SATRIX ADDS GLOBAL BONDS TO ETF SUITE
The new Satrix Global Aggregate Bond ETF listed on the JSE on 19 August 2020. This is our first global bond offering and the sixth in our global ETF range. The Satrix Global Aggregate Bond ETF tracks the Bloomberg Barclays Global Aggregate Index, giving investors access to investment grade bonds across developed and emerging markets.
Investors can access this global ETF in South African Rand. Satrix will replicate the index by investing in the iShares Core Global Aggregate Bond UCITS ETF. Distributions are made semi-annually.
Allocating to global bond markets gives investors exposure to an asset class which is a natural complement to global equities, and can play a significant role in diversifying a portfolio. Global bonds provide exposure to a much greater and more broadly diversified number of interest-bearing securities across a wider range of markets and economic environments.
ABOUT THE INDEX
The Bloomberg Barclays Global Aggregate Index includes treasury, government-related, corporate and securitised bonds from both developed and emerging market issuers. These global bonds are of investment-grade quality or better, and have at least one year to maturity. The securities represented in the index are weighted according to the market size of each bond type.
The charts below show the geographical split and top issuers. US debt is the largest geographical exposure, followed by Japan, France and China. However the exposure to the US is significantly lower relative to global equity indices.
The performance is shown in US dollar and South African rand. When investing South African rand to access exposure to a US dollar based index, investors are also exposed to exchange rate risk. This means that your performance will be positively affected if the rand weakens against the dollar, and negatively affected if the rand strengthens.
HOW TO ACCESS
Investors can access the Satrix Global Aggregate Bond ETF via SatrixNOW.co.za, which has no minimum investment amount. Simply login to your account and select "Invest Now". You can invest via your Standard account or Tax Free Savings Account.
If you don't have an account yet you can register here.
The ETF will also be available via other investment platforms and personal stockbroking accounts.
POSTED : 18 AUGUST 2020