Satrix Managers (Pty) Ltd (Satrix) has listed its Satrix MSCI India Feeder Exchange Traded Fund (ETF) on the Johannesburg Stock Exchange (JSE), which tracks the MSCI India NET TR Index, allowing South African investors an opportunity to get exposure to the Indian stock market.
Shares in this global ETF, which trades under the code STXNDA, started trading this morning when the JSE opened. The MSCI India NET TR Index is designed to track the performance of the large and mid-cap segments of the Indian market, one of the world’s largest and fastest-growing economies. With 107 constituents, the index covers approximately 85% of the Indian equity universe.
Siyabulela Nomoyi, Quantitative Portfolio Manager at Satrix, says India is one of the world’s largest and fastest-growing economies. “Increasingly, investors are looking for alternative sources of portfolio returns, and India offers just such an opportunity. This is because it has a fast-growing and increasingly affluent middle class (around 50 million people today and headed for well over 400 million), a very young and educated population and relatively low wages compared to those in much of the rest of the emerging world.
“Together with these long-term structural benefits and large-scale infrastructure growth, the Indian economy is growing, with its government committed to reform.” “Global multinationals are also starting to question their overdependence on China, leading to a search for a viable alternative. Inexpensive and English-speaking, India is well placed to fill this gap with its established chemical, pharmaceutical, financial technology and electrical manufacturing base”, added Nomoyi
Satrix MSCI India Feeder ETF has been designed to replicate the index by investing in the iShares MSCI India UCITS ETF. In terms of the sector index composition, 23,85% of the weighting will be in financial services, followed by information technology at 19,83% and energy at 11,32%.
The new Satrix India ETF listing brings the number of ETF listings on the JSE to 86, with a total ETF market capitalisation of more than R117.5 billion.
The JSE offers ETFs across different asset classes with diversified exposure and liquidity. There are 54 equity ETFs (29 local and 25 international), 12 bond ETFs (six local and six international), seven property ETFs (three local and four international), eight commodity ETFs and five multi-asset ETFs.
This enables investors to diversify their portfolios in an easy and accessible manner. Commenting on the listing, Valdene Reddy, Director of Capital Markets at the JSE, says ETFs continue to be popular with individual investors due to the diversification and ease of access. This latest Satrix ETF will provide South African investors with an entry point to a dynamic and growing emerging market.
“The ETF market maintains its growth and interest, and we are pleased with its continued momentum and innovation. The new listing allows South African investors to diversify their portfolios and to get exposure to the Indian economy. In addition, this offers a new and broad level of exposure to international markets, easily accessible through products on the JSE,” concludes Reddy.