Know your ETF - Satrix Capped All Share ETF

Satrix Capped All Share ETF 

The Satrix Capped All Share ETF was designed to reduce outsized investor exposure to giant companies such as BHP Group and the Naspers/Prosus stable. Naspers and Prosus have historically dominated the weights of SA’s market capitalisation weighted indices.

This increased the risk of significant investment underperformance, as was the case in 2021 when Naspers and Prosus both lost more than 18.0%. As such, investors who prefer broad, yet capped, exposure to SA equities will take comfort in the ETF’s 10.0% cap on each stock. This provides the potential advantage of a less pronounced drop in performance when the equities market experiences a downturn but at the disadvantage of capped outperformance if the equities market’s performance improvessignificantly. 

Luxury goods giant Richemont has the highest weight in the ETF. It faces rising prices which, economically, should lead to a decline in demand for its goods given the high demand elasticity of luxury goods. It sells most of its products in the Asia Pacific (41.0% of revenue in FY22) and Europe (23.0%). Euro Area inflation rocketed to 10.0% annually in September. In addition, China, Australia and New Zealand which represent a sizeable chunk of the Asia Pacific region have all recorded notable consumer price increases this year. Overall, we also expect the ETF’s leading sectors in basic materials (24.3%) and financials (21.6%) to influence fund returns. Finally, investment performance will also be affected by ongoing local and global economic factors. As such, we believe that this fund may be most useful to investors as part of an overall ETF portfolio. 

The mandate of the Satrix Capped All Share ETF is to track, as closely as possible, the value of the FTSE/JSE Capped All Share Index. Satrix CAPI is an index tracking fund, registered as a collective investment scheme, and is also listed on the Johannesburg Stock Exchange as an ETF. 


Performance 3

Fund suitability   

  • This ETF was designed to give investors less concentrated exposure to SA- listed companies by capping each individual share at 10.0% of the total portfolio. Satrix also describes the fund as the first ETF on the JSE to include all large, mid and small-cap SA listed companies – providing much broader exposure than only the Top 40 companies on the JSE.


  • The Fund's total investment cost (TIC) is 0.33%

Top holdings:

Richemont and Anglo American are the top two holdings in the fund as the decline in Naspersshare price (for most of 2021) has reduced its historically high weight in local, uncapped market-capitalisation weighted indices. 

Satrix Capped All Share ETF (JSE:STXCAP)

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Background: Exchange-traded funds (ETFs)

Exchange-traded funds (ETFs) are passively managed investment funds that track the performance of a basket of pre-determined assets. They are traded the same way as shares and the main difference is that whereas one share gives exposure to one company, an ETF gives exposure to numerous companies in a single transaction. ETFs can be traded through your broker in the same way as shares, say, on the EasyEquities platform. In addition, they qualify for the tax-free savings account, where both capital and income gains accumulate tax free.

Benefits of ETFs

  • Gain instant exposure to various underlying shares or bonds in one transaction
  • They diversify risk because a single ETF holds various shares
  • They are cost-effective
  • They are liquid – it is usually easy to find a buyer or seller and they trade just like shares
  • High transparency through daily published index constituents


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.


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.

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