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Home › Satrix Top 40 South Africa 2026

Satrix Top 40 ETF — South Africa's Most Popular ETF Explained

What the Satrix Top 40 tracks, its historical returns, TER, the top holdings, and how to buy it in your TFSA or taxable account.

TER

~0.10% p.a.

Tracks

JSE Top 40

Min buy (EasyEquities)

R50

10-yr nominal return

~12–15% p.a.

Satrix Top 40 ETF — Key Facts 2026

DetailInformation
Full nameSatrix Top 40 ETF
JSE codeSTX40
Index trackedFTSE/JSE Top 40 Index
TER (Total Expense Ratio)~0.10% per annum
Dividend distributionSemi-annual
CurrencySouth African Rand (ZAR)
Where to buyEasyEquities, Satrix Invest, any JSE broker
Available in TFSA?Yes

Top 10 Holdings — Satrix Top 40 (Approximate 2026 Weights)

CompanyApprox WeightSector
Naspers / Prosus~18–22%Technology / E-commerce
Standard Bank~5–7%Financial services
FirstRand~4–6%Financial services
Richemont~4–5%Luxury goods
Anglo American~3–5%Mining
British American Tobacco SA~3–4%Consumer goods
Glencore~3–4%Mining / Commodities
MTN Group~2–4%Telecommunications
Absa Group~2–3%Financial services
Sanlam~2–3%Insurance

The Case For and Against the Satrix Top 40

The case for is simple: it's cheap, it's liquid, it's transparent, and it gives you ownership of South Africa's 40 largest, most established companies in one transaction. The TER of 0.10% is exceptional — you keep 99.9% of your return annually. And because the JSE Top 40 is a market-cap-weighted index, it automatically rebalances as company sizes change — you don't need to do anything.

The case against is equally simple: Naspers/Prosus domination. When a single holding represents 18–22% of an index supposedly covering 40 companies, your diversification is significantly compromised. The Top 40 also excludes mid- and small-cap South African companies (the Satrix Swix or Satrix Divi ETFs provide different exposures). And 100% JSE concentration means zero protection against a broad South African market downturn.

For most South African investors building a core portfolio, the Satrix Top 40 is an excellent core SA equity holding — but it should be one component of a broader portfolio, not the entire portfolio. Pairing it with global exposure (Satrix MSCI World, CoreShares S&P 500) and possibly some fixed income creates a more resilient long-term investment.

How to Buy the Satrix Top 40 in Your TFSA — Step by Step

The most tax-efficient way to hold the Satrix Top 40 is inside your TFSA. All dividends and capital gains within the TFSA are tax-free. On EasyEquities: log in, select 'Tax-Free Account,' search for 'STX40,' enter your amount, and confirm. EasyEquities allows fractional investing — R100 buys you a fraction of one unit. Transaction cost: 0.25% + STT on buys.

On Satrix Invest (satrixinvest.co.za): open a TFSA account, choose Satrix Top 40, set up a monthly debit order from R500. Satrix Invest charges no brokerage — you pay only the TER embedded in the fund. The platform fee structure differs from EasyEquities, so compare for your contribution size.

For most beginners making monthly contributions of R500–R2,000, the convenience and flexibility of EasyEquities slightly edges out Satrix Invest. For larger, less frequent investments, the fee structure comparison is worth doing — Satrix's no-brokerage model can be cheaper at higher transaction amounts.

Frequently Asked Questions

The Satrix Top 40 ETF tracks the FTSE/JSE Top 40 Index — the 40 largest companies listed on the Johannesburg Stock Exchange by market capitalisation. It's a market-cap-weighted index, meaning larger companies have a bigger share of the ETF. It is the most traded ETF in South Africa and serves as the benchmark for the local equity market.
The top holdings are dominated by Naspers/Prosus (tech and e-commerce, often 20%+ of the index), Standard Bank, FirstRand, Anglo American, Richemont, British American Tobacco (SA-listed), Glencore, and MTN. This concentration in a few stocks — especially Naspers — is one criticism of the index. One company's movement can significantly swing the whole ETF.
The Total Expense Ratio (TER) of the Satrix Top 40 is approximately 0.10% per annum — one of the lowest TERs in South Africa. On a R100,000 investment, you pay R100/year in fund costs. This compares extremely favourably with actively managed South African equity unit trusts, which typically charge 1–2% per year.
The FTSE/JSE Top 40 has delivered average annual returns of approximately 12–15% over long periods in nominal (nominal = before inflation) rand terms. Real returns (after CPI inflation of 5–6%) have been 6–9% per annum over most 10-year periods. Past performance does not guarantee future returns, and there have been periods of flat or negative returns over shorter periods.
It's a strong starting point, but not ideal as a sole holding for two reasons: concentration risk (the index is heavily weighted toward a small number of companies, especially Naspers/Prosus) and geographic concentration (100% South Africa, which means 100% rand risk and SA economic risk). Most advisors recommend pairing the Satrix Top 40 with a global ETF like Satrix MSCI World for a more diversified portfolio.

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Disclaimer: This page is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional before making financial decisions.

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