This ETF listed back in November 2021 and I have to admit I missed perhaps the key feature of this ETF. It pays dividends every two months (February, April, June, August, October and December).

This is likely because with over 100 local stocks it is consistently receiving dividends and hence pays them out. As the table below shows two large payments and the other four being smaller over the last year.

It also down weights the larger stocks such as Naspers and being over 100 holdings, includes the mid-cap sector as well. Top ten holdings as below.

STXCAP Top 10 Holdings

It is of course locally listed stocks, but as always many of those local stocks earn their income offshore and the two largest sectors are financials at almost 30% and basic materials at just over 23%.

STXCAP Sectors

I like this ETF, I like it very much and could be considered as a replacement for a Top40 ETF*. It has slightly under performed since listing (by ±0.6% per year), but if regular dividend flow matters then this is a winner.

STXCAP vs. STX40

Simon Brown

* I hold ungeared positions.

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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.