Share Forum - Discuss JSE shares and join the Investor Challenge

Did you have to pay any capital gains tax?

I'm seriously looking at ETF's now and that one looks right up my ally. 
How do I go about buying as I can't find it on the JSE?

Found it I think. Moneyweb has it as GDT but it is DIVTRX on the JSE. Is this the correct one as it has only been listed for about 1 year?

Yeah it's DIVTRX. The ETF is new, about a year old, but the index has been around for over 5 years I believe.

Ok, it's been a while since I started thinking of buying a different ETF. At the moment I have a good spread of the Satrix Indi and eRafi Indi. Both of those are heavily weighted in one share, the STX in Naspers and the eRafi in MTN.

Then on another note, I'm kind of in the home stretch to quitting my job, with somewhere between 1 and 5 years to go (obviously depends on many things), and that makes me think a little about dividends. While I know that selling shares is favourable income tax wise if you're a low earner, I do quite like seeing money magically appear in my account as it does with dividends.

So since I'm not clever enough to pick a share, I thought I'd look around and see what ETFs there are that pay reasonable dividends, and hopefully also provide some growth. Ideally they would also not have > 15% in a single share like STXIND and RAFIND do.

So I looked at the Satrix Divi, but it's performance has been pretty terrible over the last while. Growth (including dividends) over 1 year of 5.6%, over 2 years was 8% and over 5 years 12.6%. Not somewhere I want to put any money.

Fortunately last year Grindrod introduced the Dividends Aristocrats ETF. It's based on the S&P SA Dividend Aristocrats index. It's calculated on an equal weighting of companies that have either maintained, or increased their dividends for 5 years running. If you want all the details on how they got there, you can read here: http://www.moneyweb.co.za/archive/not-all-dividend-funds-are-made-equal/

The performance has been great. 29% in 1 year, 23.7% in 3 years and 22.3% in 5 years, including the yield of about 3%.

Here are the shares that make up the index. Initially they were all equally weighted:


But as they are only rebalanced once a year (July), the ratios change as shares increase or decrease in value, so the top 10 right now are:


And the current sector allocation:


And lastly, how the share has compared to the Satrix Indi (Indi in black), remember that you would need to add another 1.6% to the DIVTRX as it had a yield of +- 3% over the indi's +-1.4%:


It's not often I do a comparison chart and see an ETF hovering about the Indi. Any other opinions on this ETF?

I've also only used absa and EE. For me EE is on the money for their target market, novice investors.

Oh dear, poor ellies holders. This competition has a general rule that rights offers MUST be enforced...

if memory serves you are saving up for a sail boat trip around the world?

Yes, I definitely prefer reason 2! I'll either need to work a few more years, or get a smaller boat...


Not mine, yet...

BAT 77.12 cents - LDT: 31 Jul 2015

I'm busy sitting through a presentation from the Standard Chartered South Africa CEO. He's going through the whole of Southern Africa, but I thought I'd post this slide on how he sees South Africa going. The basic view is three tough years, then improvement.