Satrix - News Article (2024)

Satrix offers both Exchange Traded Funds (ETFs) and Unit Trusts – here are some important considerations when deciding which one is right for you.


Index investing is no longer just about tracking a popular market cap weighted index in order to realise inflation beating returns. The decision as to which index to track really is an important and active choice. In addition to traditional market cap weighted indices, any factor weighted index can also be tracked to realise a myriad of performance drivers in any market. Within each index segment, “traditional vanilla” or “smart beta”, lie a wide range of index choices, both locally and globally.


Once you’ve made the index choice, you need to choose an index-tracking product which can deliver the performance of that index. Just as the list of available indices has expanded, so have the index tracking product options.

Which vehicle is right for you - ETF or UT? Here are some considerations:

Satrix - News Article (1)


In the case of both Unit Trusts and ETFs the investor essentially owns a proportionate share of the total underlying investments held by the fund. Both offer investors access to the performance of an underlying pool of assets via a single transaction. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the investor holds a security or share listed and traded on a stock exchange. When an ETF and UT track the same index (take the FTSE/JSE Top 40 as example), there is no difference in the underlying portfolio. Both will fully replicate the index by holding all the Top 40 constituents in exactly the same weights as the index. Both vehicles are governed by the Collective Investments Scheme Control Act (CISCA), are monitored by independent trustees and are highly regulated by the Financial Sector Conduct Authority (FSCA).

Both are transparent. Both are liquid.

Index-tracking investments, whether via an ETF or UT, are low cost investment options.


The ETF, as the name implies, is listed and traded on the stock exchange like any other company share. It is therefore subject to the JSE listing requirements. An ETF is priced continuously throughout the trading day, while the UT is priced once a day and traded via the Unit Trust Management Company (Manco). If you are a long term investor this pricing frequency should not matter to you. When investing in an ETF or UT on our online platform you will notice that the processes differ - for example the continuous pricing of the ETF means you will receive immediate trade confirmation via e-mail, whereas the UT trade confirmation can be expected the next trading day and is dependent on cut-off times.

The ETF, by virtue of its listing, is subject to the JSE settlement cycle for equities, which is currently 3 trading days. When selling an ETF investment your proceeds will therefore be received a few days later than when selling a UT. Note this is no reflection on the liquidityof the ETF investment.


Index-tracking funds are very transparent - you know exactly what you are invested in. An ETF must publish its holdings daily. The UT does not have this requirement as unit trust regulation only specifies a quarterly reveal of holdings. This does not mean the transparency of the UT is in question. As unit trusts have traditionally been actively managed funds, the quarterly publication of holdings is reasonable as an active manager would naturally not want to reveal their positions daily. As mentioned, the UT reflects the index and since index data is continuously available, effectively so is the UT data.


The MDD (Minimum Disclosure Document) of any ETF or UT will show the management fee and TER (Total Expense Ratio). In addition, access costs will make a difference to the total cost of your investment. To make an informed decision on costs, review the cost of any platform, LISP, online trading facility or stockbroking account and add this to the product cost. In addition, if a financial adviser is used, the cost of this advice must also be considered. Our SatrixNOW platform offers both ETFs and UTs with no minimum investment amount. Remember that since the ETF is a listed security, a brokerage cost will be incurred when trading the ETF, but this is not applicable to the UT.

All providers are required to make an EAC (Effective Annual Cost) calculation available for their products. Use this calculator to help you make decisions on both products and the platforms where you can access them.


The index-tracking product you require may not be available in both ETF and UT format. For example Satrix currently offers sector trackers (Resi 10, Fini 15, Indi 25) in ETF format only. Satrix Alsi40, Dividend Plus and Rafi 40 are available in both ETF and UT format, while Money Market and Balanced tracker funds are available as Satrix UTs. Globally we offer 3 ETFs (MSCI World, MSCI Emerging Markets and S&P500) and 1 Unit Trust (MSCI World). Visit Satrix products for details. TheSatrix Access Rangefeatures our flagship ETFs and UTs, simply and at low cost via our online platform


The performance of an ETF and UT tracking the same index and charging the same fee should be similar. Some differences may occur mainly due to cash flows and fund size. UT cash flows take place in the fund, causing additional trading & custodian costs which can affect performance.

Cash flows within the ETF are managed by the buying and selling of ETF securities in the secondary market, so here an additional bid-offer spread must be considered.


Whether you choose an ETF or UT as your index tracking investment vehicle should depend on the reasons outlined above. Your individual circ*mstance will dictate the best route for your investment needs and the choice may simply be a matter of personal preference. Either way, you will realise your goal of achieving returns as close as possible to that of your chosen index.

Satrix - News Article (2024)


Is Satrix a good investment? ›

Satrix CAPI tracks all 140 stocks listed on the JSE. It gives investors access to the full spectrum of small-, mid- and large-cap stocks. Investors like it because it offers broader market exposure and more stable returns than other equity funds.

Which Satrix fund is the best? ›

  • People's Choice. Favourite ETF by public vote: Satrix 40 ETF.
  • Best Trading Efficiency. Overall: Satrix RESI 10 ETF.
  • Best Total Return Performance. SA Equity 1 Year: Satrix FINI ETF.

