Investing in an S&P 500 tracker provides diversification across 500 large US companies, low costs, tax efficiency, and potential for long-term growth.
Overall, it's our favourite option for investors seeking broad exposure to the US stock market with controlled costs and potential for steady returns.
Investing in offshore companies that generate income in stronger currencies serves as a hedge against Rand depreciation, mitigating the impact of political or market risks specific to South Africa.
Moreover, for entities constrained by South Africa's exchange control regulations, which forbid or limit the amount of money that can be taken offshore, investing in an S&P 500 tracker offers an attractive avenue for accessing international markets.