Time for a value ETF?

Simon Brown ETF Blog, Latest

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

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

Value ETF top 10 holdings


ETF name NewFunds Value Equity ETF
JSE code NFEVAL
ETF issuer Absa Capital
Issue date 26 March 2018
Total investment cost 0.51%
ETF Benchmark Absa Wits Risk-Controlled SA Value Index
Tax-free savings account Allowed
Market cap R296million
Performance 1 year +37.2%
Performance 3 years +21.3%
Performance since listing +18.8%
Dividend yield 4.1%


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.



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