ETF RA options/ best option

[lucifir]

Currently looking at investing in an ETF RA, but not sure which 1 to choose.
Was looking at 10x , etfsa and itransact.
I think I prefer etfsa, mainly for the different options in terms of risk they offer(as well as them having an offshore allocation), but not sure if they are the most cost effective to achieve this??

Can anyone provide some insight into any of these (or other options)??

Also, is it weird that them not having an online application process is putting me off etfsa??

 

[Verde]

Sygnia (not an etf RA, but neither is 10x) offers SA's lowest cost RA if you use their low cost index tracking fund.

http://www.sygnia.co.za/collective-...2014-NOV-Sygnia-Skeleton-Balanced-70-Fund.pdf

http://www.iol.co.za/business/perso...-active-passive-debate-1.1699959#.VImpmTHxKow

 

[Garson007]

I'm going to go with ETFSA, CPI+7% option for this financial year.

 

[lucifir]

Sygnia (not an etf RA, but neither is 10x) offers SA's lowest cost RA if you use their low cost index tracking fund.

http://www.sygnia.co.za/collective-...2014-NOV-Sygnia-Skeleton-Balanced-70-Fund.pdf

http://www.iol.co.za/business/perso...-active-passive-debate-1.1699959#.VImpmTHxKow

what do you mean not etf RA?? thought that was the whole point of these funds, i.e. they track an index, but is an RA

I'm going to go with ETFSA, CPI+7% option for this financial year.

Also looking at this option, but hate to fill in paper work

 

[Verde]

Satrix RA is available:
http://www.satrix.co.za/documents/satrix-forms/ra/050815_Satrix brochure_v3.pdf

I have been waiting for years to see the Satrix RA offering.
So at last we have it, and what a huge disappointment it is:

Costs (VAT included):
Annual service fee -Satrix 0.285%
Annual admin fee - Glacier 0.57%
Annual fund management fee Satrix Balanced Index fund 0.684%

Total 1.539% pa

Compare that to Sygnia whose similar product will cost 0.4% pa

To illustrate the effect of the 1.139% pa cost difference, a 40 year investment (typical retirement accumulation period) earning 10% pa before costs will end up buying you 36% more retirement income with Sygnia's costs over Satrix's costs.
Put another way, more than a third of your potential retirement savings will go towards Sanlam's (Satrix's owner) shareholders. That is if you are a direct customer. If you use a broker, you will have to sacrifice another sizeable chunk towards their costs.

Clearly Sanlam has not changed one bit - still relentlessly exploiting investors.

 

[Analog Revenant]

So at last we have it, and what a huge disappointment it is:

<snip>

Clearly Sanlam has not changed one bit - still relentlessly exploiting investors.

Yeah, quite a disappointment hey.