Niki Giles, Head of Strategy at Prescient Fund Services

For many South African women, financial independence is about far more than building wealth.  It’s about creating choices, security and freedom.

One of the simplest and most accessible ways for women to begin building long-term wealth is through Exchange Traded Funds (ETFs), which have helped democratise investing by making it possible for anyone to invest, regardless of how much money they have to start with.

“Financial independence gives women the freedom to make decisions on their own terms,” says Niki Giles, Head of Strategy at Prescient Fund Services. “The good news is that you don’t need thousands of rands to begin investing. ETFs have levelled the playing field by giving every investor access to the same investment opportunities, whether they invest R100 or R10 million.”

Whether saving for a child’s education, planning for retirement or simply wanting money to work harder, understanding investment options is the first step towards building lasting financial security.

ETFs: Investing made accessible

An ETF is a collection of investments, such as shares, bonds or commodities, bundled into a single fund and listed on the Johannesburg Stock Exchange (JSE). Like shares, ETFs can be bought and sold throughout the trading day, giving investors flexibility and real-time access to their investments.

“Think of an ETF as a ready-made fruit salad,” explains Giles. “Instead of buying each piece of fruit separately, you buy one bowl that gives you a variety. That instant diversification helps reduce risk.”

For women who may have delayed investing because they believed they needed significant capital or specialist knowledge, ETFs provide an accessible entry point.

Why ETFs are an ideal place to start

ETFs have become increasingly popular because they remove many of the traditional barriers to investing.

• Affordable: You can start investing with as little as R100 through online investment platforms or banking apps.
• Equal access: Whether you invest R100 or R10 million, everyone pays the same management fee.
• Diversification: A single ETF can provide exposure to dozens or even hundreds of companies or other assets, helping spread investment risk.
• Flexibility: ETFs trade throughout the day, allowing investors to buy or sell when they choose.

“One of the biggest misconceptions is that investing is only for wealthy people,” says Giles. “ETFs prove that’s no longer true. They make investing accessible, transparent and fair for everyone.”

Understanding your options

While ETFs are often an excellent starting point, it’s helpful to understand how they compare with other investment vehicles.

• ETFs are listed on the JSE and traded like shares throughout the day. They are passive investments, which means they simply track a defined basket of shares rather than trying to pick winners They offer transparent pricing and the same management fees for all investors.
• Unit Trusts are not listed on the JSE and are priced once a day. They may have different fee classes depending on the amount invested.
• Actively Managed ETFs (AMETFs) combine the transparency and tradability of ETFs with active portfolio management designed to pursue specific investment strategies.

Breaking down barriers to wealth creation

Historically, smaller investors often faced higher relative costs or fewer investment opportunities than those with larger portfolios. ETFs have helped change this by offering the same percentage-based fees to every investor, regardless of investment size.

This fairness is particularly important for women, who globally and in South Africa continue to face challenges such as gender pay disparities, career interruptions and longer life expectancies, all of which make long-term investing even more important.

Investing is now in your pocket

The growth of mobile-first investment platforms such as EasyEquities has further transformed access to investing, allowing South Africans to start building wealth with little more than a smartphone and R100.

“The digital era has made investing as easy as online shopping,” says Giles. “It’s removing barriers and empowering more South Africans, especially women who may have felt excluded from investing in the past to take control of their financial futures.”

Knowledge remains your greatest investment

While ETFs are designed to be simple, transparent and cost-effective, understanding what you’re investing in remains essential.

“Know what’s inside the ETF, understand the risks and make sure it aligns with your long-term financial goals,” says Giles. “Building wealth isn’t about timing the market.  It’s about starting, staying invested and allowing time to work in your favour.”

As South Africa celebrates Women’s Month, the message is clear: financial independence starts with taking the first step. By making investing more accessible, affordable and transparent, ETFs are helping more women build wealth, achieve financial security and create greater freedom for themselves and their families.

ENDS