ETF: Understanding the Satrix MSCI World ETF

Kristia van HeerdenETF Blog, Latest

Offshore investing has never been easier. South African investors can buy offshore index-trackers in rands via local stockbrokers. The product selection also increases every year. We can get exposure to euro, dollar, and pound-based investments at the click of a button. The Satrix MSCI World ETF is leading the charge in global exposure, with a highly diversified ETF investing in 23 countries and 1653 companies in the developed world.

The ETF’s nearly 63% exposure to the USA makes it appealing to investors interested in global household names like Apple, Microsoft and Amazon. However, its exposure in 22 regions outside of the US ensures that weightings in companies listed in other regions can compensate should American companies start to struggle to conduct business in the rest of the world. Property lovers would be glad to hear that 3.32% of the index is invested in global real estate.

While the investment is made rands, the ETF is denominated in US dollars, offering opportunities to capitalise on currency movements. In addition to 63.15% exposure to the dollar, the ETF also has 10.72% exposure to the Euro and 8.30% exposure to the Japanese Yen.

The greatest news is that the TER is only 0.35% per year, making it the cheapest ETF with worldwide exposure around.

ETF name Satrix MSCI World ETF
ETF issuer Satrix
Issue date 25 July 2017
TER* 0.35%
ETF benchmark MSCI World (Developed Market) Index
Tax-free savings account Investment allowed
ETF major holdings Apple, Microsoft, Amazon, Facebook, JP Morgan Chase&Co, Alphabet, Johnson & Johnson, Nestlé, Procter & Gamble. Download a full list here
Market cap* R2.3bn
Performance Since listing +33.7
1 year +14.6%
Dividends Total return
What we like Global exposure, compensating for local political instability and slow growth, dollar exposure and worldwide exposure, reducing regional risk.

*October 2019