Satrix MSCI World ETF: A Comprehensive Guide

In an increasingly interconnected global economy, South African investors are seeking ways to diversify beyond local markets and access international growth opportunities. The Satrix MSCI World ETF (JSE Code: STXWDM) has emerged as one of the most popular investment vehicles for achieving this goal, offering South Africans cost-effective access to the world’s leading companies without the complexity of taking money offshore.

Disclaimer: I am not a financial advisor. This information is for educational purposes only and should not be considered as financial advice. Always do your own research and consider seeking advice from a qualified financial professional before making any investment decisions.

What is the Satrix MSCI World ETF?

The Satrix MSCI World ETF is a feeder fund that tracks the performance of the MSCI World Index in South African Rand by investing in the iShares Core MSCI World UCITS ETF. This structure allows South African investors to gain exposure to global developed markets while investing in rands directly on the Johannesburg Stock Exchange (JSE).

What Does It Track?

The MSCI World Index is a broad global equity benchmark that includes large and mid-cap companies across 23 developed market countries. With approximately 1,325 constituents, the index covers roughly 85% of the free float-adjusted market capitalization in each developed country.

The 23 developed countries included are:

Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, and United States

Geographic Exposure

The fund provides significant exposure to global economic powerhouses, with the United States dominating the index at approximately 72% of the total weighting. This is followed by Japan (5.5%), the United Kingdom (3.6%), Canada (3.3%), and France (2.7%).

Sector Allocation

As of August 2025, the index offers diversified sector exposure:

Information Technology: 26.3%
Financials: 17.2%
Industrials: 11.3%
Consumer Discretionary: 10.4%
Health Care: 9.3%
Communication Services: 8.5%
Consumer Staples: 5.7%
Energy: 3.5%
Materials: 3.3%
Utilities: 2.6%
Real Estate: 2.0%

Fund Performance: The Numbers That Matter

Historical Returns (as of June 30, 2025)

The Satrix MSCI World ETF has delivered compelling long-term returns for South African investors:

Period	Fund Return (Annualized)	Benchmark Return	CPI Inflation
Since Inception	15.7%	15.75%	4.57%
7 Years	14.54%	14.58%	0%
5 Years	13.85%	13.88%	0%
3 Years	19.87%	19.99%	0%
1 Year	15.14%	15.28%	0%
Year to Date	6.63%	6.68%	0%

These returns demonstrate that the fund has consistently tracked its benchmark closely while delivering returns that significantly exceed inflation over the long term. The fund’s 225.06% cumulative return since inception in August 2017 translates to substantial wealth creation for long-term investors.

* Note: All effort has been made to ensure correct data is shown at the time of writing. It may become outdated or show incorrect data due to human error.

Recent Performance

In the second quarter of 2025, the MSCI World Index gained 7.7% in rand terms (11.47% in US dollar terms), demonstrating the strength of global developed markets and the benefit of currency diversification for South African investors.

Cost Structure: Keeping More of Your Returns

Fees and Charges

One of the most attractive features of the Satrix MSCI World ETF is its low-cost structure (in comparison to Unit Trusts):

Total Expense Ratio (TER): 0.78%

These fees are significantly lower than most actively managed funds, which can charge upwards of 1-2% annually. Over time, this cost advantage compounds to make a meaningful difference in your investment outcomes.

The Cost Advantage

The low fee structure is part of Satrix’s broader strategy to democratize access to quality investments. As the fund has scaled since its launch in 2017, Satrix has been able to pass cost savings on to investors, a practice they call the “double dividend” – scale lowers costs, which boosts net-of-fee returns.

Key Benefits for South African Investors

1. Global Diversification

South African investors have historically been concentrated in local equities, which limits exposure to global growth trends. The Satrix MSCI World ETF provides instant diversification across 23 developed countries and multiple sectors, reducing dependence on the performance of the South African economy alone.

2. Currency Hedging

While the ETF is denominated in rands and trades on the JSE, the underlying assets are in foreign currencies (primarily US dollars). This provides natural currency diversification, which can protect against rand depreciation – a significant consideration given South Africa’s economic volatility.

