1nvest ETF5IT | Dalle 3
Before late last year, investing was all about US tech giants.
First it was the FAANG stock, then along came the Magnificent 7 but now it feels more like some B grade horror movie, as many of the big names are off their highs, in some cases well off their highs.
Locally, the JSE has four US tech focused ETFs. There are the two active ETFs from Sygnia, the FANG.AI and the 4th Industrial Revolution. And then there are the Satrix Nasdaq 100 and the 1nvest S&P500 Info Tech Index*, both pure passive ETFs.
My preferred, which I hold, is the 1nvest S&P500 Info Tech. It takes the tech stocks from within the S&P500 and puts those ±70 stocks into the index.
It also has a cap methodology of 35/20 which means the largest stock can be as much as 35% while the other are capped at 20%.
Top 10 holdings
The ETF is flat over the last year, but has still shown excellent returns and I continue to hold since shortly after the listing, even as some of my profits have faded away in the tech selloff.
Trump may be good or bad for tech, nobody knows. But what we do know is that tech will remain a dominant force in our lives, and these giants of tech are not going away.
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ETF name | 1nvest S&P500 Info Tech Index Feeder ETF |
JSE code | ETF5IT |
ETF issuer | 1nvest |
Issue date | 07 March 2018 |
Total investment cost | 0.36% |
ETF Benchmark | S&P 500 Capped 35/20 Information Technology Index |
Tax-free savings account | YES |
Market cap | R1.2billion |
Performance 1 year | +3.8% |
Performance 3 years | +80.8% |
Performance 5 years | +144.32% |
Dividend yield | Total return |
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.