May 2014 – etfSA.co.za monthly South African ETF, ETN and Unit Trust index tracking performance survey
03 June 2014 | Investments | ETF's (Exchange Traded Funds) | Mike Brown, etfSA.co.za
The Monthly Performance Survey for the period ended 30 May 2014 is attached. The total return performance (with dividends reinvested), is assessed for periods from 1 month to 5 years for 65 ETPs listed on the JSE and for 18 index tracking unit trusts.
With passive index tracking investment now becoming more mainstream in South Africa, some unit trust companies are now offering index tracking products that are not listed on the JSE (like ETFs and ETNs), but can be purchased directly from the issuing company or through certain investment platforms.
It is interesting to compare the performance of index tracking unit trusts and ETPs, tracking the same index.
Exchange Traded Funds hold the edge in performance returns over similar unit trusts tracking the same index. This appears to be because of the greater tracker efficiency caused by more rigorous exchange listed requirements, full disclosure of costs and the greater visibility of ETPs creating more competition amongst issuers.
A summary of the best performing index tracking funds for the period ended May 2014 is shown below.
Summary Table
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.
