Investing in ETFs has become increasingly popular in South Africa due to their low fees, diversification, and ease of trading. ETFs allow investors to gain exposure to a wide range of assets, including stocks, bonds, and commodities, with a single investment. With so many ETFs available, it can be difficult for investors to know which ones to choose. In this article, we will explore the 15 best ETFs in South Africa to invest your money.
One of the most popular ETFs in South Africa is the Satrix 40 ETF, which tracks the FTSE/JSE Top 40 Index. This index comprises the 40 largest companies listed on the Johannesburg Stock Exchange (JSE) and is a market capitalization-weighted index. The Satrix 40 ETF offers investors exposure to a diverse range of sectors, including financials, consumer goods, and mining.
Another popular ETF in South Africa is the iShares MSCI South Africa ETF (EZA), which provides exposure to the South African stock market. The EZA tracks the MSCI South Africa Index, which includes large and mid-cap South African stocks. The ETF is designed to provide investors with a simple and cost-effective way to invest in the South African market.
Understanding ETFs
Exchange Traded Funds (ETFs) are investment funds that trade on a stock exchange, similar to individual stocks. ETFs are designed to track the performance of a specific financial market index, such as the FTSE/JSE Top 40 Index.
ETFs are popular among investors because they offer several advantages over traditional mutual funds. These advantages include:
- Low fees:Â ETFs typically have lower management fees than mutual funds, which can result in higher returns for investors.
- Diversification:Â ETFs provide investors with exposure to a diverse range of assets, which can help reduce risk.
- Liquidity:Â ETFs can be bought and sold like stocks, which means investors can easily enter and exit positions.
- Transparency:Â ETFs disclose their holdings on a daily basis, which allows investors to see exactly what they are investing in.
ETFs are also flexible investment vehicles that can be used to achieve a variety of investment objectives. For example, investors can use ETFs to:
- Track a market index:Â Investors can use ETFs to track the performance of a specific market index, such as the S&P 500 or the FTSE/JSE Top 40 Index.
- Invest in a specific sector:Â ETFs are available that provide exposure to specific sectors, such as technology or healthcare.
- Invest in a specific region:Â ETFs are available that provide exposure to specific regions, such as Europe or Asia.
Overall, ETFs are a popular investment vehicle that offer investors a low-cost, diversified, and flexible way to invest in the financial markets.
Why Invest in ETFs in South Africa
Exchange-Traded Funds (ETFs) offer investors a simple and cost-effective way to gain exposure to a diversified portfolio of assets. ETFs are traded on stock exchanges, much like stocks, and track a specific index, commodity, or asset class. In South Africa, ETFs have gained significant popularity among investors in recent years, offering a range of benefits that make them attractive investment vehicles.
Diversification
One of the primary benefits of investing in ETFs is diversification. ETFs hold a variety of assets such as stocks, bonds, commodities, and currencies, which helps to spread the risk across different asset classes. This means that investors can benefit from the potential returns of different asset classes while reducing the risk of losses.
Low Cost
ETFs are generally considered to be a low-cost investment option compared to actively managed funds. The fees associated with ETFs are typically lower than those of mutual funds, which can eat into the returns over time. This is because ETFs are passively managed and do not require the same level of research and analysis as actively managed funds.
Transparency
Another benefit of investing in ETFs is transparency. ETFs are required to disclose their holdings on a daily basis, which makes it easy for investors to see exactly what they are investing in. This level of transparency can help investors make informed investment decisions.
Liquidity
ETFs are highly liquid, which means that investors can buy and sell them on an exchange at any time during trading hours. This makes it easy for investors to enter and exit their positions quickly, which can be important in volatile markets.
Flexibility
ETFs offer investors a high degree of flexibility. Investors can buy and sell ETFs in real-time, which means that they can adjust their portfolios quickly and easily. ETFs also offer exposure to a wide range of asset classes, which means that investors can tailor their portfolios to their specific investment objectives and risk tolerance.
In summary, ETFs offer investors a simple, cost-effective, and transparent way to gain exposure to a diversified portfolio of assets. They are a popular investment vehicle in South Africa, offering a range of benefits that make them attractive to both novice and experienced investors.
Top 15 ETFs in South Africa
Exchange-traded funds (ETFs) have become a popular investment option for South Africans in recent years. ETFs offer investors a low-cost, diversified way to invest in the stock market. Here are the top 15 ETFs in South Africa to consider for your investment portfolio:
- Satrix 40 ETF: Tracks the FTSE/JSE Top 40 Index, which comprises the 40 largest companies listed on the Johannesburg Stock Exchange (JSE).
