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%.
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.
|ETF name||NewFunds Value Equity ETF|
|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|
|Performance 1 year||+37.2%|
|Performance 3 years||+21.3%|
|Performance since listing||+18.8%|
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