Satrix has listed two new exchange traded funds (ETFs) on the Johannesburg Stock Exchange, providing investors with targeted exposure to developed markets outside the United States.
The Satrix Stoxx Europe 600 ETF (STXEUR) and the Satrix MSCI Japan ETF (STXJPN) were launched on 19 February 2026. The launch comes at a time when widely used global equity indices have become increasingly concentrated in US-listed companies, prompting some asset managers to revisit regional allocations within developed markets.
Satrix says the products are intended to help investors address geographic concentration within global equity portfolios.
Siyabulela Nomoyi, quantitative portfolio manager at Satrix, says many investors equate global equity exposure with broad regional diversification, but in practice may be more exposed to a single market than they realise.
“When clients look at their portfolios, they often see ‘global’ exposure and assume they are fully diversified. However, because US stocks have run so hard, global exposure has largely become US mega-cap growth exposure,” he says.
Nomoyi argues this concentration has implications in a world where major central banks are no longer moving in sync. The US Federal Reserve, the European Central Bank, and the Bank of Japan are navigating different inflation dynamics and growth conditions, which in turn influence corporate earnings and valuation cycles across regions.
“In a changing policy environment, regional diversification becomes a tool for resilience,” he says, adding that geographic allocations expose investors to distinct economic structures and sector compositions rather than a single dominant growth narrative.
Europe: broad developed market exposure
The Satrix Stoxx Europe 600 Feeder ETF tracks the Stoxx Europe 600 Net Total Return Index, which comprises 600 large-, mid- and small-cap companies across 17 developed European markets. The benchmark includes the United Kingdom, as well as eurozone countries, broadening exposure beyond single-currency regional indices.
According to its Minimum Disclosure Document, the ETF seeks to replicate the index by investing in underlying securities in proportions closely aligned to their index weights. The total expense ratio (TER) is 0.25% including VAT.
The fund is classified as global equity unclassified and carries an aggressive risk profile.
Nomoyi says including the UK broadens the opportunity set, giving investors access to London-listed multinational companies alongside European leaders in pharmaceuticals, luxury goods and energy.
He describes the fund not as a replacement for broad global indices, but as a complementary allocation designed to “complete the global picture” for investors seeking clearer geographic building blocks within developed markets.
The ETF does not distribute income, with dividends reinvested within the portfolio.
Japan: exposure to a distinct market structure
The Satrix MSCI Japan Feeder ETF tracks the MSCI Japan Net Total Return Index, providing exposure to approximately 190 large- and mid-cap companies representing about 85% of Japan’s listed equity universe.
To achieve its objective, the ETF invests in an underlying UCITS fund that seeks to replicate the MSCI Japan Index through direct replication.
The benchmark is measured in rand terms, meaning returns to South African investors will reflect both Japanese equity performance and currency movements relative to the rand.
Nomoyi says Japan offers a different sector composition compared with the US market, with stronger representation in automation, robotics, precision engineering, and the automotive sector. He also points to corporate governance reforms as a structural shift underpinning the allocation case.
“For many years, the narrative around Japan centred on value trapped in deflation and cash-heavy balance sheets,” he says. “There is now a renewed focus on capital efficiency, return on equity and shareholder returns.”
The Japan ETF has a TER of 0.35% including VAT and is likewise classified as global equity unclassified with an aggressive risk profile. As with the Europe fund, it does not distribute income.
Positioning and structure
Satrix positions both ETFs as long-term geographic building blocks rather than short-term thematic products.
“We are not launching storytelling ETFs,” Nomoyi says. “Institutions don’t simply buy ‘the market’; they think about policy regimes, economic structures and where growth will come from.”
He says the intention is to give retail investors access to the same regional allocation tools used in institutional portfolio construction.
Both ETFs are feeder structures listed on the JSE and qualify as tax-free investments under section 12T of the Income Tax Act, subject to annual and lifetime contribution limits.
As fully equity funds classified as aggressive risk portfolios, returns will be influenced by market movements in the underlying regions, as well as currency fluctuations.
