The NewFunds Value Equity ETF (NFEVAL) is now Satrix Value Equity ETF (STXVEQ)(March 1 2023)
As markets continue to be volatile and mostly red one of the themes emerging is a shift from growth stocks to value stocks.
The data from the US (chart below) certainly shows this happening after years of value being in the doldrums and year-to-date value in the US has out preformed growth by some 10%.
Growth vs. Value
This theme was also present in annual forward looking reviews for major global investment houses which I discussed with Schalk Louw from PSG Old Oak, the interview is below.
Locally on the JSE, we have one value ETF issued by Absa – the NewFunds Value Equity ETF (JSE code: NFEVAL) which tracks a bespoke Absa Wits Risk-Controlled SA Value Index. This ETF holds 30 JSE listed stocks that exhibit value characteristics such as low price-to-earnings and price-to-book ratios. The ETF is also a good dividend payer with a current dividend yield of over 4%.
Of note is that Satrix will be taking over this ETF later in the year.
At the end of December 2021, the top sectors are financials (37.9%), basic materials (29.4%), consumer goods (12.3%) and health (8.5%).
The top ten holdings at the end of December 2021 are as below.
Value ETF top 10 holdings
| ETF name | SATRIX Value Equity ETF |
| JSE code | STXVEQ |
| ETF issuer | Satrix |
| Issue date | 26 March 2018 |
| Total expense ratio |
0.51% |
| ETF Benchmark | Absa Wits Risk-Controlled SA Value Index |
| Tax-free savings account | Allowed |
| Market cap | R289million |
| Performance 1 year | -1.51% |
| Performance 3 years | +22.46% |
| Performance since listing | +4.42% |
| Dividend yield | Total return (6.02%) |
May 2023
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