- Sygnia Itrix MSCI World ETF: Invests in a diversified portfolio of global equities, tracking the MSCI World Index.
- Coreshares S&P 500 ETF: Invests in the top 500 companies listed on the US stock exchange, the S&P 500 Index.
- NewFunds Equity Momentum ETF: Invests in a diversified portfolio of South African equities with a focus on companies with strong momentum.
- Ashburton Top 40 ETF: Tracks the FTSE/JSE Top 40 Index, which comprises the 40 largest companies listed on the Johannesburg Stock Exchange (JSE).
- Satrix MSCI World ETF: Invests in a diversified portfolio of global equities, tracking the MSCI World Index.
- NewFunds Swix 40 ETF: Tracks the FTSE/JSE Swix 40 Index, which comprises the 40 largest companies listed on the Johannesburg Stock Exchange (JSE), weighted by their free float market capitalisation.
- Sygnia Itrix 4th Industrial Revolution ETF: Invests in a diversified portfolio of global equities with exposure to companies at the forefront of the fourth industrial revolution.
- 1nvest S&P 500 ETF: Invests in the top 500 companies listed on the US stock exchange, the S&P 500 Index.
- Satrix Nasdaq 100 ETF: Invests in the top 100 non-financial companies listed on the Nasdaq stock exchange.
- Coreshares Property ETF: Invests in a diversified portfolio of listed property companies listed on the Johannesburg Stock Exchange (JSE).
- Satrix Property ETF: Invests in a diversified portfolio of listed property companies listed on the Johannesburg Stock Exchange (JSE).
- NewFunds ILBI ETF: Invests in a diversified portfolio of South African government bonds with a maturity of more than one year.
- NewFunds GOVI ETF: Invests in a diversified portfolio of South African government bonds with a maturity of less than one year.
- Coreshares Preftrax ETF: Invests in a diversified portfolio of preference shares listed on the Johannesburg Stock Exchange (JSE).
Investors should carefully consider their investment objectives, risk tolerance, and investment horizon before investing in ETFs. It is also important to do thorough research and consult with a financial advisor before making any investment decisions.
Satrix 40 ETF
Satrix 40 ETF is a popular ETF in South Africa that tracks the FTSE/JSE Top 40 Index. The index comprises the 40 largest companies listed on the Johannesburg Stock Exchange (JSE), ranked by investable market cap. The ETF aims to accurately replicate the index by holding all constituents in the exact index weighting.
One of the advantages of investing in Satrix 40 ETF is the diversification it offers. By investing in this ETF, investors gain exposure to a wide range of sectors, including financials, consumer goods, and healthcare, among others. This diversification can help reduce risk and volatility in an investor’s portfolio.
Another advantage of Satrix 40 ETF is its low expense ratio. The ETF has a total expense ratio of 0.10%, making it one of the most cost-effective ETFs in South Africa. This low expense ratio means that investors can keep more of their investment returns.
Investors in Satrix 40 ETF also benefit from its liquidity. The ETF is highly liquid, meaning that investors can easily buy and sell shares on the JSE. This liquidity makes it a popular choice for both retail and institutional investors.
Overall, Satrix 40 ETF is a solid choice for investors looking to gain exposure to the South African stock market. With its low expense ratio, diversification, and liquidity, it offers investors an attractive investment option.
Ashburton Top 40 ETF
The Ashburton Top 40 ETF is one of the most popular exchange-traded funds (ETFs) in South Africa. It tracks the FTSE/JSE Top 40 Index, which is comprised of the 40 largest companies listed on the Johannesburg Stock Exchange (JSE) in terms of market capitalization.
Investing in the Ashburton Top 40 ETF offers investors exposure to a diversified portfolio of blue-chip companies across a range of sectors, including financials, mining, and retail. The fund’s top holdings include Naspers, BHP Billiton, and FirstRand.
One of the benefits of investing in the Ashburton Top 40 ETF is its low expense ratio, which is currently 0.16%. This makes it a cost-effective way for investors to gain exposure to the South African equity market.
Another advantage of the Ashburton Top 40 ETF is its liquidity. As one of the largest ETFs in South Africa, it has a high trading volume and tight bid-ask spreads, which means that investors can easily buy and sell shares at fair prices.
Overall, the Ashburton Top 40 ETF is a solid choice for investors looking for a low-cost, diversified investment in the South African equity market.
