Satrix to launch South Africa’s first JSE All-Share ETF

Oct 20th, 2021 | By | Category: Equities

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Satrix Investments is set to list a new ETF in South Africa which will be the country’s first to offer exposure to the full opportunity set of stocks listed on the Johannesburg Stock Exchange (JSE).

Nico Katzke, Head of Portfolio Solutions at Satrix Investments

Nico Katzke, Head of Portfolio Solutions at Satrix Investments.

The Satrix Capped All Share ETF (STXCAP SJ) is scheduled to list on JSE on 10 November.

The fund is linked to the FTSE/JSE Capped All Share Index – a broad market benchmark covering 99% of the full market cap of the JSE’s main board.

Constituents are weighted by float-adjusted market capitalization subject to an individual cap of 10%.

As of September month-end, the index contained 140 names with approximately 25% of its exposure dedicated to mid and small-caps.

Stocks from the materials sector accounted for just under a third (31.3%) of the total weight with financials (18.9%), consumer discretionary (13.0%), technology (12.1%), and consumer staples (7.8%) also playing notable roles.

The largest positions in the index included BHP (9.4%), Compagnie Financiere Richemont (9.3%), Anglo American (8.8%), Naspers (7.0%), and Prosus (4.8%).

Nico Katzke, Head of Portfolio Solutions at Satrix Investments, said: “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.

“The fund includes high offshore exposure – via stocks like BHP, Richemont, and Prosus – which provides investors with a good rand hedge. The FTSE/JSE Capped All Share Index 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.”

The ETF will maintain an expense ratio of 0.25% which will be waived until 1 June 2022.

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