Balancing Global Portfolios with Europe and Japan ETFs

Looking Beyond the US

For many investors, global exposure is often diversified geographically, but in practice is heavily exposed to large American technology companies.

While these businesses have delivered strong returns, this concentration can leave portfolios exposed to a single region, one policy environment and a narrow range of sectors, though many of these US based businesses are multinational and generate revenue across the globe.

In the latest Ghost Stories episode, The Finance Ghost speaks and Siyabulela Nomoyi, from Satrix discuss diversifying beyond the US.

Satrix has launched two new ETFs to support this, focused on Europe and Japan.
 

The Satrix Stoxx Europe 600 ETF

The Satrix MSCI Japan ETF

These funds act as building blocks, giving investors exposure to different economies, industries and return drivers that don’t always move in the same direction as the US.

Europe: A Different Growth Engine

The Stoxx Europe 600 Index tracked by the Satrix Stoxx Europe 600 ETF, includes around 600 companies across 17 European countries, including the UK.

It’s one of the most diversified developed market indices available. Europe offers exposure to a very different mix of sectors. Instead of being dominated by big tech, the region is stronger in:

• Industrials and advanced manufacturing
• Financial services
• Energy and natural resources
• Healthcare and pharmaceuticals
• Consumer staples and global luxury brands

These include established engineering groups, global banks, energy majors and well-known consumer brands.

It’s also a region investing heavily in renewable energy, infrastructure and reshoring manufacturing. These trends create long-term opportunities that look very different to the US tech story.

For South African investors who already hold local resources shares and US tech exposure, Europe can add useful balance.

Japan: Innovation in the Real Economy

Japan is the third-largest equity market in the world, yet it often receives a small weight in global core indices.

The MSCI Japan Index, tracked by the Satrix MSCI Japan ETF, focuses on around 180 large- and mid-cap companies that represent 85% of the country’s equity market value.

This market offers exposure to something different again.

Where the US leans into software and cloud, and Europe into industrials and luxury goods, Japan is known for precision manufacturing, automation and robotics. It’s home to global brands across:

• Transport and automotive
• Electronics and hardware
• Advanced engineering
• Industrial technology

These are the companies powering the real economy side of innovation.

Japan is also going through structural changes. Corporate reforms, rising wages and improved shareholder focus are encouraging companies to use capital more efficiently. Share buybacks and dividends are becoming more common, which supports long-term returns.

For investors, this creates a fresh opportunity in a market that has historically been overlooked.

Why Regional ETFs Matter

The key message is simple: these ETFs aren’t replacements. They’re complementary. They help complete the global picture.

By adding regional exposure, investors can:

• Complement the current global exposures in core indices
• Access different industries and growth drivers
• Spread risk across economies and policy cycles
• Build more resilient portfolios over time

It’s like adding new pieces to a puzzle. Each region behaves differently, and that difference is what helps smooth long-term outcomes.

Simple Tools, Broader Opportunity

With platforms like SatrixNOW, gaining offshore exposure is easier than ever.

You don’t need to pick individual stocks or manage currencies yourself. You simply choose the building blocks that suit your goals and invest consistently. As Siyabulela puts it, these ETFs give investors “low-cost tools to diversify and strengthen portfolios”.

Sometimes investing isn’t about finding the next big thing. It’s about spreading your opportunities more wisely.

Listen to the full podcast here.

Disclaimer:

Satrix Investments (Pty) Ltd & Satrix Managers (RF) (Pty) Ltd is an authorised financial services provider. 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. While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSP’s, its 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. For more information, visit https://satrix.co.za/products