With the Exchange Traded Funds (ETFs) industry reaching record highs worldwide, Prescient Fund Services, a global full-suite fund services firm, has released a special ETF Evolution Report, offering an overview of the current state and future potential of the South African ETF market.
Timed to coincide with the 25th anniversary of ETFs in South Africa, the report seeks to educate the market, address industry misconceptions and showcase the vast opportunities for both local and offshore investment managers.
Recent data from ETFGI, a leading independent research and consultancy firm, highlights the growth momentum in Europe. At the end of August 2025, assets in the European ETFs industry reached a record US$2.87 trillion, with year-to-date net inflows of US$240.99 billion — the highest ever recorded. August also marked the 35th consecutive month of net inflows into European-listed ETFs, signalling strong and sustained investor appetite.
Driving industry understanding and adoption
“ETFs have become an essential part of the global investment toolkit, yet in South Africa, the full potential is still to be realised,” says Craig Mockford, CEO of Prescient Fund Services, which has a presence in South Africa, the United Kingdom and Ireland. “This report reflects our commitment to helping investors, investment managers and the broader industry globally to understand how to unlock the full value these products can deliver in the markets in which we operate.”
“The entrance of Prescient Fund Services into the ETP markets by providing a platform for facilitating the listing of Actively Managed ETFs on the JSE since early 2024 has been one of the seminal events in the development of the South African ETP market” according to Mike Brown, CEO of ETFSA. “Prescient Fund Services has now brought 20 of the 30 AMETFs to the JSE, accounting for a market capitalisation of some R4,4 billion, with 9 different asset managers in a short period of time. By bringing administrative efficiency, AMETF product knowledge and facilitating liquidity, Prescient Fund Services is rapidly assuming a leading role in adding innovation to the South African ETP industry.”
Drawing on insights from Prescient Fund Services’ experienced team of ETF specialists and supported by market data, client experiences and insights from both South Africa and international markets, the report explores:
- The evolution of the South African ETF market – from the launch of the first ETF in 2000 to the rise of actively managed ETFs (AMETFs).
- Opportunities for institutional investors – how ETFs can be integrated into sophisticated portfolio strategies.
- Retail empowerment – the democratisation of investing through accessible, transparent products.
- Practical guidance for issuers – what’s needed for a successful ETF listing.
- Dispelling myths – challenging outdated perceptions about costs, use cases and active vs. passive strategies.
- African and inward listing opportunities – how ETFs can help deepen regional markets and offer offshore managers a gateway into South Africa.
One of the report’s central aims is to close the knowledge gap. The more educated the market becomes — about structures, strategies and distribution — the more confident issuers and investors will be in embracing ETFs as an investment vehicle.
Looking ahead – the future of ETFs
The report also looks to the next chapter of ETF growth, with trends such as inward listings, actively managed ETFs and thematically focused products set to drive market expansion. Increasing regulatory flexibility, coupled with advances in trading platforms and investor education, are expected to open new avenues for both institutional and retail participation.
“South Africa’s ETF market is developing rapidly, and its growth potential resonates well with trends in Europe and the United Kingdom,” says Mockford. “In the coming years, we expect deeper integration between local and offshore markets — with more dual listings, product innovation and investor cross-pollination.”
Defining the roadmap for ETF success
The report emphasises that achieving this vision will require continuous innovation, industry collaboration and a commitment to transparency and investor education.
Enriched industry timelines and expert commentary, the 33-page report is designed to be a practical reference for anyone seeking to understand or participate in the local ETF market.
The report is available for download on the Prescient website ETF Evolution Report,