CoreShares Top 50 ETF is an exchange-traded fund that tracks the performance of the S&P South Africa 50 Index. The fund’s objective is to provide investors with exposure to the 50 largest companies listed on the Johannesburg Stock Exchange (JSE) by float-adjusted market capitalization.
The fund is passively managed, which means that it aims to replicate the performance of the index it tracks rather than trying to outperform it. This approach results in lower management fees compared to actively managed funds. The current management fee for the CoreShares Top 50 ETF is 0.20% per annum (excluding VAT).
As of June 30, 2023, the fund had 51 equity holdings, with 48.3% of its assets invested in the top 10 holdings. The fund had no bond holdings and four other holdings. The fund’s total assets under management (AUM) were R1,328,977,527, with 61,054,712 shares in issue. The current price/NAV of the fund is R21.77, and the last 12-month distributions were 69.96 CPU.
The CoreShares Top 50 ETF is a popular investment option for investors seeking exposure to large-cap South African companies. The fund’s underlying index, the S&P South Africa 50 Index, is a widely recognized benchmark for the South African equity market. The index includes companies from various sectors, including financials, consumer goods, and industrials.
Investors can buy and sell the CoreShares Top 50 ETF on the JSE during trading hours. The fund is also available through various stockbrokers and investment platforms in South Africa. Investors should carefully consider the fund’s investment objectives, risks, and fees before investing.
NewFunds GOVI ETF
NewFunds GOVI ETF is a bond ETF that tracks the performance of the South African government bond market. It is suitable for investors who want to invest in fixed income securities and earn a steady stream of income. The ETF invests in a diversified portfolio of South African government bonds, which have varying maturities and interest rates.
One of the benefits of investing in NewFunds GOVI ETF is that it provides investors with exposure to the South African bond market without having to buy individual bonds. The ETF is also highly liquid, which means that investors can easily buy and sell shares on the Johannesburg Stock Exchange.
NewFunds GOVI ETF has a low expense ratio of 0.25%, making it an affordable investment option for investors who want to keep their costs low. The ETF has also performed well in the past, with a 5-year return of 7.3%.
Investors should be aware that investing in bonds carries some risks, including interest rate risk and credit risk. Interest rate risk refers to the risk that the value of the bonds will decrease if interest rates rise. Credit risk refers to the risk that the issuer of the bonds will default on their payments.
Overall, NewFunds GOVI ETF is a good investment option for investors who want to invest in the South African bond market and earn a steady stream of income. It is a low-cost, highly liquid ETF that has performed well in the past. However, investors should be aware of the risks associated with investing in bonds and should carefully consider their investment objectives before investing in this ETF.
Satrix Divi Plus ETF
Satrix Divi Plus ETF is an index-tracking fund that is designed to track the value of the FTSE/JSE Dividend Plus index (J259) as closely as possible. It is a Collective Investment Scheme that is listed on the Johannesburg Stock Exchange as an Exchange Traded Fund.
The fund provides investors with the price performance of the FTSE/JSE Dividend Plus index (J259) as well as pays out, on a quarterly basis, all dividends received from companies comprising the index, net of cost. In order to reduce costs and minimize tracking error, Satrix Divi engages in scrip lending activities.
Satrix Divi Plus ETF is a popular choice among investors who are looking for a cost-effective way to gain exposure to high dividend-yielding stocks in South Africa. The fund is managed passively, which means that it aims to replicate the performance of the underlying index, rather than trying to outperform it.
Investors who are interested in investing in Satrix Divi Plus ETF should be aware that the fund has a relatively high concentration of holdings in the financials sector, which makes up more than 50% of the fund’s total assets. The fund’s other top sectors include consumer goods, basic materials, and healthcare.
Overall, Satrix Divi Plus ETF is a solid choice for investors who are looking for a low-cost way to gain exposure to high dividend-yielding stocks in South Africa. With its low expense ratio and quarterly dividend payouts, the fund is an attractive option for investors who are looking for a steady stream of income from their investments.
CoreShares Preftrax ETF is an Exchange Traded Fund (ETF) that tracks the performance of the Preference Share Index. This ETF is designed to provide investors with a cost-effective, transparent, and accessible way to invest in the South African preference share market.
The benefits of investing in CoreShares Preftrax ETF include an attractive yield, tax-efficient income for individual taxpayers, and quarterly distributions. This ETF is also a useful asset allocation tool for investors looking to diversify their portfolios.
CoreShares Preftrax ETF is listed on the Johannesburg Stock Exchange (JSE) and can be traded like a normal share. The ETF has an expense ratio of 0.38% and has a total net asset value of R1.5 billion as of September 2022.
