The best Africa ETFs

How do I invest in African stocks?

The easiest way to invest in the whole African stock market is to invest in a broad market index. This can be done at a low cost by using ETFs.

In this investment guide, you will find all ETFs that allow you to invest broadly diversified in African stocks. Currently, there are 2 ETFs available.

The total expense ratio (TER) of ETFs tracking stocks from Africa is between 0.65% p.a. and 0.85% p.a..

 
0.65% p.a. - 0.85% p.a.
annual total expense ratio (TER) of Africa ETFs
tracking stocks from Africa, which are tracked by ETFs
that track a broadly diversified Africa index
 
The best indices for Africa ETFs

How do I invest in companies from Africa?

Africa ETFs allow you to invest broadly in African companies. The range of Africa ETFs is still very limited. This limitation is due to less developed capital markets and political risks in many African countries. In this curated investment guide, you will find all ETFs that allow you to invest in the African stock market.

ETFs on the most important African capital market, South Africa, can be used as an alternative to ETFs covering the whole African continent. African companies are also included in many emerging markets ETFs, but usually only to a small extent.
 

Performance of broadly diversified Africa indices in comparison

Source: justETF Research; As of 19.09.21; Performance over 1 year in EUR.

 

Indices in comparison

Indices on stocks from Africa

The best indices for Africa ETFs

For an investment in stocks from Africa, there are 2 indices available that are tracked by 2 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.65% p.a. and 0.85% p.a.. Depending on the market environment, stocks from a single country can make up large parts of an index. You can find more information regarding the concentration of countries, companies and sectors in the index factsheets linked below.
 
Index Investment focus Number of ETFs Number of constituents Short description
MSCI Emerging and Frontier (EFM) Africa Top 50 Capped Africa 1 ETF 50
The MSCI Emerging and Frontier (EFM) Africa Top 50 Capped index tracks the 50 largest companies from emerging and frontier markets in Africa. The share of single countries and companies is limited.
Index factsheet
SGI Pan Africa Africa 1 ETF 30
The SGI Pan Africa index tracks 30 large stocks listed in Africa or predominantly exploring African assets. The index is equally exposed to three zones with the largest constituents capped at 10%: South Africa, Northern Africa including Morocco, Egypt and Sub-Sahara excluding South-Africa.
Index factsheet
Index 1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
5 years
in %
SGI Pan Africa 1.79% -1.94% 4.83% 8.70% 0.66% 7.42%
MSCI Emerging and Frontier (EFM) Africa Top 50 Capped 3.26% 0.00% 8.06% 26.50% 2.05% 5.29%

Source: justETF.com; As of 31.08.21; Calculations in EUR based on the largest ETF of the respective index.

 

ETFs in comparison

ETFs tracking stocks from Africa

All Africa ETFs in comparison

In the table below we have listed the currently available Africa ETFs. Via the "Properties" and "Performance" tabs, you can find detailed information on these ETFs and sort them according to your desired criterion. More information about the different criteria when choosing an ETF can be found in our article on ETF selection.
 
ETF
ISIN
Fund size
in m EUR
TER
in %
Inception date Use of profits Fund domicile Replication method
Lyxor Pan Africa UCITS ETF - AccLU1287022708 37 0.85% p.a. 12.09.08 Accumulating Luxembourg Unfunded swap
Xtrackers MSCI EFM Africa Top 50 Capped Swap UCITS ETF 1CLU0592217524 33 0.65% p.a. 09.05.11 Accumulating Luxembourg Unfunded swap
ETF
ISIN
1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
5 years
in %
Lyxor Pan Africa UCITS ETF - AccLU1287022708 1.79% -1.94% 4.83% 8.70% 0.66% 7.42%
Xtrackers MSCI EFM Africa Top 50 Capped Swap UCITS ETF 1CLU0592217524 3.26% 0.00% 8.06% 26.50% 2.05% 5.29%

Source: justETF.com; As of 31.08.21