Satrix - people still using them?

xrapidx

xrapidx

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Thinking of signing up just as a backup source of funds one day

R500 to Satrix 40
R500 to Satrix Rafi
R500 to Satrix Indi
 
I do. I am pretty certain quite a few other people do to.

Look out for last weeks podcasts from 702's The Money Show (i missed it myself), they discussed EFT vs Unit Trusts - might give you some more info on what some of the current thinking is.
 
You can either buy Satrix ETF's directly from Satrix, or you can buy them as actual shares through an online share trading platform like FNB, for example.

They are a great way of getting into the market if you only have a small amount to invest and want to diversify your portfolio.
 
what would the benefit be of doing it through FNB? Doesn't it work out more expensive?
 
xrapidx said:
what would the benefit be of doing it through FNB? Doesn't it work out more expensive?
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With FNB you will pay a monthly charge of R17 for their share investing account, plus trading fees for any shares bought or sold.

Not sure what the fees are if you buy them directly from Satrix but I'm sure you can work out which one is better. Bear in mind though that the FNB share investing account can also be used to buy Krugerrands and other shares too.
 
I've got some money going into the Satrix Divi and then beginning next year I'm going to put some into Satrix RAFI on a monthly basis as well.

This gives me exposure to 61 companies (12 are duplicated between the two indexes) that are focused on good dividends (and other things under the RAFI index) and over the long term the dividend growth reinvested should make the final amount returned shine. So you need to analyse how much overlap is between the indexes as well. While the Indi seems to have performed well, for me it would add no value to go into it in 2013 since I will already hold parts of shares in most of the Indi index companies.

The Top40 performance seems to be lacking over the last few year (compared to the funds I've been looking into) and the Top40 is a bit resource shares heavy so is heavily influenced by things affecting Chinas demand for raw resources.

Also interesting to note is that the indexes are in for a shift early next year when British American Tobacco (and a few other so called "inwardly listed" companies) is going to show on the indexes.
 
And a question I still need to find the answer for, if you invest in 2 or 3 indexes on Satrix does the R3.50 debit order cost cover all the index investment amounts or do you pay R3.50 for per seperate indexes investment?
 
I decided on those three by checking their performance over the last 5 years...

Not sure re: debit order, it looks like they'll bill you once per investment.
 
Better returns than most mutual funds. However, Allan Gray Equity Fund has been the best performing for the past 6 years, even better than Satrix 40
 
If you decide you want out, there's no penalty, just the sale fee, correct?
 
Why not look at asset managers, like Coronation, RMB, Sanlam, Allan Gray, Old Mutual, etc?

Get an online account with them.

Tracker funds are guarenteed to underperform.
I am still buying one though.
 
chrisc4290 said:
Better returns than most mutual funds. However, Allan Gray Equity Fund has been the best performing for the past 6 years, even better than Satrix 40
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yip.

Brummer's research shows that the top five "premium brand" unit trusts over the last ten years outperformed the Satrix 40 by 4,1% a year which meant that investing R10 000 in November 2000 into “premium branded” unit trusts would now be worth R58 141, verses R41 907 invested in the Satrix ETF, which is 38,7% more in value. But past performance is not a guareentee of future performance.
The best performers
Average annual performance of five premium brands from November 2000 to April 2010

Nedbank Rainmaker: 22,2% p.a.
Allan Gray Equity: 21,7% p.a.
Coronation Top 20: 21,6% p.a.
Prudential Equity: 18,7% p.a.
Investec Equity: 18,1% p.a.
Average of top five 20,5% p.a
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http://mg.co.za/article/2010-06-03-the-etf-vs-unit-trust-debate
 
alf101 said:
Why not look at asset managers, like Coronation, RMB, Sanlam, Allan Gray, Old Mutual, etc?

Get an online account with them.

Tracker funds are guarenteed to underperform.
I am still buying one though.
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Underperform against what? Most active managed funds?

Research shows that something like 80% of actively managed funds perform below the general market, so you have to make certain your choose the correct one. If you demand links I'll go find them.
 
xrapidx said:
How about my initial 3 and Allan Gray Equity fund :)
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I was about to ask the same question. I currently invest in the Allan gray Equity fund. I think a lot of the companies AG Equity Fund invests in are also in the SATRIX from your initial 3.
 
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