Picture: ISTOCK
Picture: ISTOCK

Satrix has topped 10-year performance rankings to September for index-tracking products, a study finds.

Satrix’s Indi 25 exchange traded fund (ETF), which tracks the 25 largest JSE-listed industrial companies by market value, delivered annual returns of 16.27% in the 10 years to September 29, according to etfSA’s monthly survey for index-tracking products.

Two listed property tracking funds followed, the Prudential Enhanced Property Tracker Fund, a unit trust index tracker that delivered per annum performance of 13.96% over the period and the Coreshares PropTrax SAPY, which delivered annual returns of 13.11% tracking the largest listed property stocks. Absa’s NewGold ETF, which tracks the rand price of gold, came fourth at an annual return of 12.33%.

Index-tracking funds, or so-called "passives", have grown rapidly in SA in the past five years, driven primarily by retail investors. Relatively new kids on the block, illustrated by the fact that a number do not have performance data going back as far as 10 or even seven years, these products are likely to grow in popularity as institutional investors join the fray.

The etfSA survey measures total investment returns net of fees and with distributions reinvested for all 71 JSE-listed ETFs and exchange-traded notes (ETN), and 29 index-tracking unit trusts. For periods of three to five years, the developed-market ETFs issued by Sygnia-Itrix were the best performers.

The Sygnia-Itrix MSCI USA ETF, which tracks US companies with a total market value of $14-trillion, delivered annual returns of 24.59% over five years. Over three years, the Deustche Bank MSCI China ETN, delivered 18.96% annually.


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