ETF: Understanding the GIVI SA Top 50 ETF

Effective 1 March 2023 this ETF is now Satrix S&P GIVI South Africa Top 50 ETF (JSE code: STXT50)

Understanding the GIVI SA Top 50 ETF

Low volatility and value are at the core of the S&P GIVI SA Top 50 (GIVISA) ETF. The index filters companies based on their intrinsic value. To be included, companies need to have a market capitalisation of R10bn and trade at least R15m per day. Preference shares are excluded and each share is capped at 10%.

The value of a company’s assets, the company’s earning potential for the next five years and how stable the company is are all considered in the methodology of this ETF. As the name implies, the ETF invests in 50 South African companies that fall within the index’s stricter criteria.

It’s a design feature of ETF products to reflect changing market conditions over time. When we first featured this ETF in June 2016, it was heavily weighted in consumer goods. It had a huge holding in Steinhoff, a company since booted from most indices. It also had exposure to SAB Miller, a company that was acquired by an international firm (Anheuser-busch Inbev).

After tough years for South African shoppers, consumer goods are the largest holding in this ETF, followed by basic materials and financial companies. Sectors like telecommunications, healthcare and industrials aren’t well-represented in this ETF.

Unpacking the GIVISA

ETF name	Satrix S&P GIVI SA Top 50 ETF
JSE code	STXT50
ETF issuer	SATRIX
Issue date	24 June 2008 (then NewFunds GIVI SA Top 50)
Total expense ratio*	0.35%
ETF benchmark	S&P GIVI SA Top 50 Index
Tax-free savings account	Investment allowed
ETF major holdings	Prosus, Bhp Group, Anheuser-busch Inbev, Glencore, British Am. Tobacco, Naspers, Compagnie Fin Richemont, Firstrand, Standard Bank, Gold Fields See the full list here
Market cap**	R56m
Performance	1 year +16.43% 3 year +14.97% 5 years +5.88% 10 years +3.66%
Dividends**	3.2%
What we like	The ETF methodology attempts to reduce risk and filter for quality companies. Familiarise yourself with the methodology before investing.