South Africa’s Satrix has launched the first ETF on the JSE to include the full universe of large-, mid-and small-cap South African-listed companies.
The firm writes that by tracking the FTSE/JSE All Share Index (ALSI), the Satrix Capped All Share Index (CAPI) gives investors exposure to large multinational companies such as BHP Group, Richemont and the Naspers – Prosus stable, while providing broader exposure to the marker than other tracking indices such as the Top 40 Index.
Nico Katzke, head of portfolio solutions at Satrix Investments, says, “Our new Capped All Share ETF is ideal for investors seeking exposure to the JSE beyond the Top 40 listed shares. Investors looking for stability and outperformance, particularly relative to most active managers, should look closely at this ETF.”
Katzke says each individual share in the portfolio would be capped at 10 per cent to limit single stock exposure. “The fund also includes high offshore exposure – via stocks like BHP, Richemont and Prosus – which provides investors with a good rand hedge, similar to the Top 40 index. The CAPI has delivered a more stable return profile due to improved diversification and capping limits, which means there is lower overall concentration risk and additional upside potential from mid-and small-cap counters. The result has been strong and consistent performance relative to other actively managed SA General Equity unit trust funds over time.”
Katzke adds that since September 2020, Satrix has launched five new ETFs. “Most recently, South Africa’s pioneering ETF business listed the country’s first-ever Inclusion and Diversity ETF, which empowers investors to invest in the JSE’s most inclusive and diverse companies. It also launched the Satrix Global Infrastructure Feeder ETF, which tracks a diverse portfolio of the largest and most liquid infrastructure companies in developed and emerging markets – at a time when developed markets are embarking on large scale infrastructure spending. This also followed the highly successful launch of our China ETF.”
Katzke further points to Satrix’s leading role in pioneering easy to access, low-cost ETFs in South Africa. “Twenty years ago, Satrix launched South Africa’s first-ever ETF, the award-winning Satrix Top 40 ETF, with the intention of making low-cost, diversified investment products cheaper and more accessible. It remains our mission to provide clients with a full spectrum of diversified products to grow future wealth. We continue to pioneer relevant solutions, with deep social impact alongside robust returns. We now manage over R150 billion in assets, making Satrix the largest index tracking business on the continent.”