Satrix is proud to introduce the Satrix MSCI World Islamic ETF, South Africa’s first exchange-traded fund (ETF) with global exposure, designed to adhere to Shariah investment principles.

This innovative ETF, listed on the Johannesburg Stock Exchange (JSE), tracks the MSCI World Islamic Index. This index reflects Shariah investment principles and is designed to measure the performance of large- and mid-cap companies across 23 developed market countries relevant to Islamic investors. The fund is registered as a Collective Investment Scheme and is listed on the JSE under the code STXWIS.

Yusuf Wadee, Head of Exchange Traded Products at Satrix, says, “We are proud to launch South Africa’s first Shariah-compliant ETF with offshore exposure, providing investors with a unique opportunity to access a globally diversified portfolio while adhering to Islamic investment principles. This ETF represents a significant milestone for Satrix and the broader South African investment community.” 
 

Why Invest in the Satrix MSCI World Islamic ETF?

This ETF is perfect for investors with a long-term investment horizon, seeking to align their portfolios with Islamic law. It offers exposure to developed markets and allows investors to build a diversified global equity allocation. Advantages include:

  • Shariah-Compliant Investing: Transparent screening based on MSCI’s methodology
  • Cost-Efficiency: Low fees with a targeted total expense ratio of 0.55%
  • Flexibility and Transparency: Easy access and efficient trading on the JSE
  • Portfolio Diversification: Exposure to large- and mid-cap stocks across 23 developed markets

 

About the MSCI World Islamic Index:

The MSCI World Islamic Index offers a transparent and robust methodology, endorsed by MSCI’s Shariah Advisory committee. The index excludes companies involved in non-compliant activities and applies business activity and financial ratio screens to ensure adherence to Islamic law:

Business Activity Screening: Excludes companies engaged in prohibited activities such as adult entertainment, alcohol, conventional financial services, defence/weapons, gambling, pork-related products, and tobacco. 
Financial Ratio Screening: Ensures no investment in companies with significant interest income or excessive leverage. 
 

Top Ten Constituents of the Index as at 30 September 2024:

Microsoft Corp: 17.53% 
Tesla: 4.33% 
Exxon Mobil Corp: 3.03% 
Procter & Gamble Co: 2.36% 
Johnson & Johnson: 2.25% 
Novo Nordisk B: 2.19% 
Salesforce: 1.53% 
Advanced Micro Devices: 1.53% 
Chevron Corp: 1.49% 
SAP: 1.37%

 

Dividend Purification Process:

In line with Shariah principles, any income derived from interest or prohibited activities will be deducted from dividends and donated to a charity. The MSCI World Islamic Index includes a "dividend adjustment factor" to purify dividends. Satrix will ensure the purification of dividends received within the fund where such dividends have accrued any prohibited income.

 

How to Invest:

Wadee adds, “The new ETF is readily accessible through the SatrixNOW platform. Investors can easily locate and invest in it, thanks to our streamlined process designed to simplify the management of their investments. It’s also accessible via the JSE and other investment platforms.”

For more information on the Satrix MSCI World Islamic ETF, please visit the Satrix website.

 

 

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.  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