Welcome to the first ETF Monthly Review, a neat monthly update of market news affecting ETFs, as well as a set of favourite funds chosen by the Intellidex team. We’re collaborating with Intellidex to bring you the latest insights on ETFs, probably the niftiest way to invest out there!
What’s happened in the markets?
Local shares were largely subdued during February despite some positive developments on the political front. The all share index fell 0.6% month on month, erasing the 0.2% gain recorded during the month of January. Positive month-on-month returns from consumer services (0.2%), financials (4.3%), telecoms (0.9%) and health care (-2.2%) were more than offset by resources (-3.7%), industrials (-1.3%), consumer goods (-7.2%) and technology (-1.1%).
February wasn’t a good month for global equities. Most international indices suffered heavy losses following the release of a key US inflation report which showed that the consumer price index (CPI) leaped 0.5% in January, stronger than the consensus forecast of 0.4%.
Our favourite ETFs
Domestic equity:
Satrix SA Quality ETF
Satrix SA Quality ETF remains our choice for investors seeking exposure to domestic equities. We like its investment philosophy. Satrix SA Quality is one of the few funds in this segment which uses key financial ratios in screening potential investments. Read more...
Foreign equities:
Ashburton Global 1200 ETF
Unlike in the domestic equities segment, most international ETFs use the same factor in screening investments – market capitalisation.It beats its competitor, the Sygnia MSCI World, in that it invests in both developed and emerging markets, while the Sygnia ETF invests only in developed markets. Read more...
Bond and cash funds, short term:
NewFunds TRACI 3 Month
If you are investing for a very short period, usually less than a year, then the NewFunds TRACI 3 Month ETF (NFTRCI) is a natural choice because it is least sensitive to sudden adverse interest rate movements. It is similar to earning interest on your cash at the bank with a minimal possibility of capital loss. Read more...
Bond and cash funds, long term:
Satrix ILBI ETF
For a longer investment horizon, the motivation is to protect your investment against inflation. Because the Satrix ILBI ETF promises to have the lowest expense ratio of 0.22%, it is our choice here.
Disclaimer
This research report was issued by Intellidex (Pty) Ltd. Intellidex aims to deliver impartial and objective assessments of securities, companies or other subjects. This document is issued for information purposes only and is not an offer to purchase or sell investments or related financial instruments. Individuals should undertake their own analysis and/or seek professional advice based on their specific needs before purchasing or selling investments. The information contained in this report is based on sources that Intellidex believes to be reliable, but Intellidex makes no representations or warranties regarding the completeness, accuracy or reliability of any information, facts, estimates, forecasts or opinions contained in this document. The information, opinions, estimates, assumptions, target prices and forecasts could change at any time without prior notice. Intellidex is under no obligation to inform any recipient of this document of any such changes. Intellidex, its directors, officers, staff, agents or associates shall have no liability for any loss or damage of any nature arising from the use of this document.
Remuneration
The opinions or recommendations contained in this report represent the true views of the analyst(s) responsible for preparing the report. The analyst’s remuneration is not affected by the opinions or recommendations contained in this report, although his/her remuneration may be affected by the overall quality of their research, feedback from clients and the financial performance of Intellidex (Pty) Ltd.
Intellidex staff may hold positions in financial instruments or derivatives thereof which are discussed in this document. Trades by staff are subject to Intellidex’s code of conduct which can be obtained by emailing mail@intellidex.coza.
Intellidex may also have, or be seeking to have, a consulting or other professional relationship with the companies mentioned in this report.