New Satrix ETF that will upweight dual listed stocks

Simon BrownETF Blog, Latest

Satrix JSE Global Equity ETF

Satrix JSE Global Equity ETF

New Satrix ETF that will upweight dual listed stocks and will include the 50 largest stocks on the JSE using the global free-float metrics with a 10% cap.

Locally indices use the SA holding for weighting so a stock like Richemont is relatively small in the index as it has a small local holding relative to its entire market cap. By using global free float (number of shares globally available for trading) this would increase the weighting of dual listed stocks in the index.

The net effect is less SA Inc. exposure and more Rand hedge and offshore exposure to the likes of; BHP Group, Richemont, Glencore, Prosus, and Anheuser-Busch InBev.

As an example AngloGold Ashanti, BHP Group, Investec plc, Mondi plc and Richemont will be 28% in this ETF vs. 17%. Another example is AB InBev, British American Tobacco, Glencore, Prosus, Reinet and South32 will now be 27% vs. 10%.

Current weighting do tilt towards resource stocks and away from local banks.

  • Name: The Satrix JSE Global Equity ETF
  • Code: STXJGE
  • TER: 0.15%
  • Listing date: 12 March 2024

Simon Brown


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.



The looming commodity cliff
First quarter ETF winners and losers
The basic principles of capital gains tax
RSA Retail Savings Bonds rates (updated April 2024)