Back in March 2023 Satrix concluded their purchase of most of the Absa ETFs and now they’re cleaning up some of what they purchased and this month it is the cash tracking Satrix TRACI 3 Month ETF.

The Satrix proposal is to merge this cash ETF into the Satrix Income AMETF in late November with holders of the TRACI having until mid October to vote.

The key details

The Satrix TRACI 3 Month ETF is 100% cash tracking the Barclays/Absa ZAR Tradable Cash Index 3 Month returning ±6.7% in the last year. Importantly it only holds cash.

The active Satrix Income AMETF has a better return (albeit on only eight months of history) targeting SA repo rate + 0.75% (7.75% at a current 7.00% repo) and holds some cash (about 29%) but mostly a collection of short-dated bonds and liquid interest-bearing assets.

Key is that the TER will go from 0.35% to 0.45%.

STXINC asset allocation, 31 July 2026: bonds 3–7yr 48.16%, cash and money market 19.00%, bonds 7–12yr 17.16%, other 10.16%, bonds 12yr+ 5.52%.

STXTRA distribution yield, 31 July 2026: 6.51%.

Apples vs Oranges

Satrix describes “slightly higher variability in returns” while remaining “within a conservative risk band”. Which is fair.

But a portfolio 71% invested in bonds of three years and longer has a very different risk profile to one holding 90-day NCDs. Money market instruments do not really lose capital; bonds do. If yields head higher, STXINC’s NAV falls. STXTRA’s essentially cannot as it is just cash.

SPIVA

The S&P Indices Versus Active data does show that one area where active managers actually do generally beat the benchmark is in fixed income. So there certainly is potential for higher returns, even after a 0.1% higher TER.

However, the point is probably that those holding a cash product are not looking to out preform anything. They’re looking for safety.

Sign up for our newsletter.

What investors MUST do

• If you are happy with the change: nothing. You will be counted as in favour.
• If you want to vote against: email the completed ballot form to KPMG at satrixballotSTXTRA@kpmg.co.za on or before 15 October 2026. Do not attach any other instruction — no switches, no purchases. The auditors will not action them.
  • If you have not received the ballot, contact info@satrix.co.za requesting one.
• If you want out regardless of the vote: sell STXTRA on market at any point before 26 November 2026. Expect CGT (taxable accounts) and brokerage.
• If you no longer hold STXTRA: no action.

My view?

I have never held the TRACI but have always liked it as a concept. However with assets of ±R250million it is not material and there are other options for investors in the unit trust space with money market funds, cash in the bank or RSA Retail Government Savings Bonds.

If it matters that you hold risk-free cash, then switch or vote no. If you’re just looking for low(ish) risk, then stay where you are.

Simon Brown

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.