Article by Satrix Investments

  • Satrix Inclusion and Diversity ETF invests in the JSE's 30 most diverse and inclusive companies.
  • These 30 companies scored the highest on metrics such as gender split, BEE, number of disabled employees, HIV/AIDS policies, day-care, working hours and more.
  • Woolworths, Nedbank, BAT, Adcock Ingram and Foschini are among the top scorers.
  • The index tracked is based on research by Refinitiv, the world's largest provider of financial markets data.
  • Research has shown that companies with diverse workforces perform well in the complex, interconnected digital world.

It has been shown that diverse teams perform better, creating the potential for their companies to yield better long-term results. They base their decisions on a wider set of considerations and ideas; they are more creative; and they are more responsive to change. For the first time, South African investors can invest in the most inclusive and diverse companies on the Johannesburg Stock Exchange (JSE) through a Satrix exchange-traded fund focused on inclusion and diversity.

Like many of the ETFs listed by Satrix over the years, the Satrix Inclusion and Diversity ETF is a South African first. It tracks a unique Diversity and Inclusion index, developed with Refinitiv, the world's largest provider of financial markets data and infrastructure. The index ranks JSE-listed companies according to key metrics, along with specific transformation metrics unique to South Africa, to create a one-of-a-kind ETF of South Africa's most inclusive and diverse organisations.

Metrics include gender diversity of the workforce and diversity at board level and specifically focuses on inclusion by looking at the percentage of employees with disabilities, companies' BEE scorecards, and policies on, for instance, HIV/AIDS day-care, flexible working hours and more.

Woolworths, Nedbank, British American Tobacco, Adcock Ingram and Foschini are among the top scorers in the ETF.

Globally, there is a trend towards recognising inclusion and diversity as a business and investment asset.

Reece Briesies, CEO of Satrix (Interim), says there is encouraging evidence that companies that are world leaders in terms of workplace inclusion and diversity are not only good for their employees, but they also make a materially good investment. "The single biggest challenge businesses face today is meeting the needs of an interconnected and layered world. No business can hope to succeed without having a workforce as varied as the world in which it operates. Any company that doesn't take inclusion and diversity seriously is at risk of simply not understanding how to service its markets."

Siyabulela Nomoyi, portfolio manager of the ETF, adds that not only is the Satrix Inclusion and Diversity ETF based on sound investment principles, the fund is also aligned with Satrix's deep commitment to diversity and inclusion. "A PwC 2020 report on executive directors indicated that women make up only 6% of CEOs of JSE-listed companies. This is a clear example of why South Africa needs an inclusion and diversity ETF that will allow investors to invest in the change they want to see on the JSE."


Global index provider, Refinitiv (an LSEG business), created an index that includes companies with high levels of diversity, inclusion and people development, and low levels of controversy. Satrix and Refinitiv worked together to bring you the first South African version of this index, which is tracked by the Satrix Inclusion and Diversity ETF, and includes only stocks listed on the JSE.


The index uses as its starting point all the listed companies on the JSE that meet Refinitiv's economic, social and governance (ESG) criteria. Then, 25 measures are applied that fit into one of the four Inclusion and Diversity (I&D) pillars, namely:

  • Diversity
  • Inclusion
  • People development
  • News and controversies

Each company is assigned a score for each of the four pillars.

Companies with a non-zero score on each of the four pillars are assigned an overall score, which is simply the average fo the pillar scores. They are then ranked based on their overall score in descending order, and the top 30 are included in the index.

The 30 resultant companies are subsequently weighed and ordered according to their free float market capitalisation and adjusted for liquidity. Following this, they are capped at 10%. A sectoral cap of 30% is also applied. The biggest companies (by weight) in the index are those ones among the 30 with the largest free float market cap.


This fund is ideal for investors who value companies with high levels of inclusion, diversity and people development, and low levels of controversy. It provides an opportunity to select companies with a greater chance at innovation and long-term growth.


Investors can access the Satrix Inclusion and Diversity ETF via which has no minimum investment amount. Simply login to your account and select "Invest Now". You can invest via your standard or tax-free savings account.

If you don't have an account yet, you can register here.

The ETF is also available via other investment platforms and personal stock broking accounts.

Click here to learn more about the fund. Click here to download further info.

Satrix Managers (RF) (Pty) Ltd (Satrix) a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. Unit Trusts and ETFs the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange. ETFs are index tracking funds, registered as a Collective Investment and can be traded by any stockbroker on the stock exchange or via Investment Plans and online trading platforms. ETFs may incur additional costs due to it being listed on the JSE. Past performance is not necessarily a guide to future performance and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The index, the applicable tracking error and the portfolio performance relative to the index can be viewed on the ETF Minimum Disclosure Document and or on the


POSTED : 12 APRIL 2022

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