Exchange traded fund (ETF) provider Satrix has launched the first ETF on the JSE to include the full universe of large-, mid-and small-cap South African-listed companies. By tracking the FTSE/JSE All Share Index (Alsi), the Satrix Capped All Share Index (Capi) gives investors exposure to large multinational companies such as BHP Group, Richemont and the Naspers/Prosus stable, while providing broader exposure than indices such as the Top 40 Index.
Nico Katzke, head of portfolio solutions at Satrix Investments,says: “Our new Capped All Share ETF is ideal for investors seeking exposure to the JSE beyond the Top 40 listed shares. Investors looking for stability and outperformance, particularly relative to most active managers, should look closely at this ETF.”
He says each individual share in the portfolio is capped at 10% to limit too much exposure to any single share.
“The fund also includes high offshore exposure – via stocks like BHP, Richemont and Prosus, which provide investors with a good rand hedge, similar to the Top 40 index. The CAPI has delivered a more stable return profile due to improved diversification and capping limits, which means there is lower concentration risk and additional upside potential from mid-and small-cap counters. The result has been strong and consistent performance relative to other actively managed SA General Equity unit trust funds over time.”
The Satrix Capped All Share ETF can be accessed via Satrix’s investment platform, which has no minimum investment amount. It will also be available via other investment platforms and personal stockbroking accounts.
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