Satrix, South Africa’s leading provider of exchange traded funds (ETFs), has converted its Nasdaq 100 Feeder ETF to a direct replication structure, commencing 21 January 2025, providing investors with direct exposure to world-renowned companies like Apple, Microsoft, NVIDIA, and Amazon, at a reduced cost. This shift enhances accessibility, transparency, and cost efficiency for investors seeking exposure to leading global businesses with a proven track record in innovation.
The Satrix Nasdaq 100 Feeder ETF will now be named the Satrix Nasdaq 100 ETF and will be managed entirely by Satrix.
Direct Access and Lower Costs for InvestorsThe new direct replication approach is more cost effective and will lower the ETF total expense ratio from 48 to 42 basis points. Lower costs mean more value for clients, aligning with Satrix’s goal of making investing more accessible and affordable.
Kingsley Williams, Chief Investment Officer at Satrix*, says, “Our seasoned team already manages in excess of R40 billion in indexation products directly tracking a variety of global indices. We’ve always had a global tracking capability, but we’re now extending this capability to one of our ETFs offering global exposure. Nasdaq is synonymous with innovation, and Satrix shares this ethos. By managing the Satrix Nasdaq 100 ETF in-house, we’re enhancing access to these groundbreaking companies while cementing our leadership in delivering forward-thinking investment solutions. As ever, we aim to democratise market access.”
A Commitment to Client-Centric Innovation
Several factors influenced the decision to move the Satrix Nasdaq 100 Feeder ETF to direct replication, according to Yusuf Wadee, Head of Exchange-Traded Products at Satrix. These included the size of the fund, which has reached sufficient scale to efficiently track the underlying securities directly, the complexity of managing custodial relationships across multiple markets, and the cost implications of the feeder fund model. Wadee noted, “When all three of those things line up in a way that makes sense, the decision is made. The Satrix Nasdaq 100 ETF is primed for this type of structure as it meets all the requisite criteria.”
The conversion marks the first time Satrix has transitioned an international ETF from a feeder structure to direct replication. By managing the Satrix Nasdaq 100 ETF directly, Satrix can pass on economies of scale to investors in our products.
The Satrix Nasdaq 100 ETF offers exposure to leading global companies across technology, communication, consumer and health care sectors. With the direct replication model, Satrix ensures investors gain cost-effective access to global giants, backed by the expertise of South Africa’s most trusted ETF provider. Wadee concludes, “This change is about putting clients first. The ETF is an ideal choice for investors looking to participate in the growth of the world’s most innovative companies.”