What is Satrix 40?

2011-11-10 07:23

A Fin24 reader asks:

Could you please update me about the Satrix 40? I want to invest some money in it but I have no information or statistics about it.

Brett Landman, CEO of the Satrix Exchange-Traded Fund (ETF), responds:

Satrix, which is a type of unit trust that enables investors to buy shares in the largest 40 JSE-listed companies, started in 2000 with the launch of the Satrix 40 Exchange-Traded Fund (ETF) as the first ETF to be launched in South Africa.

The largest 40 companies by market capitalisation are diverse across all sectors and the Satrix 40 endeavours to replicate the performance of the FTSE/JSE Top 40 index.

Satrix has expanded its range of ETFs to seven, offering broad market exposure in the form of Satrix 40, Satrix Swix, Satrix Divi and Satrix Rafi.

In August 2004, Satrix registered with the Financial Services Board as a collective investment scheme. This means that all Satrix securities are treated like unit trusts in terms of taxation, compliance, investment exposure and reporting. 

The Satrix 40 ETF has a market capitalisation of R6.8bn. Over the past 10 years to September 30 2011, the Satrix 40 ETF has returned 16.01%.

A current highlight is the performance of the Satrix Divi ETF over the past three years. It has delivered a return of 18.03% per annum. It replicates the performance of the FTSE/JSE Dividend Plus Index, which includes stocks based on a one-year forecast dividend yield rather than traditional market capitalisation, as is the case with the Top 40 Index.

Satrix ETFs can be bought through your stockbroker/online trading account. If you do not have a stockbroker, you can buy your Satrix shares through the Satrix Investment Plan.

 - Fin24 

  • Paleface - 2011-11-10 08:18

    Oh so this is how we disguise advertising now.

  • Paul - 2011-11-14 20:03

    I have invested in Satrix since 2002 and have found the it to be of the best-kept South African investment secrets. Not only are the costs unbeatable but for medium-to-long term investors, Satrix-40 provides as close to a "guaranteed" above-inflation return as one could wish for. In 2006, started contributing towards the newly-established at-the-time Satrix-Divi for my new-born daughter and have therefore witnessed the success of this portfolio first-hand. I started a third portfolio for my second daughter in 2008 and all three of these were established without the use of any broker. Thank you Satirx and the JSE for creating such an accessible, rewarding and user-friendly investment instrument. Keep up the good work!!

      Alexander Ridley - 2011-11-15 12:57

      REMGRO has performed significantly better over the last 10 years

      Alexander Ridley - 2011-11-15 12:57

      REMGRO has performed significantly better over the last 10 years

      Alexander Ridley - 2011-11-15 12:57

      REMGRO has performed significantly better over the last 10 years

  • Dilawar - 2011-11-15 16:48

    An ETF is a far better option than a high cost equity fund that is essentially a clone of the Satrix 40. Far better still are those [few] standout fund managers whose excellent long-term records the Satrix 40 with its exposure to popular/expensive and cyclical stocks cannot way of example, for the last 10 years to 30/9/2011, Allan Gray's Equity Fund has achieved 24.2%.

  • Foodmanics - 2011-11-17 09:08

    I have graphed the difference between the satrix top 40 and another leading company who manage their own share portfolio's for private investors and you cannot compare!!! Volatility of satrix is super high! yes they have a small fee charge, but no knowledge, its all computer based and no fund managing skills are present. Just remember, that's what you paying for, the managers skills and expertise. I will be happy to pay away 2% to have my money managed and make up to 6% more, with far less volatility.

  • 100002932845739 - 2011-12-05 11:53

    Nice one. I am planning delving into this.

  • ike.jakson - 2012-09-06 02:58

    Forgive me guys but I have seen too many people loose money in monthly contributions to Satrix; it is a scam to catch the uninformed. IkeJ

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