Investing Locally This Heritage Month

This Heritage Month, we look at three Satrix funds that are proudly South African and what makes them a compelling offering for local investors.

Investing Locally

Adjusting your attitude towards money and investing can set you up for a prosperous future by securing your family’s wealth.  As part of your broad investment portfolio – local funds play an important role in your overall investment strategy. If you were to invest locally, which funds would you choose? This Heritage Month, we look at three Satrix funds that are proudly South African and what makes them a compelling offering for local investors. These funds are some of the oldest JSE-listed exchange-traded funds (ETFs) in the market, that followed after Satrix launched the Satrix Top 40 ETF in 2000.

Satrix RESI ETF 

South Africa’s mining industry has been one of the country’s most influential industries since the 1800s. In South Africa there have been diamond rushes, platinum rushes, and also the famous gold rush in the Witwatersrand area which led to the establishment of Johannesburg. Big mining companies have taken advantage of this resource-rich country, and you as an investor can easily invest in the 10 biggest natural resource companies in South Africa. At a total expense ratio of 0.45%, you get exposure to companies like Anglo American, Gold Fields, Sasol, Impala Platinum and others. Launched in April 2006, this fund tracks the FTSE/JSE Capped Resources 10 Index. It rebalances quarterly and also distributes income quarterly as well. 

Natural resource stocks can offer strong investment returns over the long term, while also offering inflation protection and can diversify portfolio returns. Because the commodities which resources companies extract are priced in US dollars, they provide some rand hedging exposure in your portfolio. For more information on this fund, here is the factsheet


With world-class financial systems having quality governance and oversight, the local banking and financial industry competes with the best in the world. With Banks focusing on a lot of retail-based strategies, and insurers adapting to an ever-changing world, it makes sense to invest in local financial stocks. The Satrix Fini ETF was launched in February 2002 and tracks the FTSE/JSE Financial 15 Index. The biggest positions in the fund are occupied by some of the biggest banks in South Africa; FirstRand, Standard Bank, Absa Group and Capitec Bank Holdings. Apart from banks, the fund also has market leaders in the insurance and investment management space like Sanlam and Discovery, which also sit in the top 10.

Financial stocks are a major contributor to the South African equity market, making up almost 30% of the tradeable universe of stocks listed on the JSE. By investing in this fund, you get exposure to our financial system, which is a key enabler of our local economy, by providing funding, investment and insurance, at a TER of 0.43%. For more information on this fund, here is the factsheet.


There is no fund that embodies “local is lekker”, more than the Satrix INDI ETF - when it comes to the company names that the fund holds. The fund, which was launched in February 2002, tracks the FTSE/JSE Capped Industrial 25 Index. Its top holdings include South Africa’s tech and multimedia giant Naspers, mobile telecommunications’ MTN Group and retail giant Shoprite, a company that puts the local in lekker. Other household names that the fund holds, include Clicks, Multichoice, Mr Price, Netcare, Foschini Group, Vodacom and Woolworths.  All of this, you get for a TER of 0.44%.

Stocks like Shoprite are often deemed to be defensive stocks, which means they can be fairly stable in economic downturns. There are stocks in this fund which offer this exposure, and this makes the fund a good consideration to reduce risk in your overall portfolio, while investing in many local brands. For more information on this fund, here is the factsheet.

Keeping it local 

The above funds provide equity exposure, so they need to be looked at as part of a total investment portfolio. To avoid putting at risk the generational wealth you are building for your family’s future, always stay diversified and avoid high concentrated positions. South Africa has a mix of people from many different backgrounds and cultures, which gives special meaning to celebrating Heritage Month.  These funds will go a long way towards ensuing diversity in your overall portfolio.

CIS disclosure

Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision. Satrix Managers is a registered Manager in terms of the Collective Investment Schemes Control Act, 2002.

While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSPs, their shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information. Full details and basis of the award is available from the Manager.

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