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|
|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|
|Performance||1 year +16.43%
3 year +14.97%
5 years +5.88%
10 years +3.66%
|What we like||The ETF methodology attempts to reduce risk and filter for quality companies. Familiarise yourself with the methodology before investing.|