Satrix announced the listing of another new exchange-traded fund today – the Satrix MSCI ACWI Feeder ETF.
This comes after the company announced the launch of its Satrix Global Equity ETF (STXJGE) on 30 January, which is set to launch during the first quarter of 2024.
The Satrix MSCI ACWI Feeder ETF will also launch in the first quarter of 2024 upon approval from the JSE.
This ETF will track the performance of the MSCI All Country World Index (ACWI), which offers investors access to one of the most diversified global equity indices available and exposure to over 2,900 companies from developed and emerging markets.
The fund will have a total expense ratio of 0.35%.
Satrix CIO Kingsley Williams explained that, unlike the MSCI World Index, which only tracks developed markets, this ETF also includes emerging markets.
“The mandate of the ETF will be to track the value of the MSCI ACWI in ZAR, allowing long-term investors to conveniently diversify their portfolios by tracking the widely used benchmark for global equities with a single trade,” he said.
“In addition to broad developed market exposure, it includes exposure to large and potentially faster-growing countries like China and India.”
He said the fund offers exposure to 23 developed markets and 24 emerging markets, giving investors the opportunity to spread their currency risk across different countries, regions, and sectors.
The Satrix MSCI ACWI ETF will track an index that is a traditional market cap index used as a benchmark for global equity funds, providing a core building block for use within an investor’s overall portfolio.
This ETF combines other well-known major indices, namely the MSCI World Index and the MSCI Emerging Markets Index, which include the liquid and widely covered large- and mid-cap stocks within their respective countries.
“The Satrix MSCI ACWI ETF presents an efficient and low-cost tool that captures thousands of stocks across many jurisdictions, diversifying investors’ portfolios,” Williams said.
“The ETF has been designed for longevity and caters to investors with a long-term investment horizon who are not averse to short-term volatility.”
The Satrix MSCI ACWI ETF comprises 23 developed markets, making up 89% of the index and 24 emerging markets, making up the remaining 11%.
The index is diversified across sectors, holding:
- 22% Info Tech stocks
- 15% Financials
- 12% Health Care
- 9% Resources and Energy
- 58% Industrials
Just over 60% of the index is US exposure, followed by 12% in Europe excluding the UK, 11% in emerging markets and 14% in other developed markets.
Top companies in the index include Apple, Microsoft, Amazon, Meta, Alphabet and Tesla – market-leading giants in their respective industries.
“The Satrix MSCI ACWI ETF bridges the gap for South African investors, offering them a gateway to a world of investment opportunities,” Williams said.
“This ETF is more than just a financial instrument; it’s a tool for investors to diversify globally, manage risk, and efficiently gain exposure to both developed and emerging market equities.”