After hitting new all-time highs back in January 2018 the FTSE-100 index has struggled largely going sideways, aside from the covid-19 sell off.
The chart below shows that we’ve had a good break higher with a retest of the support at a little over 8,000 possible, this looks like a strong breakout. Technically the longer resistance holds, in this case back to 2018, the higher the move after the breakout.
Importantly this is not about Brexit being a success or the UK economy being super robust. Fully 75% of earnings from the 100 stocks making up this index come from beyond the boarders of the UK as we can see from the sector percentages listed below.
FTSE 100 sector weighting March 2024
Locally on the JSE we have the Sygnia Itrix ETF tracking the UK detailed below. One caution is that any Rand strength against the British Pound will take some shine off the return of the local ETF, equally weakness will add to the return.
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| ETF name | Sygnia Itrix FTSE 100 |
| JSE code | SYGUK |
| ETF issuer | Sygnia Itrix |
| Issue date | 10 October 2005 |
| Total investment cost | 0.89% |
| ETF Benchmark | FTSE 100 index |
| Tax-free savings account | Yes, allowed |
| ETF major holdings | Shell, Astrazeneca, HSBC, Unilever, BP, GlaxoSmithKline, Relx, Diago, Rio Tinto & Glencore |
| Market cap | R1.125billion |
| Performance 1 year | +3.9% |
| Performance 3 years | +37.5% |
| Performance 5 years | +46.1% |
| Dividend yield | 3.6% |
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.
