With little infrastructure options and no major global healthcare companies listed on the JSE, why not track a global index? Get exposure to 387 international companies when investing in the below listed ETF\u2019s.<\/p>\n
As Global markets keep reaching new highs and many stock valuations look expensive, and the US Federal Reserve looks at increasing interest rates to combat inflation, markets are poised for a correction hence investors should probably be a bit more selective this year with market risks weighing on the downside.<\/p>\n
Why not look at these Rand Hedged ETF\u2019s discussed below? Of course, don\u2019t forget to consider Rand cost averaging by buying your units monthly.<\/p>\n
Satrix Global Infrastructure Feeder ETF<\/u><\/strong><\/p>\n As a feeder fund,\u00a0Satrix\u2019s Global Infrastructure Feeder ETF\u00a0acts as a conduit for domestic investors to invest into the\u00a0iShares Global Infrastructure UCITS ETF.<\/p>\n This offshore ETF invests in listed companies that develop, own, operate, manage and\/or maintain structures or networks used for the processing or moving of goods, services, information\/data, people, energy or necessities from one location to another. \u2018Infrastructure\u2019 has toll road-like characteristics, from literal toll roads to power generation to ports and even telecommunications and data centres.<\/p>\n While often capital-intensive to build, these assets are generally considered defensive with strong, steady free cash flows as their users often have few (or no) alternatives and are inelastic to price increases.<\/p>\n This ETF is made up of 52% in utilities, 25% in industrials and the balance in energy, real estate and communication. Over 63% lies in the US, 12% in Canada and the balance mostly spread across the developed world. Finally, the underlying 237 individual holdings have a price-earnings ratio of 25.9x and a dividend yield of 1.9% in US dollars.<\/p>\n With a total expense ratio (TER) of 0.78%, this ETF is somewhat expensive \u2013 but the defensive, yielding characteristics of its global makeup, makes it a unique offering in our local market with defensive, rand-hedge characteristics.<\/p>\n Sygnia Itrix Solactive Healthcare 150 ETF<\/u><\/strong><\/p>\n This niche developed market ETF\u00a0tracks the\u00a0Solactive Developed Markets Healthcare 150 Index, which replicates the free float weighted performance of the largest 150 companies from the healthcare industry.<\/p>\n While the Covid-19 pandemic has highlighted the importance of the healthcare sector, it is also likely to lead to an innovation-led boom in this area \u2013 ranging from an explosion in mRNA vaccine uses to remote medical care and so on.<\/p>\n Traditionally, healthcare has a defensive underpin as it is often non-discretionary in nature with high regulatory barriers to entry.<\/p>\n Once again, despite the attractiveness of the healthcare sector, the JSE has relatively few healthcare counters to choose from.<\/p>\n Thus, tracking a global healthcare index allows an investor to gain the optionality of medical innovation while diversifying their local portfolio.<\/p>\n This ETF\u2019s top holdings include UnitedHealth Group (5.6% weighting), Johnson & Johnson (5.5%) and Pfizer (4.1%), with\u00a0 71.9% of its portfolio lying in the US and 8.2% in Switzerland.<\/p>\n Access these defensive and attractive ETFs through any product, whether a Tax-free Savings Account, Endowment or Retirement Annuity, even a Living Annuity, monthly or lumpsum investment.<\/p>\n","protected":false},"excerpt":{"rendered":" With little infrastructure options and no major global healthcare companies listed on the JSE, why not track a global index? Get exposure to 387 international…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5],"tags":[],"class_list":["post-895","post","type-post","status-publish","format-standard","hentry","category-innov8ions","category-investment"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/895","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=895"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/895\/revisions"}],"predecessor-version":[{"id":896,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/895\/revisions\/896"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}