The Ashburton Global 1200 ETF provides investors with efficient exposure to the global equity market by tracking the S&P Global 1200. The S&P Global 1200 index captures ~70% of the world market cap, covering seven distinct regions and 30 countries. It is constructed as a composite of seven headline indices, many of which are accepted leaders in their regions. These include the S&P500 (US), S&P Europe 350, S&P TOPIX 150 (Japan), S&P/TSX 60 (Canada), S&P/ASX All Australian 50, S&P Asia 50 and S&P Latin America 40. Each stock in the index must meet liquidity standards and each component region has appropriate sector representation. The size of each region corresponds to its relative size in the global equity market, based on a float-adjusted market value.
The portfolio tracks a diversified equity index and thus exhibits a high-risk profile that aims to deliver capital growth over the long term (beyond 5 years). The ETF replicates the benchmark index by holding a diversified portfolio of global equities. Whilst there may be some capital volatility in the short term, higher returns are likely to materialise over five years or more.
- Diversification: This fund will provide the investor with diversification in an investment portfolio, both from a currency and geographic perspective. This will have an impact on both risk and return.
- The S&P Global 1200 index has a large interest in developed markets, which is currently experiencing reasonable economic growth.
- The S&P Global 1200 Index boasts exposure to some of the largest and well-respected companies globally.
- The underlying constituents are mostly large cap, defensive counters with limited liquidity constraints.
- Low concentration risk – the top 10 constituents only make up ~10% of the index (1219 constituents).
- No securities transfer tax is payable on the purchase of ETFs. Passive investments are regarded as a cost effective investment option.
- The ETF is not a typical feeder fund as it will hold underlying physical equities.
- First listed ETF to track the S&P Global 1200 equity index worldwide.
- Local investors will not have to use their offshore allowance to gain further access to markets ex-SA.
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Annualised performance since 2017:
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