FNB launches Nvidia and Palo Alto Networks ETNs

Jan

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FNB launches Nvidia and Palo Alto Networks exchange-traded notes

First National Bank has announced an expansion of its exchange-traded note (ETN) offering, adding ETNs from companies like Nvidia and Palo Alto Networks.

Altogether, the bank has added eight new ETNs, bringing its total offering to 50. It says the ETNs are designed to give South African investors easy and affordable access to leading international companies.
 
I personally don't get Nvidia's sky high valuation. They don't have an insurmountable moat when it comes to AI hardware and software. Yes they are doing well now, but the future is really going to be determined by TOPS/watt or similar and a lot of competition is on the way. Yes - they might do well, I just don't thing the current valuation is realistic considering that the entire market is in its infancy.
 
I personally don't get Nvidia's sky high valuation. They don't have an insurmountable moat when it comes to AI hardware and software. Yes they are doing well now, but the future is really going to be determined by TOPS/watt or similar and a lot of competition is on the way. Yes - they might do well, I just don't thing the current valuation is realistic considering that the entire market is in its infancy.
Won't be able to compete with Nvidia + TSMC.
 
I personally don't get Nvidia's sky high valuation. They don't have an insurmountable moat when it comes to AI hardware and software. Yes they are doing well now, but the future is really going to be determined by TOPS/watt or similar and a lot of competition is on the way. Yes - they might do well, I just don't thing the current valuation is realistic considering that the entire market is in its infancy.
They have the contracts with TSMC's limited production capacity, meaning that very few companies can compete in volume.

But you are correct that the AI bubble in inflating all the companies share value beyond what is reasonable. It just depends on when the investors realize that we don't yet have the processing power to make AI sustainable, and that is unlikely to happen in the next few years. We need something better than our current silicon based chips first.
 
Wondering why everybody talks about the Nvidia relationship with TSMC. TSMC manufactures for everybody. Nvidia doesn't have a particular good relationship with TSMC - they often have to use Samsung because TSMC doesn't have to negotiate with Nvidia. Apple is TSMCs biggest customer by a country mile, and AMD has amazing relationship with TSMC
. Remember TSMC gets paid per wafer - just because Nvidia silicon sells more per square mm in the market doesn't mean TSMC gets more. In fact it wouldn't surprise me at all of AMD has more TSMC capacity booked than Nvidia.


And Sure, nvidia might have capacity booked for the next 24 months but that is hardly a moat. Because it is not exclusive and it is short-term.

All those fabs built in the US under the Chips act, and fabs built elsewhere need to be filled up with something.

So don't get me wrong - Nvidia has some great tech. I am just cautious about people claiming they will be the eventual victor. A lot of companies with an early lead got whacked.

I don't think their valuation is realistic. They can ask high margins now because the market is constrained and competition is still slow. But margins will come down as competition gears up.
 
A bit late to give us Nvidia.. How about give us some BABA exposure
 
To save others the pain of looking, the 8 ETNs are just the 4 listed in the article but the compo and quanto variants. I didn't understand why 8 new ones were mentioned but only 4 listed.

It's nice that they are expanding their range of ETNs, just wish they would add more really.

I have been using their Shares Zero account to trade these for a while now. But bloody hell, I have never encountered a more buggy system in my life. And of course the pain of dealing with their support is not worth it, so its always a matter of tapping and hoping with their system.
 
To save others the pain of looking, the 8 ETNs are just the 4 listed in the article but the compo and quanto variants. I didn't understand why 8 new ones were mentioned but only 4 listed.

It's nice that they are expanding their range of ETNs, just wish they would add more really.

I have been using their Shares Zero account to trade these for a while now. But bloody hell, I have never encountered a more buggy system in my life. And of course the pain of dealing with their support is not worth it, so its always a matter of tapping and hoping with their system.
You should be able to buy them using easy equities as well. I am pondering moving my FNB Brokerage account to easy equities.
 
To save others the pain of looking, the 8 ETNs are just the 4 listed in the article but the compo and quanto variants. I didn't understand why 8 new ones were mentioned but only 4 listed.

It's nice that they are expanding their range of ETNs, just wish they would add more really.

I have been using their Shares Zero account to trade these for a while now. But bloody hell, I have never encountered a more buggy system in my life. And of course the pain of dealing with their support is not worth it, so it’s always a matter of tapping and hoping with their system.
Their system is so bad it feels like an afterthought or a check box exercise. ETN options are behind the curve and aren’t well documented, the system UX is both poor and quirky as hell, and there is no response to any support queries.

It is kind of a demonstration of the big flaw in FNBs innovation strategy. It’s one thing to introduce innovation, but another thing to keep it maintained and logically integrated into the holistic customer experience.
 
Their system is so bad it feels like an afterthought or a check box exercise. ETN options are behind the curve and aren’t well documented, the system UX is both poor and quirky as hell, and there is no response to any support queries.

It is kind of a demonstration of the big flaw in FNBs innovation strategy. It’s one thing to introduce innovation, but another thing to keep it maintained and logically integrated into the holistic customer experience.
Eh? An ETN is an exchange traded note - it is not a product. Anybody can buy it using any JSE brokerage - you don't have to use FNB to buy it. FNB is just the issuer.

So sure - FNB is terrible with UX and other things but that has nothing to do with ETNs.
 
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