Nasdaq100
The present Satrix Nasdaq 100 ETF (JSE code: STXNDQ) is that of a feeder fund and Satrix desires to alter it to be a typical fund.
A feeder ETF is when the issuer easy makes use of one other ETF because the asset held throughout the ETF. Up till now Satrix has used the iShares Nasdaq 100 UCITS ETF and the logic is that not solely is it simple, but it surely’s additionally low-cost. Particularly when initially itemizing an ETF.
However then the ETF grows in measurement (STXNDQ is now +R5billion) and it begins to make financial sense to really handle the fund your self. It’ll have the identical final shares with the identical weightings, however relatively than simply shopping for the offshore ETF they purchase the person shares.
The important thing level is that the TER will drop from the present 0.48% to an anticipated 0.42%, so a small saving yearly for buyers.
For those who maintain the ETF yo ought to have obtained a poll kind out of your dealer, if not contact them and ask for it.
You will have till 27 September to submit your poll and if accredited the change will take impact from the tip of October. The code and tax-free statutes will stay unchanged.
My take is straightforward, cheaper is at all times higher so I just like the change.
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