List of South African Exchange-Traded Funds for Investment

South Africa offers a diverse range of exchange-traded funds (ETFs) for investors to choose from.

Some popular ETFs in South Africa include the Satrix MSCI World ETF, which tracks the performance of the MSCI World Index.

The Satrix Nasdaq 100 ETF tracks the Nasdaq 100 Index, providing exposure to the largest and most liquid stocks in the US.

The Absa World Equity ETF offers a cost-effective way to gain exposure to international equities.

Passively managed ETFs track a market index, such as the S&P 500 or the Johannesburg Stock Exchange All Share Index, and contain the same stocks as the index.

These funds have low expense ratios since they require relatively little oversight from fund managers.

Actively managed ETFs involve the fund manager making daily, weekly, monthly, or quarterly investing decisions.

The fund manager conducts research to determine what stocks to add and remove from the fund.

Actively managed funds typically follow an investment theme and have higher expense ratios.

Passively managed ETFs tend to change their holdings infrequently.

Actively managed ETFs have fund managers who set price targets for each holding.

If you're looking for the cheapest South Africa ETFs, you'll want to consider the total expense ratio (TER). The iShares MSCI South Africa UCITS ETF has a TER of 0.65% p.a., making it a great option.

If you're on a tight budget, this ETF might be worth considering.

In South Africa, there are several exchange-traded funds (ETFs) that cater to different investment goals and risk appetites.

The Satrix ETFs, for instance, offer a range of index-tracking ETFs that cover various asset classes, including equities, bonds, and property.

Some of the most popular Satrix ETFs include the Satrix Top 40 ETF, which tracks the performance of the Top 40 companies listed on the Johannesburg Stock Exchange (JSE).

The Satrix 40 ETF is a low-cost option that provides exposure to the South African equity market.

Investors can also consider the Satrix MSCI World ETF, which offers international diversification by tracking the performance of developed markets worldwide.

When comparing different options, it's essential to consider multiple factors to make an informed decision.

A thorough comparison involves evaluating various aspects such as price, features, and performance.

The price of a product or service can greatly impact its overall value.

For instance, a high-end smartphone may have advanced features, but its price may be out of budget for many users.

A product's features are also crucial in determining its suitability for a particular need.

The article section on "Key Features" highlights the importance of considering features such as camera quality, battery life, and storage capacity when choosing a smartphone.

In contrast, a product with limited features may be more affordable, but it may not meet the user's needs.

Ultimately, the best option is one that balances price and features to provide the best value for money.

The reviewed products have some notable differences. The first product, a budget-friendly option, has a 3-year warranty, while the high-end product has a 5-year warranty.

It's worth mentioning that the budget-friendly product has a slightly lower price point, making it a great option for those on a tight budget.

The high-end product, on the other hand, has a more advanced feature set, including a touchscreen display and a built-in GPS.

One thing to consider is that the budget-friendly product has a more compact design, making it easier to carry around.

In terms of performance, the high-end product has a slightly faster processor, which may be beneficial for heavy users.

Overall, the reviewed products offer a range of options to suit different needs and budgets.

To invest in ETFs, you'll need a reliable investment platform or ETF app. There are many options available, but not all offer a wide range of ETFs.

Some platforms charge expensive trading fees, which can eat into your returns. To avoid this, look for platforms with competitive fee structures.

In South Africa, you can buy shares of an ETF through a high-quality investment platform. This will give you access to a variety of ETFs and help you get started with investing.

Not all investment platforms offer the same range of ETFs, so it's essential to do your research and find one that suits your needs.

There's only one index available for ETFs on the South African stock market, which is the MSCI South Africa Capped index.

This index is tracked by a single ETF, the iShares MSCI South Africa UCITS ETF, which has a total expense ratio (TER) of around 0.65% p.a.

The MSCI South Africa Capped index focuses on large and mid-cap South African stocks, with a maximum weight of 33% for the largest constituent and 18% for all other constituents. This ETF has a fund size of 148 million EUR and is domiciled in Ireland, using a full replication method.

Here's a quick summary of the ETF's performance:

The ETF's use of profits is accumulating, and it's a good option for those looking to invest in the South African stock market.

If you're looking to invest in South Africa, but want to diversify your portfolio, you might consider alternative indices with a large share of the country.

One option is the MSCI Emerging and Frontier (EFM) Africa Top 50 Capped index, which tracks the 50 largest companies from emerging and frontier markets in Africa. This index has a significant share of South Africa, at 68.66% as of November 30, 2022.

The SGI Pan Africa index is another option, which tracks 30 large stocks listed in Africa or predominantly exploring African assets. This index has a smaller share of South Africa, at 34.83% as of November 30, 2022.

The total expense ratio (TER) of ETFs on Africa or emerging markets is between 0.65% p.a. and 0.85% p.a. This is a relatively low fee compared to other investment options.

Here are the two ETFs that track these indices:

These ETFs have a fund size of around 28-31 million EUR and use an accumulating strategy. They are both domiciled in Luxembourg and use an unfunded swap replication method.

The SPDR S&P Metals & Mining ETF, or XME, has a significant exposure to South Africa's mining industry, despite not being explicitly focused on South African companies.

This fund invests in stocks related to steel manufacturing in the US, gold mining in Africa, and mining for rare earth elements like lithium in China.

Its price shot up 64% last year, thanks to the skyrocketing demand for semiconductors and other precious metals.

The fund lost 5% over the prior 10 years, which is a disappointing long-term performance.

However, the demand for metals is likely to continue pushing up prices, driven by the need for electric cars, cryptocurrency mining, and renewable energy technology.

XME is expected to be one of the best ETFs for long-term growth, given the huge volumes of metals required by these emerging industries.

The ARK Innovation ETF, or ARKK, is a top performer to consider. It returned over 146% for investors in 2020. This exceptional performance is a testament to its ability to identify and invest in innovative companies.

The fund is actively managed by guru investor Cathie Wood, who seeks out young public companies with aggressive growth plans. The portfolio includes notable companies like Tesla and Square.

The fund's expense ratio is 0.75%, which is moderately pricey but reasonable given its performance. ARKK typically has between 35 and 55 holdings, but the number can vary from week to week.

Investors in ARKK can expect a diverse portfolio with a mix of well-known and lesser-known companies. The fund's focus on innovative companies in fields like genetics, AI, and renewable energy makes it an attractive option for those looking to invest in the future.

Managed Funds are a key consideration when choosing a specific fund.

Passively managed funds are designed to track a market index, such as the S&P 500 or the Johannesburg Stock Exchange All Share Index.

These funds typically contain the same stocks as the index and the holdings don’t change very frequently.

Passively managed funds tend to have low expense ratios since they require relatively little oversight from fund managers.

Actively managed funds, on the other hand, are portfolios where the fund manager makes investing decisions on a daily, weekly, monthly, or quarterly basis.

The fund manager conducts research to determine what stocks to add and remove from the fund, and sets price targets for each holding.

Actively managed funds typically follow an investment theme and have higher expense ratios.