Master of Commerce in Finance graduate Ms Prianca Naidoo is setting out to carve a path for herself in the competitive world of finance and investments.

Driven by a deep-rooted passion for financial markets and a keen interest in how global economic systems work, she has completed her Master of Commerce in Finance with a research study that contributes meaningfully to the understanding of Exchange Traded Funds (ETFs).

Her study, titled: “The Tracking Performance of Equity Exchange Traded Funds: A Consideration of Fund Replication Strategy, Fund Domicile, and Crisis Period”, explores the performance dynamics of equity ETFs.

Her research was presented at the Southern African Finance Association (SAFA) Conference in January 2025, and efforts are underway to publish it in the Investment Analysts Journal (IAJ).

‘My research focused on quantifying how factors such as the type of replication strategy employed by the fund, the level of development of the fund’s country of origin, and crisis periods – such as the Global Financial Crisis of 2008 and the COVID-19 pandemic – have impacted how well these funds deliver on their goal: to replicate the returns of the respective benchmark index they track, such as the S&P 500,’ she said.

‘Key findings from the study revealed that partial replication strategies – where a selected subset of an index is tracked using quantitative techniques – outperform full physical replication.

‘Additionally, synthetic ETFs, which use swap-based contracts, showed superior performance in emerging markets and remained relatively stable during crises, with solid recovery thereafter,’ she said.

Naidoo added that the study’s findings are particularly relevant for investors and portfolio managers.
She recommends that professionals consider replication strategy, fund origin and market volatility when selecting ETFs.

Beyond her academic achievements, her inspiration stems from strong personal values and influences. For her, this research is more than an academic requirement – it is a reflection of her passion and a step towards influencing how the finance community approaches ETF investing.

‘The importance of this study to me links back to my passion for financial markets and investments.

‘It is also integral that my research impacts how other finance professionals think about and carry out equity ETF investing,’ she said.

Her journey from a Bachelor of Business Science in Finance and Economics to completing a Master’s in Finance reflects a commitment to continuous learning and a desire to apply her knowledge meaningfully in the corporate finance world.

Naidoo also attributes much of her growth to her environment, including her supervisor Professor Kerry McCullough, and the unwavering support of her family.

Words: Ayanda Radebe

Photograph: Sethu Dlamini