P500 Investment In NewGold ETF Now Worth P604

Aupa Monyatsi, CEO of the BSE

• P500 investment in NewPall would have deteriorated to just P247

• NewPlat delivered modest gains, with a P500 investment growing to P516, a 3.2% increase

The first quarter of 2025 has delivered dramatically different results for investors in precious metals Exchange Traded Funds (ETFs), with gold delivering standout returns while palladium suffered substantial decline in value.

What are ETFs?

ETFs are investment products you can buy and sell on the stock market, just like regular shares.

They are designed to follow the performance of things like:

• A group of companies (an index),

• A commodity (like gold),

• Or a mix of different assets.

Think of them like a basket filled with different investments — when you buy an ETF, you're buying a small piece of everything in that basket.

• The ETFs offer the opportunity to invest in the metals, as they track the Rand price of the metals, fully backed by physical bullions.

• They are one of the simplest and cost-effective ways of directly investing in actual metals.

An analysis of three major precious metal ETFs listed on the Botswana Stock Exchange (BSE) reveals that a P500 investment in NewGold would have yielded P604 by quarter-end – a gain of 20.8% in just three months.

The analysis is based on market prices released by the BSE, assuming a P500 investment was made from January 6th 2025 to March 31 2025.

Source of information: BSE

In stark contrast, the same P500 investment in NewPall would have deteriorated to just P247, representing a staggering 50.7% decline in value. NewPlat delivered modest gains, with a P500 investment growing to P516, a 3.2% increase.

NewGold ETF

• Starting price (Jan 6): P331.70

• Ending price (Mar 31): P400.70

• Price change: +P69.00 (+20.8%)

• If you invested P500, you would now have about P604 (a gain of P104)

NewPlat

• Starting price (Jan 6): P125.75

• Ending price (Mar 31): P129.75

• Price change: +P4.00 (+3.2%)

• If you invested P500, you would now have about P516 (a gain of P16)

NewPall

• Starting price (Jan 6): P259.50

• Ending price (Mar 31): P128.00

• Price change: -P131.50 (-50.7%)

• If you invested P500, you would now have about P247 (a loss of P253)

  
  

Had an investor divided P500 equally among all three ETFs in early January, estimates show that their portfolio would be worth approximately P456 by March-end, a modest 8.8% decline.