Media Release: Satrix Nasdaq 100 ETF: Low-Cost Access to Global Tech Leaders

Satrix, South Africa’s leading provider of exchange traded funds (ETFs), has converted its Nasdaq 100 Feeder ETF to a direct replication structure, commencing 21 January 2025, providing investors with direct exposure to world-renowned companies like Apple, Microsoft, NVIDIA, and Amazon, at a reduced cost. This shift enhances accessibility, transparency, and cost efficiency for investors seeking exposure to leading global businesses with a proven track record in innovation.

The Satrix Nasdaq 100 Feeder ETF will now be named the Satrix Nasdaq 100 ETF and will be managed entirely by Satrix. 

Direct Access and Lower Costs for Investors

The new direct replication approach is more cost effective and will lower the ETF total expense ratio from 48 to 42 basis points. Lower costs mean more value for clients, aligning with Satrix’s goal of making investing more accessible and affordable.

Kingsley Williams, Chief Investment Officer at Satrix*, says, “Our seasoned team already manages in excess of R40 billion in indexation products directly tracking a variety of global indices. We’ve always had a global tracking capability, but we’re now extending this capability to one of our ETFs offering global exposure.  Nasdaq is synonymous with innovation, and Satrix shares this ethos. By managing the Satrix Nasdaq 100 ETF in-house, we’re enhancing access to these groundbreaking companies while cementing our leadership in delivering forward-thinking investment solutions. As ever, we aim to democratise market access.”

A Commitment to Client-Centric Innovation

Several factors influenced the decision to move the Satrix Nasdaq 100 Feeder ETF to direct replication, according to Yusuf Wadee, Head of Exchange-Traded Products at Satrix. These included the size of the fund, which has reached sufficient scale to efficiently track the underlying securities directly, the complexity of managing custodial relationships across multiple markets, and the cost implications of the feeder fund model. Wadee noted, “When all three of those things line up in a way that makes sense, the decision is made. The Satrix Nasdaq 100 ETF is primed for this type of structure as it meets all the requisite criteria.”

The conversion marks the first time Satrix has transitioned an international ETF from a feeder structure to direct replication. By managing the Satrix Nasdaq 100 ETF directly, Satrix can pass on economies of scale to investors in our products. 

About the Satrix Nasdaq 100 ETF

The Satrix Nasdaq 100 ETF offers exposure to leading global companies across technology, communication, consumer and health care sectors. With the direct replication model, Satrix ensures investors gain cost-effective access to global giants, backed by the expertise of South Africa’s most trusted ETF provider. Wadee concludes, “This change is about putting clients first. The ETF is an ideal choice for investors looking to participate in the growth of the world’s most innovative companies.”

The Satrix Nasdaq 100 ETF is available via SatrixNOW and a variety of LISP platforms. For more information about the fund, visit www.satrix.co.za/products. 

*Satrix is a division of Sanlam Investment Management

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 and an authorised financial services provider in terms of the FAIS.  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. The fund will hold foreign assets and could be exposed to the following risks regarding potential constraints on liquidity and the repatriation of funds: macroeconomic, political, foreign exchange, tax risks, settlement risks and potential limitations on the availability of market information. 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