Satrix Property ETF

ETF: Satrix Property ETF unpacked

In ETF Blog, Latest by Kristia van Heerden

Satrix Property ETFETF stalwarts Satrix introduced two new ETFs just in time for this year’s tax-free allocations. Index investors now have a brand new inflation-linked bond ETF and a property ETF to choose from. This week we’ll look under the hood of the property ETF to see how it compares to other property offerings.

The nuts and bolts



The Satrix Property ETF (STXPRO) tracks the S&P SA Composite Property Capped Index. While the index is weighted by market capitalisation, allocation is capped at 10% to prevent a single share from distorting the performance of the index.

The majority of JSE-listed companies currently represented in the index are diversified real estate investment trusts (REITs) like Redefine Properties. Retail and office REITs and real estate operating companies are also represented.

Nearly a quarter of this ETF is invested in companies listed on the JSE but operational in the United Kingdom, offering built-in rand hedge.

Real estate investments are typically favoured by investors who want to draw an income from their investments. Rental income from real estate investments are distributed as dividends. This ETF will distribute dividends in March, June, September and December. Keep in mind dividends are taxed at 20% outside of the tax-free environment.

Holdings

By the very nature of the product, the holdings of an ETF will change over time. For the time being, the following companies are represented in the STXPRO:

STXPRO_Constituents_March17

Source: satrix.co.za

Fees

The product’s total expense ratio is expected to be 0.35%, excluding VAT.

Property ETFs compared

ETF name Satrix Property CoreShares Proptrax SAPY CoreShares Proptrax TEN CoreShares S&P Global Property STANLIB SA Property
ETF JSE code STXPRO PTXSPY PTXTEN GLPROP STPROP
Issuer Satrix CoreShares CoreShares CoreShares Stanlib
Index tracked S&P SA Composite Property Capped Index FTSE/JSE SA Listed Property Index FTSE/JSE SA Listed Property Top 10 Equal Index S&P Global Property 40 index FTSE/JSE SA Listed Property Index
Methodology Weighted by market capitalisation, capped at 10% per share Weighted by market capitalisation Equally-weighted Weighted by market capitalisation Weighted by market capitalisation
Holdings View the full list here. View the full list here. View the full list here. View the full list here. Download the full list here.
TER 0.35% 0.58% 0.54% 0.5%** 0.27%

7 March 2017

** Headline service fee

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