How to invest in South Africa using ETFs
How do I invest in South African stocks?
The easiest way to invest in the whole South African stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the South African stock market you'll find 1 index which is tracked by ETFs.
Alternatively, you may invest in indices on Africa.
Performance of South African stocks (MSCI South Africa Capped)
Indices in comparison
The best indices for ETFs on South Africa
For an investment in the South African stock market, there is 1 index available which is tracked by 1 ETF. On the MSCI South Africa Capped index there is 1 ETF. The total expense ratio (TER) of ETFs on these indices is around 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
MSCI South Africa Capped | South Africa | 1 ETF | 37 (30.11.22) | The MSCI South Africa Capped index tracks large and mid cap South African stocks. The weight of the largest constituent is constrained to 33% and the weights of all other constituents are constrained to a maximum of 18%. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI South Africa UCITS ETFIE00B52XQP83 | 154 | 0.65% p.a. | Accumulating | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI South Africa Capped | 0.26% | 7.00% | 21.44% | 32.07% | 22.60% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI South Africa Capped | 19.85% | -1.86% | 1.83% | 12.63% | -11.76% |
Source: justETF.com; As of 31.10.24; Calculations in EUR based on the largest ETF of the respective index.
The cheapest South Africa ETFs
by total expense ratio (TER)
| 1 | iShares MSCI South Africa UCITS ETF | 0.65% p.a. |
Alternative indices with a large share of South Africa
Besides South Africa ETFs you may consider ETFs on the African stock market or emerging markets. In total, you can invest in 2 Africa indices, which are tracked by 2 ETFs. The total expense ratio (TER) of ETFs on Africa or emerging markets is between 0.65% p.a. and 0.85% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging and Frontier (EFM) Africa Top 50 Capped | Africa South Africa: 68.66% (30/11/2022) | 1 ETF | 50 | The MSCI Emerging and Frontier (EFM) Africa Top 50 Capped index tracks the 50 largest companies from emerging and frontier markets in Africa. The share of single countries and companies is limited. Index factsheet |
| SGI Pan Africa | Africa South Africa: 34.83% (30/11/2022) | 1 ETF | 30 | The SGI Pan Africa index tracks 30 large stocks listed in Africa or predominantly exploring African assets. The index is equally exposed to three zones with the largest constituents capped at 10%: South Africa, Northern Africa including Morocco, Egypt and Sub-Sahara excluding South-Africa. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Amundi Pan Africa UCITS ETF AccLU1287022708 | 34 | 0.85% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI EFM Africa Top 50 Capped Swap UCITS ETF 1CLU0592217524 | 31 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| SGI Pan Africa | -1.58% | 3.54% | 10.69% | 16.94% | 5.52% | |
| MSCI Emerging and Frontier (EFM) Africa Top 50 Capped | -1.02% | 4.48% | 15.75% | 17.98% | -2.31% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging and Frontier (EFM) Africa Top 50 Capped | 10.10% | -4.81% | -7.59% | 13.68% | -16.80% | |
| SGI Pan Africa | 12.32% | 1.26% | -7.51% | 9.12% | -6.58% |
Source: justETF.com; As of 31.10.24; Calculations in EUR based on the largest ETF of the respective index.