Monthly South African ETF, ETN and index tracking unit trust performance survey
The August Performance Survey of retail index tracking products in South Africa, emphasises the premium performance of commodity based products in recent years.
· NewGold, which is an Exchange Traded Fund (ETF) that physically holds gold bullion and issues securities to investors backed by such physical gold holdings, is the best performing tracker Fund over the 2 year, 3 year and 5 year periods surveyed. It also performed very well in the shorter-term periods, although here some of the more recently issued Standard Bank Commodity-Linker Exchange Traded Notes (ETNs) are showing competitive performance.
· Standard Bank Silver-Linker ETN comfortably leads the one-year performance stakes, with a total return of 104,53% for the 12 months ended 31 August 2011. The Standard Bank Gold-Linker ETN, also shows up well, tending to outperform, even if only marginally the NewGold ETF product, over the 1 to 6 month performance intervals.
The Standard Bank Commodity Linker Notes use futures indices to track the performance of the commodities they follow. Future contracts can benefit from the forward contango and can also provide investors with a margin profit. It is possible that they can provide superior performance to spot metal positions, but this would need to be confirmed over time.
Standard Bank have also listed additional ETNs, giving access to wheat, corn, copper and oil and a basket of commodities in the last two months and the choice of commodity based tracker products has widened significantly in recent times.
With the current turmoil in world financial markets, commodity-based investments appear to be offering a viable alternative investment to counter the disappointing performance in other investment assets. However, to date, very few investors in South Africa appear to have realised the merits of direct investment in commodities, through ETFs and ETNs, as an alternative investment strategy.
|
Best Performing Index Tracker Funds – 31 August 2011 (Total Return %)* |
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|
Fund Name |
Type |
5 Years (per annum) |
|
NewGold |
ETF |
22,52% |
|
Prudential Property Enhanced |
Unit Trust |
17,23% |
|
Satrix INDI 25 |
ETF |
15,80% |
|
3 Years (per annum) |
||
|
NewGold |
ETF |
25,39% |
|
Prudential Property Enhanced |
ETF |
18,56% |
|
Satrix DIVI |
ETF |
17,65% |
|
2 Years (per annum) |
||
|
NewGold |
ETF |
30,29% |
|
Satrix INDI 25 |
ETF |
20,57% |
|
NewFund eRafi INDI 25 |
ETF |
16,67% |
|
1 Year |
||
|
Standard Bank Silver-Linker |
ETN |
104,53% |
|
Standard Bank Palladium-Linker |
ETN |
47,82% |
|
NewGold |
ETF |
39,23% |
|
6 Months |
||
|
Standard Bank Gold-Linker |
ETN |
31,03% |
|
NewGold |
ETF |
29,16% |
|
Standard Bank Silver-Linker |
ETN |
25,10% |
|
3 Months |
||
|
Standard Bank Gold-Linker |
ETN |
22,19% |
|
NewGold |
ETF |
20,48% |
|
1 Month |
||
|
Standard Bank Gold-Linker |
ETN |
17,54% |
|
NewGold |
ETF |
16,90% |
|
Source: Profile Media FundsData (31/08/2011) * Includes reinvestment of dividends. |
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The full etfSA Performance Survey is attached. The etfSA Performance Survey measures the total return (price changes plus reinvestment of dividends) for index tracking unit trusts and Exchange Traded Funds (ETFs) available to the retail public in South Africa. The performance table (attached) measures the 1 month to 5 years total return compared with the benchmark index returns (including reinvestment of dividends). 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.
|
MONTHLY PERFORMANCE SURVEY OF INDEX TRACKING ETFS, ETNs AND UNIT TRUSTS For Period Ended 31 August 2011 (Total Returns – dividends reinvested) |
