Accessible Satrix Top 40 is SA's preferred index-tracking ETF
The Satrix Top 40 this year again claimed the award as SA's favourite index-tracking exchange-traded fund (ETF) at the second annual South African Listed Tracker Awards (Salta) held at the JSE this week.
The fund is known for being easy to understand, easy to access and a good performer, making it the top choice of about 700 investors who voted on Salta's website over the past month and a half.
The poll was conducted by Refinitiv, one of the sponsors of the awards with ETF investment platform etfSA and data provider ProfileData.
The Satrix 40 fund invests in the top 40 biggest shares on the JSE, weighting them on their market capitalisation, or the value of the number of shares issued multiplied by the share price.
Getting access to the fund is easy on platforms such as Satrix Now, Easy Equities and etfSA, says etfSA MD Mike Brown.
The Satrix 40 ETF has delivered just less than 14% (13.9%) a year since it launched in December 2000 and Brown says many investors voted it their favourite because, they say, it has delivered good returns for them or their parents.
The Salta Awards recognise ETF performance over three and five years. At least four of the awards were claimed by riskier speciality ETFs that track the prices of commodities such as rhodium or palladium, or resources indices.
Investors looking for access to share markets should rather be looking at funds or ETFs that invest in a diverse range of shares, like the Satrix 40 and four other ETFs that track the top 40 index, or a more recently launched ETF that tracks the top 50 shares on the JSE.
The CoreShares Top50, which was awarded the Salta award for raising the most money over the past three years, tracks the S&P SA top 50, which includes the top 40 and 10 mid-cap shares on the JSE, but limits the weighting of any share to 10%.
Summary of ETF “SALTA” award winners..