etfSA.co.za monthly South African ETF, ETN and index tracking product performance survey

The November Survey shows that despite the sluggish performance of the stockmarket and the economy over the past three years, a number of index tracking ETF products have provided total returns well above the inflation rate and given investors a simple means to grow their real wealth. Over the past three years, with the local CPI averaging less than 6% per annum, the returns provided by ETFs and most unit trusts tracking the JSE All Share or Top 40 indices, has averaged between 15% to 17% per annum.

The top “economic stagnation busters”, in the past 3 years, have been the Satrix DIVI, Satrix INDI 25 and Satrix RAFI 40 ETFs, which provide purely passive management exposure to the largest and most liquid companies on the JSE. Clearly the large corporates in South Africa are managing difficult conditions well and tracker funds that invest in these companies offer a relatively safe, low cost and convenient means for retail investors to protect and growth their wealth.

Over the short-term periods, the commodity based ETFs and ETNs continue to provide market beating performance, with the RMB Oil and Standard Bank Oil ETNs leading the way. These products offer a unique way to invest directly in crude oil, through rand denominated JSE listed securities and are starting to grow in popularity.