BETTER TO OPT FOR EQUALWEIGHTED INDICES
Stanprop, the Stanlib property exchange-traded fund (ETF), published a Sens on the rebalanced portfolio. The ETF tracks the SA Listed Property (SAPY) Index so it’s just rebalancing to remain in sync with the index. But what struck me was that, being a market cap index, just three stocks – Growthpoint, Hyprop and Redefine – make up over 47% of the SAPY’s 22 stocks. This is why I far prefer equal-weighted indices and in the property space we have CoreShares PropTrax Ten (PTXTEN)*, which includes the 10 largest property stocks at 10% weighting each.