{"id":720538,"date":"2023-09-25T11:00:00","date_gmt":"2023-09-25T09:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=720538"},"modified":"2023-09-22T16:13:12","modified_gmt":"2023-09-22T14:13:12","slug":"r1000-invested-at-the-start-of-the-year-jse-top-40-vs-sp-500","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/720538\/r1000-invested-at-the-start-of-the-year-jse-top-40-vs-sp-500\/","title":{"rendered":"R1,000 invested at the start of the year &#8211; JSE Top 40 vs S&amp;P 500"},"content":{"rendered":"\n<p>A R1,000 investment in the S&amp;P 500 on 1 January 2023 would have grown to R1,291 by 14 September, while the same investment in the JSE Top 40 would have shrunk to R991.<\/p>\n\n\n\n<p>South Africa\u2019s stagnant economy and the rand\u2019s volatility caused many retail investors to reconsider where to invest their money.<\/p>\n\n\n\n<p>Apart from the option to invest in local and international companies on the JSE, people can also invest in exchange-traded funds (ETFs).<\/p>\n\n\n\n<p>ETFs are similar to unit trusts, where money from many investors is pooled. However, instead of being under the control of a fund manager, it tracks a particular index.<\/p>\n\n\n\n<p>Two of the most popular indexes among South African investors are the S&amp;P500 and the JSE Top 40.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>S&amp;P 500&nbsp;<\/strong>\u2013 The Standard and Poor\u2019s 500 tracks the stock performance of 500 of the largest companies listed on US stock exchanges.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>JSE Top 40<\/strong>&nbsp;\u2013 The FTSE\/JSE Top 40 index comprises the 40 biggest companies in the JSE All-Share Index.<\/li>\n<\/ul>\n\n\n\n<p>It raises the question of which index achieved the best return for South African investors in 2023.<\/p>\n\n\n\n<p>An analysis shows that the S&amp;P 500 significantly outperformed the JSE Top 40 between 1 January and 14 September 2023.<\/p>\n\n\n\n<p>A R1,000 investment in the S&amp;P500 would have grown to R1,291 \u2013 a 29.1% increase over the 8-month year-to-date period.<\/p>\n\n\n\n<p>This investment benefitted from the growth in the US market and the weakening of the rand.<\/p>\n\n\n\n<p>Of the 29.1% increase, approximately 11% was attributed to the weakening of the rand and 18% was attributed to the growth in the US stock market.<\/p>\n\n\n\n<p>A R1,000 investment in the JSE Top 40 would have fallen to R991. It translates into a 0.85% loss in the year to date and an annualised loss of 1.2%.<\/p>\n\n\n\n<p>The local market enjoyed a good start to the year, but record load-shedding and aggressive monetary policy tightening hampered growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">JSE Top 40 versus S&amp;P 500<\/h2>\n\n\n\n<p>The chart below shows the performance of R1,000 invested in the<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-luminous-vivid-orange-color\">&nbsp;JSE Top 40<\/mark><\/strong>&nbsp;and&nbsp;<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">S&amp;P 500<\/mark><\/strong>&nbsp;on 1 January 2023.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dailyinvestor.com\/wp-content\/uploads\/2023\/09\/1-8-1024x579.jpg\" alt=\"\" class=\"wp-image-31381\"\/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>This article was first published by&nbsp;<strong><a href=\"https:\/\/dailyinvestor.com\/investing\/31379\/r1000-invested-in-the-jse-top-40-and-sp-500-in-2023-the-winner-is-clear\/\" target=\"_blank\" rel=\"noreferrer noopener\">Daily Investor<\/a><\/strong>&nbsp;and is republished with permission.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/wealth\/710972\/rich-south-africans-are-splashing-their-cash-on-this-luxury-item\/\">Rich South Africans are spending big money on this luxury item<\/a><\/strong><a rel=\"noreferrer noopener\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fdailyinvestor.com%2Finvesting%2F31379%2Fr1000-invested-in-the-jse-top-40-and-sp-500-in-2023-the-winner-is-clear%2F\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/www.twitter.com\/share?text=R1%2C000+invested+in+the+JSE+Top+40+and+S%26P+500+in+2023+%E2%80%93+the+winner+is+clear&amp;url=https%3A%2F%2Fdailyinvestor.com%2Finvesting%2F31379%2Fr1000-invested-in-the-jse-top-40-and-sp-500-in-2023-the-winner-is-clear%2F\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/www.linkedin.com\/shareArticle?mini=true&amp;url=https%3A%2F%2Fdailyinvestor.com%2Finvesting%2F31379%2Fr1000-invested-in-the-jse-top-40-and-sp-500-in-2023-the-winner-is-clear%2F\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/wa.me\/?text=https:\/\/dailyinvestor.com\/investing\/31379\/r1000-invested-in-the-jse-top-40-and-sp-500-in-2023-the-winner-is-clear\/\" rel=\"noreferrer noopener\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The performance of R1,000 invested in the JSE Top 40 and S&#038;P 500 in 2023, and the winner is clear.<\/p>\n","protected":false},"author":93,"featured_media":720550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[10596,18542,709],"class_list":["post-720538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-jse-top-40","tag-sp-500","tag-stocks"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/720538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/93"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=720538"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/720538\/revisions"}],"predecessor-version":[{"id":720676,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/720538\/revisions\/720676"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/720550"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=720538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=720538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=720538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}