Is Satrix Divi Plus a good investment? ›

Portfolio Performance and Changes

In the first quarter of 2024, the FTSE/JSE Dividend+ Index (Divi Plus) realised a negative return of 9.48%, underperforming both the FTSE/JSE Top 40 Index and the FTSE/JSE ALSI Index, which posted negative returns of 2.27% and 2.25%, respectively.

How often does Satrix pay dividends? ›

Public companies usually pay dividends on a fixed schedule (generally issued half-yearly for cash dividends), but may occasionally decide to pay a one-off special dividend at any time. Satrix ETFs have quarterly dividend distributions.

How safe is Satrix? ›

Satrix will never do anything to compromise your information or your safety online. Below are some points to keep in mind and ensure you really are dealing with us! Satrix will never request your username or password from you. Satrix does not have representatives or salespeople that reach out to solicit 'investments'.

Who owns Satrix? ›

Satrix is wholly owned by Sanlam, which provides us with operational scale, sustainable investment in information technology, trading networks, stability and governance excellence.

Which ETF has the best 10-year return? ›

1. VanEck Semiconductor ETF
  • 10-year return: 24.37%
  • Assets under management: $10.9B.
  • Expense ratio: 0.35%
  • As of date: November 30, 2023.

What are the top 5 ETFs to buy? ›

7 Best ETFs to Buy Now
ETFExpense RatioYear-to-date Performance
Global X Copper Miners ETF (COPX)0.65%26.2%
YieldMax NVDA Option Income Strategy ETF (NVDY)1.01%12.9%
iShares Semiconductor ETF (SOXX)0.35%14.9%
Simplify Interest Rate Hedge ETF (PFIX)0.50%22.9%
3 more rows
May 7, 2024

What is the highest paying ETF? ›

Top 100 Highest Dividend Yield ETFs
SymbolNameDividend Yield
TSLGraniteShares 1.25x Long Tesla Daily ETF97.61%
NVDQT-Rex 2X Inverse NVIDIA Daily Target ETF88.02%
CONYYieldMax COIN Option Income Strategy ETF62.48%
KLIPKraneShares China Internet and Covered Call Strategy ETF57.72%
93 more rows

What is the highest paying dividend fund? ›

7 Best High-Dividend ETFs to Buy Right Now
High-Dividend ETFAssets Under ManagementTrailing Dividend Yield*
VanEck BDC Income ETF (BIZD)$1.1 billion10.7%
Invesco Senior Loan ETF (BKLN)$7.2 billion8.8%
SPDR Blackstone High Income ETF (HYBL)$153 million8.1%
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)$6.7 billion4.6%
3 more rows
5 days ago

What are the highest paying dividend stocks in South Africa? ›

South African companies with the highest dividend yields
SymbolDiv yield % (indicated)Market cap
MRF33.07%3.174 B ZAR
TMT15.24%462.347 M ZAR
TGA14.87%18.896 B ZAR
CMH12.93%2.117 B ZAR
32 more rows

What investment pays highest dividends? ›

20 high-dividend stocks
CompanyDividend Yield
Franklin BSP Realty Trust Inc. (FBRT)11.50%
Angel Oak Mortgage REIT Inc (AOMR)10.71%
International Seaways Inc (INSW)10.66%
CVR Energy Inc (CVI)9.35%
17 more rows
6 days ago

What is top 40 ETF? ›

The Top40 is an equity Index of the 40 largest companies by market capitalisation, listed on the JSE. The fund is rebalanced quarterly and therefore has minimal trading costs. The fund may also hold a small portion in cash instruments and listed derivatives to effect efficient portfolio management.

Is Satrix Nasdaq 100 a good investment? ›

This ETF has returned 0.81% over the last year and 22.8% since inception. It has significant portfolio size of R3bn, which implies that it can withstand market volatility. It has a steep total expense ratio of 0.48% and is the only JSE-listed fund that tracks the Nasdaq 100.

What is Satrix Top 40? ›

The Satrix 40 ETF tracks the performance of the FTSE/JSE Top 40 index which includes the 40 largest companies on the JSE, ranked by investable market cap. The ETF aims to accurately replicate the index by holding all constituents in the exact index weighting. Distributions are made quarterly.

What's the best investment in South Africa? ›

Best Investment Options with Highest ROI in South Africa for 2024
  • Stocks - Best for portfolio control. ...
  • Robo-advisors - Best for hands-off investment. ...
  • Index funds - Best conservative approaches. ...
  • Cryptocurrencies - Best high risk high reward approach. ...
  • Government bonds – Low risk retirement planning.
Dec 31, 2023

What is the best performing ETF in South Africa? ›

Top performing ETFs
JSE CodeFund Name1 Year
STX500Satrix S&P 50021.24
SYG500Sygnia Itrix S&P 500 ETF21.17
CSP50010X S&P 500 ETF21.16
Find my ETF
7 more rows

Can you withdraw money from Satrix? ›

Yes, you can take funds out of your SatrixNOW account at any time, provided the funds are not tied up in holding an ETF. If the funds are available (ie. indicated as "Withdrawable Funds" on the platform) the withdrawal process takes approximately 2-3 business days depending on the financial institution you bank with.

What is the minimum deposit for Satrix? ›

SatrixNOW allows you to access investing online and you can invest any amount you choose because we have no minimums. Set up a debit order or deposit a lump sum.


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