February 2014 – etfsa.co.za monthly South African ETF, ETN and unit trust index tracking performance survey

The Satrix INDI 25 ETF continues to remain the best performing tracker fund for the 5 year period, with an annual return of 33,17%, comfortably outperforming the FTSE/JSE All Share total return of 24,10% per annum. The Industrial index, which avoids mining and financial shares, has low volatility and encompasses all South Africa’s major industrial companies, which are currently favoured by global investors.

For the short-term periods of 6 months to 3 years, the DBX Tracker ETF products, giving exposure to global equity markets, dominate the performance tables. The DBX Tracker ETPs have a very low tracking error, the costs are being reduced over time to very competitive levels compared with equivalent products provided by unit trusts and the "inward investment” status of such products, means that they are traded in rands and do not impact on the foreign exchange control allowances of most investors.

In the very short-term period of up to 3 months, commodity tracking indices, such as oil, silver and platinum have leapt to the top. This might signify that the general recovery in the world economy is filtering through to commodity markets.

The etfSA.co.za Performance Survey measures the total return (Net Asset Value (NAV to NAV)) changes including reinvestment of dividends) for index tracking unit trusts and Exchange Traded Funds (ETFs) available to the retail public in South Africa. The performance tables (attached) measure the 1 month to 5 years total return for a lump sum investment compared with the benchmark index returns (including reinvestment of dividends). All indices are shown in total return format. Note, as the FTSE/JSE calculates the index without taking into account any brokerage or other transaction costs, index tracking products will typically underperform the index because of their transaction and other running costs. Please Note: future performance will not necessarily repeat historic performance data.

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The etfSA Performance Survey measures the total return (Net Asset Value (NAV to NAV)) changes including reinvestment of dividends) for index tracking unit trusts and Exchange Traded Funds (ETFs) available to the retail public in South Africa. The performance tables measure the 1 month to 5 years total return for a lump sum investment compared with the benchmark index returns (including reinvestment of dividends). All indices are shown in total return format. Note, as the FTSE/JSE calculates the index without taking into account any brokerage or other transaction costs, index tracking products will typically underperform the index because of their transaction and other running costs.

Please Note: future performance will not necessarily repeat historic performance data.