Sygnia unveils four new ETFs in South Africa

Oct 31st, 2017 | By | Category: Equities

South African asset manager Sygnia has unveiled four new ETFs on Johannesburg Stock Exchange (JSE) as part of its Sygnia Itrix range. The funds provide exposure to a range of local and international asset classes including JSE-listed equities, US equities and global property.

Sygnia unveils four new ETFs in South Africa

Sygnia’s new range of ETFs offers investors exposure to South African equities, US equities, and global property.

Sygnia has introduced two new funds tracking local firms listed on the JSE. The Sygnia Itrix Top 40 ETF (SYGT40) tracks the FTSE/JSE TOP 40 Index, which consists of the largest 40 companies listed on the JSE, ranked by investable market cap. The largest sector exposures are to consumer services (32%) and financials (25%), while consumer goods (15%) and basic materials (13%) also play a significant role.

The second fund listed by Sygnia is the Sygnia Itrix SWIX 40 ETF (SYGSW4), which differs primarily in its weighting mechanism. The fund tracks the FTSE/JSE SWIX 40 Index, which consists of the largest 40 companies listed on the JSE, ranked and weighted by the market capitalisation of shares listed on the South African register (i.e. the total value of a company’s equity owned by South African-domiciled investors). In this way, the fund provides a more accurate representation of the broad market owned by South African investors.

The SWIX Index provides different sector weightings compared to the Top 40 Index, specifically offering more balanced exposure between the consumer services (24%), financials (22%), basic materials (22%) and consumer goods (20%) sectors.

Both funds have total expense ratios (TER) of 0.15%.

Building out its suite of international-focused offerings, the firm has also introduced the Sygnia Itrix S&P 500 ETF (SYG500) which tracks the bellwether S&P 500 Index. The fund, which is the first JSE-listed ETF to target the S&P 500, has a TER of 0.20%.

Sygnia has also listed its first ETF to provide exposure to the ‘alternatives’ asset class. The Sygnia Itrix Global Property ETF (SYGP) tracks the S&P Global Property 40 Index which provides exposure to 40 leading global property companies. Its TER is 0.25%.

The index is primarily exposed to real estate companies listed in the US at 54.9% of the index weight, with the next largest country exposures being Japan (13.7%), Hong Kong (12.1%) and Australia (6.5%). Retail REITs account for 23.4% of the index weight while the next largest sector exposures are to diversified real estate activities (18.8%), residential REITs (10.9%) and health care REITs (8.7%).

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