July 2013 – etfSA.co.za Monthly South African ETF, ETN and Unit Trust Index Tracking Performance Survey
“Rand hedge” investments, notably the DBX Tracker Funds, dominate the short-term performance returns of index tracking ETPs and unit trusts. The DBX Tracker ETFs, which are listed on the JSE as “inward investments”, so do not impact on foreign exchange a
Over the past year, the DBX Tracker Eurostoxx 50 ETF, with a 55,5% return, the DBX Tracker Japan ETF, with 52,9% and the DBX Tracker USA ETF, with 46,9% total returns, showed that it was possible to: both protect against the weakening of the rand; but to also achieved substantial investment returns, utilising the wide range of ETP products, now available on the JSE.
The “offshore” ETFs are also starting to show up strongly in the 2 year, 3 year and 5 year top performance rankings, although the Satrix INDI 25 ETF, which tracks the “rand hedge” dominated FTSE/JSE Industrial 25 index, remains the best performer on a consistent basis.
ETPs, which track the global price of crude oil, namely the RMB Oil ETF and the Standard Bank Oil Linker ETN, may be an early indication of a positive turn in the commodity price cycle based on the past 3 month performance.
The full etfSA.co.za Performance Survey is attached.
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.
