How to invest in the S&P 500

Good morning! A year back, the Botswana Stock Exchange promised us we would have S&P 500 ETFs and others, but it didn’t happen. This year, about 2 weeks back, I tried to ask about it but could not get any response. But it’s still possible, although I would prefer it to be more available in our market.

So if you’re the type of person who does not want to wait for such an opportunity, you surely can find your way to invest in the S & P. There are various brokers to help with that, but let me share one close to home:

You can invest in the S&P 500 from Botswana using EasyEquities, a South African-based investment platform that accepts international investors. Here's how you can do it:

How to Invest in the S&P 500 via EasyEquities

1. Open an EasyEquities Account

Visit EasyEquities and click on “Register.” Provide your personal details, including your address. Upload the required documents: a valid passport or national ID and proof of residence

2. Fund Your Account

EasyEquities offers various funding methods. For Botswana residents, international bank transfers are commonly used. Ensure you follow the platform's instructions for funding from outside South Africa.

3. Choose Your S&P 500 Investment: EasyEquities provides several options to gain exposure to the S&P 500

• Satrix S&P 500 ETF (JSE: STX500) -Tracks the S&P 500 index- Offers a low total expense ratio (TER) of 0.25%- Suitable for long-term investors seeking diversified exposure to U.S. equities

• Sygnia Itrix S&P 500 ETF (JSE: SYG500) -Also tracks the S&P 500 index: Provides a TER of 0.20%-Offers a rand hedge benefit, as returns are influenced by both the index performance and the rand-dollar exchange rate.

• Investec S&P 500 Digital Plus (Structured Product) -Offers a guaranteed return of 40% after 3.5 years if the S&P 500 performs well. Provides 100% capital protection in rand, provided the index doesn't fall by more than 30% from the initial level to maturity. Suitable for investors seeking structured exposure with capital protection features.

4. Place Your Investment

-Log into your EasyEquities account- Navigate to the “Invest Now” section

-Search for your chosen ETF or structured product (e.g., STX500, SYG500, or Investec S&P 500 Digital Plus). Enter the amount you wish to invest and confirm the transaction.

Advantages of Using EasyEquities

• Low Minimum Investment: Start investing with as little as R5 (~$0.25)

• Fractional Shares: Purchase portions of shares, making high-priced stocks more accessible

• User-Friendly Platform: Designed for both beginners and experienced investors

• Access to International Markets: Invest in both local (JSE) and international (NYSE, NASDAQ) markets

Some Things to Consider

• Currency Exchange: Investments are made in South African Rand (ZAR), so be mindful of exchange rate fluctuations between BWP and ZAR.

• Tax Implications: Consult with a tax advisor to understand any tax obligations in Botswana related to foreign investments

• Regulatory Differences: As EasyEquities is based in South Africa, ensure you understand the regulatory environment and protections in place