Investors can use CoreShares Preftrax ETF to gain exposure to a diversified portfolio of South African preference shares, which can help to reduce risk and increase returns. The ETF holds a variety of preference shares from different industries, including financials, industrials, and utilities.
Overall, CoreShares Preftrax ETF is a great option for investors looking to gain exposure to the South African preference share market. With its attractive yield, tax-efficient income, and cost-effective structure, this ETF is a valuable addition to any investor’s portfolio.
| Fund Name | CoreShares Preftrax ETF |
|---|---|
| JSE Code | PREFTRX |
| Expense Ratio | 0.38% |
| Total Net Asset Value | R1.5 billion |
| Inception Date | 16 March 2012 |
| Dividend Yield | 7.8% (as of September 2022) |
Satrix Property ETF
Satrix Property ETF is a low-cost, passive investment vehicle that provides exposure to South Africa’s listed property companies/Real Estate Investment Trusts (REITs). It is one of only two ETFs in the local market that focuses on SA-listed REITs, as most other REIT ETFs focus on global listed property exposure.
The Satrix Property ETF tracks the performance of the FTSE/JSE SA Listed Property Index. The index is comprised of the top 20 liquid real estate companies listed on the Johannesburg Stock Exchange (JSE). The ETF provides investors with a diversified portfolio of South African property investments, with holdings in companies such as Growthpoint Properties Limited, Redefine Properties Limited, and Hyprop Investments Limited.
Investing in the Satrix Property ETF allows investors to benefit from the growth potential of the South African property market without the hassle of owning and managing physical property. The ETF offers investors a low-cost way to invest in the property market, with an expense ratio of just 0.25%.
The Satrix Property ETF is a popular choice for investors looking for exposure to the South African property market. It has a track record of delivering solid returns to investors, with a 5-year annualized return of 10.78% as of August 2023.
Overall, the Satrix Property ETF is a reliable investment option for investors looking to diversify their portfolio with exposure to the South African property market.
NewFunds ILBI ETF
NewFunds ILBI ETF is an exchange-traded fund that provides investors with exposure to inflation-linked bonds issued by the South African government. The ETF aims to track the performance of the Barclays/Absa South African government inflation-linked bond index (ILBI).
This ETF is suitable for investors who are looking for a low-cost way to invest in inflation-linked bonds. It is also a good option for investors who want to diversify their bond portfolio and reduce their exposure to interest rate risk.
NewFunds ILBI ETF has a total expense ratio (TER) of 0.25%, which makes it one of the most affordable bond ETFs available in South Africa. The ETF has a dividend yield of around 3%, which is higher than the average yield of other bond ETFs.
The ETF has a maturity profile of more than 12 years, which means that it is more sensitive to interest rate changes than shorter-term bond ETFs. However, this also means that it provides investors with higher potential returns.
Investors should note that inflation-linked bonds are not immune to interest rate risk and credit risk. Inflation-linked bonds are also subject to the risk of inflation, which can erode the real value of the investor’s capital.
Overall, NewFunds ILBI ETF is a good option for investors who are looking for a low-cost way to invest in inflation-linked bonds issued by the South African government. Investors should carefully consider their investment objectives, risk tolerance, and investment horizon before investing in this ETF.
Satrix Quality South Africa ETF
Satrix Quality South Africa ETF is an index tracking fund that is listed on the Johannesburg Stock Exchange as an Exchange Traded Fund. The mandate of the fund is to track, as closely as possible, the value of the S&P Quality South Africa Index.
The S&P Quality South Africa Index is designed to include high-quality JSE listed stocks that are selected using a quality score. This quality score is calculated based on a company’s return on equity, accruals ratio, and financial leverage ratio.
Investors who are looking for a passive investment strategy may find the Satrix Quality South Africa ETF to be a suitable option. The fund provides exposure to a diversified portfolio of high-quality stocks, which can help to reduce the risks associated with investing in individual stocks.
As of September 6, 2023, the fund’s JSE code is STXQUA. The fund has a total expense ratio of 0.25%, which is relatively low compared to other ETFs in South Africa.
