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FNB’s Latest ETNs Open Doors to Global Industry Giants

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First National Bank (FNB) has broadened its Exchange-Traded Note (ETN) selection by introducing new 8 ETNs, expanding its popular range to a total of 50. These additions aim to provide South African investors with convenient and affordable access to leading global companies in key sectors such as AI and technology, tourism and travel, pharmaceuticals, and cybersecurity.

Sebastian Pillay, Head of Share Investing at FNB,
Sebastian Pillay, Head of Share Investing at FNB,

Sebastian Pillay, Head of Share Investing at FNB, defines ETNs as financial instruments enabling investors to gain international exposure to underlying assets or indices without direct ownership or offshore transactions.

“ETNs are debt securities issued by financial institutions, and their value fluctuates based on specific market indices or assets. Investors benefit from diversifying into global markets without navigating complex exchange control regulations,” explains Pillay.

FNB’s new ETN range offers direct exposure to thriving global sectors that may otherwise be challenging for investors to access.

The four new ETN sectors include:

  • AI and Tech: The Nvidia ETNs (NVETNC & NVETNQ) align investors with advanced technological and AI development sectors that are driving the next wave of digital transformation and have seen significant growth in recent years.
  • Tourism and travel: FNB’s Booking Holdings ETNs (BKETNC & BKETNQ) capitalize on the global travel sector’s continued revival in the post Covid-19 era, promising growth as economies recover and travel steadily increases.
  • Pharmaceuticals: The Eli Lilly and Co ETNs (LLETNC & LLETNQ) offer an opportunity to benefit from investment in a company at the forefront of the burgeoning healthcare sector thanks to its proven track record of medical innovation.
  • Cybersecurity: The Palo Alto Networks ETNs (PAETNC & PAETNQ) provide an avenue for investment in the protection of digital assets, an increasingly critical component of global security infrastructure as the world becomes increasingly digitized.

Each FNB ETN caters to investors’ currency exposure preferences. ‘Compo’ versions offer US dollar and price exposure, while ‘Quanto’ versions mitigate currency fluctuations and provide price movement exposure.

These new ETNs align with FNB’s focus on growth sectors, innovation, and strategic responses to local market challenges. The ETNs enable portfolio diversification across various sectors and borders.

FNB’s ETN range has gained popularity among South African investors due to access to global market leaders like Goldman Sachs, Amazon, Alphabet, and Facebook.

With a low minimum investment requirement of just R10 and no minimum fees, FNB underscores its commitment to democratizing investment access. Pillay emphasizes FNB’s mission to empower South Africans financially by simplifying investment access and potential for substantial growth.

Investors can access FNB ETNs, including the new offerings, through FNB Share Builder, Share Investor, Local Trader, or FNB’s Shares Zero investment product. Alternatively, they can search for ETN codes on any stockbroking platform offering access to JSE-listed instruments.

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