linked).
• Hedging against:
  • Inflation.
  • Currency weakness.
• Adding alternative assets to a long-term portfolio.

• Price volatility: Commodity prices can fluctuate significantly.
• Market-specific risk: Prices can be affected by supply/demand, geopolitical events, and global trends.
• Structure risk: Some ETCs use derivatives, which can introduce additional complexity.
• Currency risk: Offshore commodities are affected by exchange rates.
• No income: Most ETCs do not pay dividends or interest.