Investors who are interested in investing in the Satrix Quality South Africa ETF can do so through a broker or an investment platform that offers access to the Johannesburg Stock Exchange.
| Fund Name | Satrix Quality South Africa ETF |
|---|---|
| JSE Code | STXQUA |
| Fund Type | Index Tracking |
| Fund Manager | Satrix Managers (Pty) Ltd |
| Total Expense Ratio | 0.25% |
| Inception Date | 23 October 2013 |
| Index Tracked | S&P Quality South Africa Index |
Overall, the Satrix Quality South Africa ETF is a low-cost, passive investment option that provides exposure to a diversified portfolio of high-quality stocks. Investors who are looking for a simple and effective way to invest in the South African stock market may find this fund to be a suitable option.
1nvest Gold ETF
The 1nvest Gold ETF is an Exchange Traded Fund that provides investors with a simple and cost-efficient way to access the precious metal market. The ETF is designed to offer unit holders a secured and easy way to invest in gold. The ETF provides a return equivalent to the movements in the Rand gold price less the management fee.
The 1nvest Gold ETF is managed by experienced fund managers at 1nvest, a specialist index fund manager in South Africa. The ETF is listed on the Johannesburg Stock Exchange (JSE) and can be bought and sold like any other listed security. The ETF has a JSE Share Code of ETFGLD and an NSX Share Code of ENXGLD.
The ETF’s benchmark is the Rand price of gold and it invests in physical gold bullion. The ETF provides investors with a way to invest in gold without the hassle of storing and insuring the physical metal. The ETF is also a cost-efficient way to invest in gold as the management fee is only 25 basis points per annum (Ex VAT).
Investors should note that the 1nvest Gold ETF is not a fixed income investment and should not be viewed as a substitute for cash or cash equivalents. The ETF is also not a guaranteed investment and the value of the ETF may fluctuate.
Overall, the 1nvest Gold ETF is a good option for investors who want to invest in gold without the hassle of storing and insuring the physical metal. The ETF is also a cost-efficient way to invest in gold with a low management fee.
Sygnia Itrix MSCI World ETF
Sygnia Itrix MSCI World ETF is a popular ETF in South Africa that tracks the MSCI World Index. This index is designed to measure the equity performance of developed markets globally and represents companies with a total market capitalization of approximately US$30 trillion.
This ETF has a high risk profile, making it suitable for investors who are willing to take on greater risk in exchange for potentially higher returns. It is an excellent option for those looking to invest in global equities as it provides exposure to a diverse range of companies in various sectors and geographies.
The Sygnia Itrix MSCI World ETF is listed on the Johannesburg Stock Exchange (JSE) and is one of the most traded ETFs in South Africa. It has a low total expense ratio (TER) of 0.60%, making it an affordable option for investors.
Investors can buy and sell shares in the Sygnia Itrix MSCI World ETF through a stockbroker or online trading platform. The ETF is also available through various investment platforms in South Africa.
Overall, the Sygnia Itrix MSCI World ETF is a solid option for investors looking to diversify their portfolio with exposure to global equities. It is a well-managed ETF with a low TER and provides investors with access to a broad range of companies in developed markets worldwide.
How to Invest in ETFs
Investing in ETFs in South Africa is relatively easy and straightforward. Here are a few steps to follow:
- Open a brokerage account: The first step to investing in ETFs is to open a brokerage account. There are several brokerage firms in South Africa, and investors can choose the one that suits their needs. Some of the popular brokerages include EasyEquities, Standard Bank Online Share Trading, and Absa Stockbrokers.
- Choose an ETF: Once the brokerage account is set up, investors can choose an ETF to invest in. There are several ETFs available in South Africa, and investors can choose from a range of options, including equity ETFs, bond ETFs, and commodity ETFs. Some of the popular ETFs in South Africa include the iShares MSCI South Africa ETF, Satrix 40 ETF, and Sygnia Itrix MSCI World ETF.
- Determine the investment amount: Investors need to determine how much money they want to invest in the ETF. The investment amount can vary depending on the investor’s financial goals, risk appetite, and investment horizon.
- Place the order: Once the ETF is chosen, and the investment amount is determined, investors can place the order through their brokerage account. The order can be placed online or over the phone.
- Monitor the investment: After investing in the ETF, investors need to monitor their investment regularly. They can track the performance of the ETF through their brokerage account or by using financial websites and apps.
Investing in ETFs can be an excellent way for investors to diversify their portfolio and gain exposure to a range of assets. However, investors should do their research and understand the risks associated with investing in ETFs before making any investment decisions.
Risks of Investing in ETFs
Investing in ETFs comes with a certain level of risk. While ETFs are generally considered to be a more low-risk investment option than individual stocks, it is important to be aware of the potential risks involved before investing your money.
