So we’re long-term investors. Yes many of us gaze at screens all day checking prices while others check in every few days or weeks.
But as long-term investors I thought it would be interesting to check compound annual growth rate (CAGR) including dividends (total return) on the locally listed ETFs over the last five years.
Now sure not all ETFs have been listed that long, in fact I first ran the numbers over the last decade, but ultimately very few ETFs have that length of record.
Winners
The winners list is dominated by tech and offshore. The Rhodium ETF (JSE code: ETFRHO) still comes in at #3 even after losing over half its value so far this year.
The gold ETFs surprised me, but of course helped by Rand weakness and a serious run in the metal.
And look right down at the bottom, the Top40 ETFs doing almost 12% a year, bet nobody expected that.
JSE ETF five-year CAGR total return to close 17 October 2023
Losers
On the losers side, only 3 were red over the period, and all were listed property which makes sense as that index peaked in late 2017. The dividends here have helped a ton as REITs continued to pay chunky dividends with some exception during the pandemic.
JSE ETF five-year CAGR total return to close 17 October 2023
ETF blog
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.