South Africa’s ETF market has entered a new phase. Historically dominated by passive index-tracking products, the market has expanded since 2023 to include actively managed ETFs (AMETFs) — a structural shift enabled by regulatory changes from the JSE.
These new instruments allow fund managers to apply discretion in portfolio construction without being tied to a benchmark.
This evolution is particularly significant for multi-asset investing. Investors can now gain access to balanced portfolios — those combining equities, bonds, property, cash and offshore exposure — through listed instruments that are actively managed. The result is a more dynamic, transparent and accessible way to invest in diversified strategies that were previously available only through unlisted collective investment schemes (CISs).
Regulatory evolution
The JSE’s October 2022 rule change was a pivotal moment. Before this, ETFs in South Africa were required to track a published index, effectively excluding any form of discretionary management. The new framework permits the listing of AMETFs, enabling fund managers to construct portfolios based on active decisions, while still offering the liquidity and transparency of listed securities.
This development mirrors broader trends in Europe, where AMETFs have gained traction. According to research and consulting firm ETFGI, European ETF assets surpassed $3-trillion at the end of September 2025, up from $2.27-trillion at the end of 2024 — a 32.6% year-to-date increase. Active ETFs alone attracted about $27bn in net inflows year to date, more than double the amount gathered by this point in 2024.
The balanced fund landscape
South Africa’s CIS industry had nearly R4-trillion in assets under management as of mid-2025, with 49.5% of those assets held in multi-asset portfolios. These balanced funds have long been the preferred choice for retirement savers and discretionary investors, offering a blend of growth and income across asset classes. However, they remain unlisted, requiring investors to transact through platforms or intermediaries, often with limited transparency and delayed settlement.
The introduction of balanced AMETFs changes this dynamic. Investors can now access actively managed multi-asset portfolios directly on the JSE, with real-time pricing, daily transparency and intraday tradability. This innovation enhances accessibility and introduces a new layer of flexibility for portfolio construction and asset allocation.
This development mirrors broader trends in Europe, where AMETFs have gained traction
Regulation 28
One of the new arrivals to note is the regulation 28-compliant balanced portfolio in ETF format. Regulation 28 of the Pension Funds Act governs the asset allocation of retirement funds in South Africa, ensuring diversification and limiting risk by capping exposure to certain asset classes. Traditionally, investors seeking regulation 28-compliant solutions have relied on unlisted balanced unit trusts or CIS funds.
With the launch of balanced AMETFs that comply with regulation 28, investors can now purchase such an ETF on the JSE, just as they would any other share or ETF. This innovation is particularly relevant for retirement savers, pension funds and advisers who need to ensure compliance with regulation 28 while seeking the benefits of active management and multi-asset diversification.
A growing market with expanding choice
The market for AMETFs is growing rapidly. There are now more than 30 AMETFs listed on the JSE. They feature several balanced strategies and include:
- EasyETFs Balanced Actively Managed ETF: a high-equity multi-asset strategy combining quantitative and qualitative approaches;
- Prescient Balanced Feeder Actively Managed ETF: a regulation 28-compliant fund offering exposure to local and global equities, bonds, property and cash; and
- ETFSA Balanced Foundation Prescient AMETF: designed for long-term investors seeking diversified exposure across asset classes.
With more of these balanced AMETFs expected to come to market, investors will benefit from increased choice, better market dynamics and the ability to tailor portfolios to specific risk and return objectives.
Investor profile and strategic appeal
Balanced AMETFs are likely to appeal to a broad spectrum of investors:
- Retail investors seeking diversified exposure in a single listed product;
- Financial advisers looking for regulation 28-compliant solutions with transparent pricing and daily liquidity; and
- Institutional investors interested in tactical asset allocation and real-time execution.
These products offer the strategic flexibility of traditional balanced funds but with the operational efficiency of ETFs. They are particularly well suited to investors who value transparency, tradability and the ability to respond quickly to market conditions.
The balanced AMETF is here to stay, and its role in shaping the future of investing in South Africa is only just beginning.
Giles is head of strategy at Prescient Fund Services
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