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- Still think offshore is always better?
Still think offshore is always better?
PLUS: You might soon own SpaceX. Explainer video and more!
FinMeUp
June 24, 2026
A note from us to you
Most South Africans assume that if you want real returns, you need to be invested offshore. The NASDAQ. The S&P 500. US tech. Anything but here.
But over the last 25 years, South African equities have outperformed the US, EU, and UK markets - measured in dollars. Not rands. Dollars.
The annualised returns (in ZAR) tell the story clearly:
1 year: SA equity 39.58% vs US equity -0.25%
5 year: SA equity 16.35% vs US equity 15.40%
10 year: SA equity 10.89% vs US equity 15.55%
25 year: SA equity 13.57% vs US equity 12.36%
The rand-depreciates-to-zero narrative is a powerful one. But here's something I find interesting: 10 years ago when I did my MBA, the rand was R16 to the dollar and R19.50 to the euro. Today? Roughly the same.
That doesn't mean go all-in local. It means the story is more nuanced than the headlines suggest - and that's exactly the kind of conversation I think every South African investor should be having with their adviser.
[Investec Macro Monday - Christopher Holdsworth]
HARD FINANCIAL CONTENT - What is an ETF, and why does SpaceX suddenly matter to you?
Unless you've been off the grid, you've probably heard that SpaceX has IPO’ed on the NASDAQ stock exchange. But here's what most people miss: if you own certain index funds or ETFs, you may soon own a slice of SpaceX - without ever choosing to buy it.
Here's how it works.
An ETF (Exchange Traded Fund) is a basket of shares that tracks an index - like the S&P 500 or the NASDAQ. When a company gets added to that index, every fund that tracks it has to go buy that stock. Automatically. That's not a choice the fund manager makes - it's built into how the product works.
The S&P 500 has strict rules: a company needs to have been listed for at least 12 months and must be profitable before it qualifies for inclusion. SpaceX doesn't currently meet those criteria, so if you own an S&P 500 ETF, SpaceX is not in your portfolio.
The NASDAQ changed its rules - reportedly allowing SpaceX to be included within approximately 15 days of listing. That's a significant rule change, and it was made specifically to accommodate one of the world's largest private companies going public.
The result: if you own a NASDAQ-tracking ETF like QQQ or a Vanguard NASDAQ product, you are now - or will shortly be - a SpaceX shareholder. SpaceX is the 4th largest company in the world by valuation.
Why does this matter? Because most retail investors don't know what's inside their ETFs. They just own "the index." Understanding what you own, and why it changes, is the difference between passive investing and informed passive investing.
What do you currently invest in? |
MARKET COMMENTARY - What's moving right now
Global markets are navigating a complicated environment. Geopolitical tensions - particularly in the Middle East following hostilities around the Strait of Hormuz earlier this year - rattled energy prices and introduced volatility across equity markets in the first half of 2026.
But SA has held up. The rand has shown relative stability, and SA equities have continued to attract attention as the local market still trades at a discount to many global peers despite recent outperformance.
For South African investors, the practical takeaway is this: global diversification is still important, but "offshore is always better" is a lazy assumption worth challenging. The best portfolios aren't built on assumptions - they're built on data.
As always, if you want to talk through what this means for your specific situation, our advisers are here.
LATEST REEL - Now Live!
Could you become a SpaceX shareholder without buying SpaceX directly?
In our latest Instagram Reel, we break down how index investing works, why Nasdaq’s rules matter, and how your ETF could give you exposure to companies like SpaceX.
Note: This newsletter is for informational purposes only and does not constitute financial advice. For personalised financial advice, you can book to speak to a financial advisor here (powered by a registered FSP: No. 51310).
Your money matters. Make it count.
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