{"id":1294,"date":"2023-06-07T12:15:07","date_gmt":"2023-06-07T12:15:07","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=1294"},"modified":"2026-03-18T11:46:26","modified_gmt":"2026-03-18T11:46:26","slug":"how-much-money-you-would-have-if-you-invested-r1000-in-the-jse-top-40-sp-500-and-nasdaq-100","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2023\/06\/07\/how-much-money-you-would-have-if-you-invested-r1000-in-the-jse-top-40-sp-500-and-nasdaq-100\/","title":{"rendered":"How much money you would have if you invested R1,000 in the JSE Top 40, S&#038;P 500, and Nasdaq 100"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1295\" src=\"https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/Stock-ticker-index-funds-SnP-Nasdaq-by-Pavel-Ignatov-Shutterstock.jpg\" alt=\"\" width=\"1200\" height=\"800\" srcset=\"https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/Stock-ticker-index-funds-SnP-Nasdaq-by-Pavel-Ignatov-Shutterstock.jpg 1200w, https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/Stock-ticker-index-funds-SnP-Nasdaq-by-Pavel-Ignatov-Shutterstock-300x200.jpg 300w, https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/Stock-ticker-index-funds-SnP-Nasdaq-by-Pavel-Ignatov-Shutterstock-1024x683.jpg 1024w, https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/Stock-ticker-index-funds-SnP-Nasdaq-by-Pavel-Ignatov-Shutterstock-768x512.jpg 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>Challenging South African economic conditions and the weak rand have helped the Satrix Nasdaq 100 and Satrix S&amp;P 500 to significantly outperform the Satrix JSE Top 40.<\/p>\n<p>South Africa has had a tough start to the year. Intensified load-shedding, interest rate hikes, being greylisted, and political tensions have hammered the local economy.<\/p>\n<p>The rand has also weakened to its lowest level ever after the US Ambassador to South Africa claimed the country sold arms to Russia.<\/p>\n<p>Following this debacle, the South African Reserve Bank (SARB) added sanctions by the United States as a new risk in its new Financial Stability Review (FSR).<\/p>\n<p>The SARB also said capital outflows and declining market depth and liquidity are additional risks to the country\u2019s financial stability.<\/p>\n<p>The SARB\u2019s warnings scared many investors, and the rand weakened to R19.87 against the US dollar on Tuesday.<\/p>\n<p>These events have a big impact on South African investors. Those who put their money into global markets are smiling, while people who bet on local companies are feeling the heat.<\/p>\n<p>To illustrate the big difference in performance, Daily Investor compared three ETF investments\u2019 performance for 2023 year-to-date.<\/p>\n<ul>\n<li><strong>Satrix Top 40<\/strong>\u00a0\u2013 The ETF tracks the performance of the FTSE\/JSE Top 40 Index which includes the 40 largest companies on the JSE.<\/li>\n<li><strong>Satrix S&amp;P 500<\/strong>\u00a0\u2013 The ETF provides an investment vehicle for investors wishing to track the movement of the S&amp;P 500 index.<\/li>\n<li><strong>Satrix Nasdaq 100<\/strong>\u00a0\u2013 The ETF provides an investment vehicle for investors wishing to track the performance of the Nasdaq 100 index.<\/li>\n<\/ul>\n<p>The return in rands of a R1,000 investment in these three exchange-traded funds was telling.<\/p>\n<p>The Satrix Top 40 investment grew to R1,043, providing a return of 4.3% in the 5-month period.<\/p>\n<p>The Satrix S&amp;P 500 investment grew to R1,270 over the same period, and, therefore, gave investors a 27% return.<\/p>\n<p>The Satrix Nasdaq 100 was the best performer and delivered R1,514 to investors, a 51.4% return for the five months.<\/p>\n<p>The offshore investments\u2019 strong performance is a combination of capital growth and rand depreciation.<\/p>\n<p>Removing the currency effect from the offshore returns, the S&amp;P 500 investment increased by about 10.3%, meaning the excess 16.7% return was purely due to the weakening rand.<\/p>\n<p>The Nasdaq 100 would have grown by about 32.3% when removing the exchange rate gains, leaving the remaining 19.1% gains to the weakening rand.<\/p>\n<p>The chart below shows the performance of the\u00a0Satrix Nasdaq 100,\u00a0Satrix S&amp;P 500, and\u00a0Satrix Top 40\u00a0year-to-date.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1296\" src=\"https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/SnP-Nasdaq-JSE-YTD-comparison-2023-05May-31.jpg\" alt=\"\" width=\"962\" height=\"657\" srcset=\"https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/SnP-Nasdaq-JSE-YTD-comparison-2023-05May-31.jpg 962w, https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/SnP-Nasdaq-JSE-YTD-comparison-2023-05May-31-300x205.jpg 300w, https:\/\/www.innov8fs.co.za\/blog\/wp-content\/uploads\/2023\/06\/SnP-Nasdaq-JSE-YTD-comparison-2023-05May-31-768x525.jpg 768w\" sizes=\"auto, (max-width: 962px) 100vw, 962px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Challenging South African economic conditions and the weak rand have helped the Satrix Nasdaq 100 and Satrix S&amp;P 500 to significantly outperform the Satrix JSE&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1294","post","type-post","status-publish","format-standard","hentry","category-innov8ions"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=1294"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1294\/revisions"}],"predecessor-version":[{"id":1297,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1294\/revisions\/1297"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=1294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=1294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=1294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}