Infographic: CoreShares Top50 weighting

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As an investor in South Africa the Top 40 has been a mainstay of our lives since forever. The First Exchange Traded Fund (ETF) to be issued was issued over the index (Satrix40 in November 2000) and we now have three other Top 40 ETFs on the index (STAN40 from Stanlib and the RMBT40 from RMB).

Then back in May CoreShares issued a Top50 ETF tracking, well the Top50 (code CTOP50). The index is designed by S&P and adds ten extra shares to the ETF. But there are some differences to the Top50 weightings and methodology. This ETF takes free float into account.  Capitec and Anglo Platinum (as two examples) are in the Top40 but not this new Core Top50 due to their majority shareholders (respectively PSG and Anglo American) reducing the free float. The Core Top50 also caps a stocks weighting at 10% of the index.

A comparison between the Top40 and Top50 weightings.

top50 weighting

And here is the interview Simon did with Gareth Stobie (head of CoreShares) on their new CoreTop50 ETF, it will be included in the JSEDirect podcast for 16 July 2015.

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