How long have you been investing?
I have been actively investing for over three decades – I can’t actually believe it has been so long. I still get the same thrill I did the very first time, when I understood the power of financial markets to change lives!
What was the first ETF you bought and why did you buy it?
ETFs were first launched in November 2000. I invested on that day in the first ETF launched, which was the Satrix Top40. I loved the fact that it tracks the 40 largest stocks on the JSE and that it pays out dividends on a quarterly basis. And of course, I like “firsts” and supporting market leaders.
How many ETFs do you currently hold?
I am invested in 4 ETFs, all through the EasyEquities platform. They are the Satrix Top40 (still!), Satrix MSCI World, Coreshares S&P500 and my latest investment in the Satrix Global Infrastructure fund. My kids all have TFSA on the EasyEquities platform and invest in the same ETFs as I do (or so they tell me – I suspect there are a few more!)
What’s your favourite local listed ETF, and why?
My favourite is my latest investment in the Satrix Global Infrastructure ETF, which launched in September 2021. The ETF has returned around 8% since inception, which during these market conditions is excellent. More than half the ETF is invested in utility companies (water, gas and water). A large portion is also invested in energy, which is and will also be an essential element in our lives. I love the fact that it gives me some overseas diversification, as many countries are required to spend on building infrastructure to rebuild their economies post the pandemic.
What’s your favourite offshore listed ETF, and why?
My favourite at the moment is the iShares Global Tech ETF (NYSE code: IXN). Being a lover of all things tech, this fund gives me access to global technology companies. Some of the top holdings include Apple, Microsoft, Nvidia, Samsung, Adobe, Sage, Zero to name a few. It also has a low total expense ratio of 0.40% pa.
Do you also hold individual shares?
Locally I am very heavily weighted in Purple Group (JSE code: PPE) – no surprise there. In my EasyEquities USD wallet, I think I will always have Amazon – a share which has served me well. Our Australian, UK and Euro wallets now offer more and more equities and ETFs in those regions, so I’m researching a few opportunities. I’m especially interested in Renergen and other mining shares in Australia.
What is the percentage split of your portfolio between ETFs and shares?
90% of my investment portfolio sits in one share, PPE. The balance is diversified in ETFs and the other shares mentioned above.
How can we find you?
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.