3. Access Without Offshore Complications

Traditional offshore investing requires completing paperwork, obtaining tax clearance certificates, and navigating foreign exchange controls. The Satrix MSCI World ETF eliminates these barriers by allowing you to invest in global markets using rands through your local brokerage account.

4. Tax-Efficient Structure

The fund qualifies as a Tax Free Savings Account (TFSA) investment, allowing South African individuals to benefit from tax-free growth, dividends, and capital gains (subject to annual contribution limits of R36,000 and a lifetime limit of R500,000).

5. Liquidity and Transparency

As a JSE-listed ETF, the fund can be bought and sold during market hours just like any stock. You can see the fund’s holdings, performance, and daily pricing, providing full transparency into your investment.

6. Professional Management and Proven Track Record

Satrix is South Africa’s leading provider of index-tracking products, with nearly 36% market share in the ETF industry. The company has been pioneering index investing in South Africa for 25 years, bringing credibility and expertise to the fund’s management.

Who Should Invest?

The Satrix MSCI World ETF is suitable for:

Long-term investors seeking capital growth over 5+ years
Portfolio builders looking to add international diversification
Index investors who believe in passive, low-cost investing
First-time offshore investors wanting simple global exposure
Retirement savers building long-term wealth
TFSA holders maximizing tax-free growth potential

This fund works well as a core holding in a diversified portfolio, often comprising 30-60% of an investor’s equity allocation depending on their risk tolerance and investment goals.

Recent Developments and Innovation

Expansion into Kenya

In July 2025, Satrix dual-listed the MSCI World ETF on the Nairobi Securities Exchange (NSE), marking the first global equity ETF available to Kenyan investors. This expansion demonstrates Satrix’s commitment to democratizing access to world-class investment solutions across Africa.

Award Recognition

The Satrix MSCI World ETF won the People’s Choice ETF award in the foreign fund category at the South African Listed Tracker Funds Awards, reflecting its popularity among retail investors.

Potential Considerations

Market Concentration

With 72% of the index weighted toward the United States and 26% in information technology, investors should be aware of the concentration risk. The performance is heavily influenced by US tech giants like Apple, Microsoft, and Nvidia.

Currency Risk

While currency diversification can be beneficial, it works both ways. If the rand strengthens significantly against major currencies (particularly the US dollar), returns could be negatively impacted when measured in rands.

Developed Markets Only

The fund tracks only developed markets, excluding emerging markets like China, India, Brazil, and other high-growth economies. Investors seeking broader emerging market exposure may want to complement this ETF with an emerging markets fund.

No Capital Guarantee

Like all equity investments, the fund value can go down as well as up. Past performance does not guarantee future results, and investors should be prepared for short-term volatility.

How to Invest

The Satrix MSCI World ETF is accessible through multiple channels:

SatrixNOW Platform – Satrix’s proprietary online investment platform with no minimum investment requirements
JSE Stockbrokers – Any licensed stockbroker can facilitate trading
Online Trading Platforms – Available through popular platforms like EasyEquities
Financial Advisors – Via Linked Investment Service Provider (LISP) platforms
Retirement Annuities and TFSAs – Can be included in tax-advantaged accounts

Conclusion

The Satrix MSCI World ETF represents a compelling opportunity for South African investors to participate in global economic growth through a single, cost-effective investment vehicle. With its strong historical performance, low fees, broad diversification, and accessible structure, it’s no wonder this fund has become one of South Africa’s most popular ETFs.

For investors seeking to build long-term wealth while reducing reliance on the South African market alone, the Satrix MSCI World ETF serves as an excellent foundation for a globally diversified portfolio. Its combination of simplicity, transparency, and proven results makes it a standout choice in the South African investment landscape.

Additional Resources

Official Satrix Resources

Product Page: Satrix MSCI World ETF Details
Fund Information: Satrix MSCI World Index Fund MDD

Underlying Fund Information

iShares Core MSCI World UCITS ETF: Fund Details