Market Risk
One of the biggest risks of investing in ETFs is market risk. This refers to the risk that the entire market will decline, causing the value of your ETF to decrease. Even if the individual companies held within the ETF are performing well, a broader market downturn can still impact the ETF’s value.
Liquidity Risk
Another potential risk of investing in ETFs is liquidity risk. This refers to the risk that you may not be able to sell your shares in the ETF when you want to. While ETFs are generally considered to be a highly liquid investment option, there are some circumstances where liquidity can be an issue. For example, if there is a sudden rush of investors looking to sell their shares in the ETF, it may be difficult to find a buyer for your shares.
Tracking Error Risk
ETFs are designed to track a specific index or benchmark. However, there is always the risk that the ETF will not track the index as closely as it should. This is known as tracking error risk. While tracking error is generally considered to be a relatively small risk, it can still impact the overall performance of your investment.
Management Risk
Finally, there is also the risk that the management of the ETF may not perform as well as expected. This could be due to a variety of factors, such as poor investment decisions or changes in market conditions. While you cannot control the actions of the management team, it is important to choose an ETF with a reputable management team and track record.
Overall, while investing in ETFs can be a great way to diversify your portfolio and potentially reduce risk, it is important to be aware of the potential risks involved. By understanding these risks and choosing your investments carefully, you can make informed decisions that will help you achieve your financial goals.
Final Thoughts
In this article, we have discussed the 15 best ETFs in South Africa to invest your money. Each ETF has its own unique characteristics, which make them suitable for different types of investors with varying investment objectives and risk appetites.
Investors looking for a broad exposure to the South African equities market may consider the iShares MSCI South Africa ETF (EZA) or the Satrix 40 ETF, which tracks the FTSE/JSE Top 40 Index. On the other hand, those looking for a more focused approach may consider the Sygnia Itrix MSCI World ETF or the NewFunds eRAFI® SA Dividend Plus ETF.
For investors interested in gaining exposure to specific sectors, there are ETFs such as the Absa NewFunds MAPPS Growth ETF, which invests in a combination of equities, bonds, and listed property, or the Satrix FINI ETF, which tracks the FTSE/JSE Financial 15 Index.
Investors looking for exposure to emerging markets may consider the Ashburton Global 1200 Equity ETF, which invests in companies from developed and emerging markets, or the STANLIB Global Emerging Markets ETF, which invests in companies from emerging markets.
Finally, for investors looking for income-generating investments, there are ETFs such as the Absa NewFunds Equity Momentum ETF, which invests in companies with high earnings momentum, or the CoreShares S&P Global Dividend Aristocrats ETF, which invests in companies with a track record of consistently paying dividends.
Overall, there are many options available for investors looking to invest in South African ETFs. It is important to do your due diligence and understand the risks and rewards of each ETF before making any investment decisions.
Frequently Asked Questions
What are the top-performing ETFs in South Africa?
The top-performing ETFs in South Africa include the iShares MSCI South Africa ETF, the Satrix 40 ETF, and the Sygnia Itrix MSCI World ETF. These ETFs have consistently delivered good returns to investors.
Which ETFs have the highest returns?
The iShares MSCI South Africa ETF has one of the highest returns among ETFs in South Africa. It has a 1-year performance of +10.99% and an annual dividend yield of 4.73%. Other ETFs with high returns include the Satrix 40 ETF and the Sygnia Itrix MSCI World ETF.
What are the best ETF options for investing in South Africa?
The best ETF options for investing in South Africa include the iShares MSCI South Africa ETF, the Satrix 40 ETF, and the Sygnia Itrix MSCI World ETF. These ETFs provide exposure to different segments of the South African market, including large-cap and mid-cap companies.
What are the fees associated with investing in ETFs?
ETFs typically have lower fees compared to other investment options such as mutual funds. The fees associated with investing in ETFs include the expense ratio, which is the annual fee charged by the fund to cover its operating expenses. The expense ratio for ETFs in South Africa ranges from 0.10% to 0.75%.
How do ETF prices compare to other investment options?
ETFs are generally more cost-effective than other investment options such as mutual funds. ETFs are traded on an exchange like stocks, which means that investors can buy and sell them throughout the day. This makes ETFs more liquid and transparent compared to mutual funds.
What are the risks associated with investing in ETFs?
Like any investment, ETFs come with risks. One risk associated with investing in ETFs is market risk, which is the risk of loss due to changes in market conditions. Another risk is tracking error, which is the difference between the performance of the ETF and its underlying index. It is important to understand these risks and to diversify your investments to minimize them.
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