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|
A) EXCHANGE TRADED FUNDS |
1 Month |
3 Months |
6 Months |
1 Year |
2 years p.a. |
3 years p.a. |
5 years p.a. |
|
1. TOP 40 ETF PRODUCTS |
|
|
|
|
|
|
|
|
FTSE/JSE Top 40 Index |
(0,27%) |
(5,00%) |
(3,33%) |
17,67% |
13,67% |
5,36% |
9,34% |
|
BIPS Top 40 Portfolio |
(0,29%) |
(5,03%) |
(3,41%) |
17,36% |
13,39% |
- |
- |
|
Nedbank BettaBeta Equally Weighted Top 40 |
1,56% |
(1,89%) |
0,96% |
17,10% |
- |
- |
- |
|
Satrix 40 Portfolio |
(0,32%) |
(5,05%) |
(3,49%) |
17,18% |
13,22% |
4,95% |
8,97% |
|
Satrix SWIX Top 40 Portfolio A |
0,84% |
(3,22%) |
0,09% |
17,79% |
13,47% |
6,32% |
9,83% |
|
Stanlib Top 40 |
(9,02%) |
(8,38%) |
(11,19%) |
- |
- |
- |
- |
|
Stanlib Swix Top 40 |
(8,44%) |
(8,25%) |
(7,92%) |
- |
- |
- |
- |
|
2. JSE Sector Exposure ETFs |
|
|
|
|
|
|
|
|
FTSE/JSE Industrial 25 Index |
0,26% |
(1,19%) |
6,75% |
24,36% |
21,12% |
15,29% |
16,27% |
|
NewFunds eRAFI INDI 25 |
(2,64%) |
(3,66%) |
2,51% |
17,14% |
16,67% |
- |
- |
|
Satrix INDI 25 |
0,22% |
(1,25%) |
6,57% |
23,83% |
20,57% |
14,72% |
15,80% |
|
FTSE/JSE Financial 15 Index |
1,33% |
(2,22%) |
3,71% |
9,69% |
12,26% |
9,50% |
6,66% |
|
NewFunds eRAFI FINI 15 |
(1,05%) |
(6,21%) |
(0,92%) |
4,87% |
7,78% |
- |
- |
|
Satrix FINI 15 |
1,13% |
(3,48%) |
2,09% |
7,80% |
10,03% |
7,87% |
5,26% |
|
NewFunds eRAFI RESI 20 |
(4,54%) |
11,25% |
(14,75%) |
11,02% |
7,84% |
- |
- |
|
Satrix RESI 10 |
(1,54%) |
(8,89%) |
(13,44%) |
13,65% |
8,29% |
(2,39%) |
5,54% |
|
3. Bond (Fixed Interest) ETFs |
|
|
|
|
|
|
|
|
All Bond Total Return Index |
3,54% |
5,17% |
9,63% |
9,00% |
11,75% |
11,73% |
9,62% |
|
zShares GOVI |
3,45% |
5,01% |
9,10% |
8,41% |
10,86% |
- |
- |
|
BIPS Inflation Linked (Inflation-X) |
3,49% |
5,10% |
8,62% |
9,83% |
10,00% |
- |
- |
|
MONTHLY PERFORMANCE SURVEY OF INDEX TRACKING ETFS, ETNs AND UNIT TRUSTS For Period Ended 31 August 2011 (Total Returns – dividends reinvested) |
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|
A) EXCHANGE TRADED FUNDS(continued) |
1 Month |
3 Months |
6 Months |
1 Year |
2 years p.a. |
3 years p.a. |
5 years p.a. |
|
|
4. Property ETFs |
||||||||
|
Proptrax SAPY |
1,95% |
4,25% |
10,93% |
12,94% |
22,10% |
16,31% |
- |
|
|
Proptrax TEN |
(0,89%) |
- |
- |
- |
- |
- |
- |
|
|
5. “Style” ETFs |
|
|
|
|
|
|
|
|
|
FTSE/JSE All Share Index |
(0,32%) |
(4,29%) |
(2,39%) |
16,88% |
14,24% |
6,75% |
10,08% |
|
|
NewFunds Shari’ah Top 40 |
(3,59%) |
(8,91%) |
(10,27%) |
13,25% |
8,04% |
- |
- |
|
|
NewFunds NewSA |
(1,46%) |
(5,78%) |
(3,09%) |
13,69% |
11,65% |
- |
- |
|
|
NewFunds NewRand |
(1,44%) |
(5,26%) |
(4,53%) |
11,89% |
10,34% |
8,30% |
7,55% |
|
|
NewFunds eRAFI Overall |
(1,97%) |
(5,62%) |
(4,66%) |
12,42% |
12,05% |
7,15% |
- |
|
|
NewFunds MAPPS – Protect |
1,21% |
0,58% |
- |
- |
- |
- |
- |
|
|
NewFunds MAPPS – Growth |
(0,37%) |
(3,01%) |
- |
- |
- |
- |
- |
|
|
Satrix DIVI Plus |
0,00% |
(0,02%) |
4,30% |
13,28% |
15,75% |
17,65% |
- |
|
|
Satrix RAFI Total Return |
(0,28%) |
(4,10%) |
(2,63%) |
17,32% |
14,77% |
- |
- |
|
|
6. Foreign ETFs |
|
|
|
|
|
|
|
|
|
MSCI World Index (in Rands) |
(4,30%) |
(8,73%) |
(9,95%) |
6,19% |
(0,32%) |
(6,58%) |
(2,88%) |
|
|
DBX Tracker MSCI EuroStoxx 50 |
(9,98%) |
(17,05%) |
(18,14%) |
(3,47%) |
(11,67%) |
(13,20%) |
(5,82%) |
|
|
DBX Tracker MSCI FTSE 100 |
(3,52%) |
(7,67%) |
(7,73%) |
6,36% |
1,60% |
(5,50%) |
(2,84%) |
|
|
DBX Tracker MSCI USA |
(1,69%) |
(7,05%) |
(6,95%) |
11,40% |
4,45% |
(3,88%) |
- |
|
|
DBX Tracker MSCI Japan |
(4,19%) |
(1,21%) |
(13,37%) |
(0,02%) |
(5,96%) |
(7,40%) |
- |
|
|
DBX Tracker MSCI World |
(3,09%) |
(8,15%) |
(8,84%) |
7,62% |
1,34% |
(5,40%) |
- |
|
|
Source: |
Profile Media – FundsData (31/08/2011) |
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