Access the Global Stock Market in a Single Fund

Access the Global Stock Market in a Single Fund

Introducing the new Satrix MSCI ACWI Feeder (known as “Satrix MSCI ACWI”) exchange traded fund which seeks to track the performance of the MSCI All Country World Index (ACWI), offering investors access to a broad range of companies from developed and emerging markets with a single fund.

Satrix MSCI ACWI ETF 

The Satrix MSCI ACWI ETF will track an index that is a traditional market cap index, used as a benchmark for global equity funds. This index can serve as a core building block in an investor’s overall asset allocation strategy.

The ETF will track an index that is composed of more than 2 900 companies that pull diversified regional revenue exposures from across the globe, with the US contributing 45% of revenue; Emerging Markets 25%, Europe-ex UK 11% and the rest 19%.

Unlike the MSCI World Index, which only takes Developed Markets into consideration, this ETF tracks the MSCI All Country World Index which also includes Emerging Markets. This exposure to Emerging Markets provides investors with an opportunity to track one of the more widely used benchmarks used for global equities, which also includes exposure to large and potentially faster-growing countries like China and India.

This local ETF will list on the Johannesburg Stock Exchange (JSE) and investors will access it in South African rand.

Key Dates

About the MSCI All Country World Index

The index is composed of large and mid-cap stocks across 23 Developed (89%) and 24 Emerging Market countries (11%), unlocking the opportunity for investors to spread their currency risk across different countries. With over 2 900 constituents, the index covers approximately 85% of the global investable equity opportunity universe. The index is well diversified across sectors, as it holds 24% Information Technology stocks, 16% Financials, 11% Health Care, 9% in Resources and Energy stocks and the rest in Industrials_¹. 62% of the index is US exposure, followed by 12% in Europe-ex UK, 11% in Emerging Markets and 14% in other Developed Markets.

Top companies in the index include Apple Inc, Microsoft, Amazon, Meta Platforms A, Alphabet and Tesla – market-leading giants in their respective industries.

Who Should Invest in This ETF?

This ETF is suitable for investors with a long-term investment horizon. The ETF allows investors to conveniently diversify their portfolios by tracking one of the more widely used global equity benchmarks.  In addition to broad Developed Market exposure, it also includes exposure to potentially higher growth Emerging Market economies. Investors should expect and be able to withstand equity volatility over the short term.

How to Invest

The Satrix MSCI ACWI ETF will list on the JSE on Thursday, 22 February 2024, and will then be available on SatrixNOW for investors. It will also be available via other investment platforms and personal stockbroking accounts.   

Existing investors can access the Satrix MSCI ACWI ETF via SatrixNOW, which requires no minimum investment amount.  

New investors who don’t yet have a SatrixNOW account, can register here.  

Download the New Listing Sheet. As of 31 January 2024

Disclaimer

Satrix Investments (Pty) Ltd is an approved financial service provider in terms of the Financial Advisory and Intermediary Services Act, No 37 of 2002 (“FAIS”). The information above does not constitute financial advice in terms of FAIS. 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, 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 disclaim 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.

Satrix Managers (RF) (Pty) Ltd (Satrix) is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. With 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 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. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF Minimum Disclosure Document.  A feeder fund is a portfolio that invests in a single portfolio of a collective investment scheme, which levies its own charges and which could result in a higher fee structure for the feeder fund. International investments or investments in foreign securities could be accompanied by additional risks such as potential constraints on liquidity and repatriation of funds, macroeconomic risk, political risk, foreign exchange risk, tax risk, settlement risk as well as potential limitations on the availability of market information.

For more information, visit https://satrix.co.za/products