Yes, you read that correctly. This is NOT a Satrix Top 40 market update, but rather the first (cue the drumroll) Sygnia Itrix S&P 500 market update from Franc. Every quarter, we’ll be giving you the lowdown on how the companies behind this fund performed, and how that affects the performance of the fund.

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What’s the Sygnia Itrix S&P 500 ETF? This is an ETF listed on the Johannesburg Stock Exchange that follows the movements of the S&P 500 index, which tracks the stock performance of 500 of the largest companies listed in the United States. It’s the Offshore Equity Fund Franc customers can invest in through Franc.

So how did the Sygnia Itrix S&P 500 ETF perform?


At the end of the second quarter of 2024, the Sygnia Itrix S&P 500 closed at R102.31 – a 1.3% increase on the previous quarter (R100.96) and a 3.3% month-on-month increase from the end of May 2024 (R99.00).

Sygnia Itrix S&P 500 selected top performers in Q2 2024

  1. Nvidia Corporation
  2. Apple Inc.
  3. Alphabet Inc. (Google)
  4. Royal Caribbean Group
  5. Tesla Inc.

Nvidia Corporation (Nvidia) is an American multinational corporation and technology company that manufactures GPUs (graphics processing units) and drives advances in AI, gaming, creative design, autonomous vehicles, and robotics. Nvidia increased its quarterly cash dividend by 150%, and reported significant growth in its data centre segment. This growth was driven by increased demand for AI and machine learning applications,​ further strengthening Nvidia’s position in the market. As a result, Nvidia's share price increased by 37% in the second quarter of 2024 as the tech boom continues, driving Nvidia's positive revenue forecast for the third quarter of 2024.

Apple Inc. (Apple)’s share price increased by 23% in the second quarter of 2024 due to several positive developments: the company reported better-than-expected earnings, with revenue slightly above analysts' estimates, particularly in services revenue. These services include iTunes, the company’s online entertainment library, as well as software, digital content, AppleCare, Apple Pay, and licensing. Additionally, Apple announced a substantial share buyback program and a 4% increase in its dividend.

Another tech giant, Alphabet Inc. – Google’s parent company – also saw great success this last quarter. GOOGL shares increased by 20.69% in Q2, while GOOG shares increased by 20.46%. This increase was due to Alphabet’s strong financial performance as revenue exceeded forecasts by 22%. Furthermore, Google implemented a price hike for its Workspace plans, including Business and Enterprise tiers, which came into effect in early 2024. These increases are expected to bolster Google's revenue from its cloud services and productivity tools​​. Continued investment and advancements in artificial intelligence (AI) and cloud computing have strengthened Google's market position.

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Alphabet Inc. has two listed share classes that are slightly different: GOOGL and GOOG shares. GOOGL shares are its Class A shares, also known as common stock, which have the typical one-share, one-vote structure. GOOG shares are Class C shares that confer no voting rights. Because GOOGL shares have voting rights, and because these rights have some value, they often trade at a slight premium. In reality, however, GOOG and GOOGL often trade for around the same price.

Tesla Inc.’s share price increased by 13% in the second quarter of 2024. This increase was due to various factors, including an increase in the number of deliveries and production of their vehicles, boosting investor confidence. Tesla's energy division also performed exceptionally well, deploying a record number of battery storage products in 2024. Tesla did experience backlash for controversial labour issues, though.

Another company making waves this last quarter was Royal Caribbean Group, the world's second-largest cruise line operator, as their share price increased by 15% in Q2 2024. This was due to strong financial performance as the company reported an increase in earnings per share (EPS) that surpassed expectations. Increased customer deposits and strong booking trends for future cruises due to the recent launch of their largest cruise ship (and largest in the world), Icon of the Seas, indicated sustained demand, boosting investor confidence​.

Sygnia Itrix S&P 500 selected bottom performers in Q2 2024

  1. The Estée Lauder Companies Inc.
  2. American Airlines Group Inc.
  3. Nike Inc.
  4. The Walt Disney Company
  5. Starbucks Corporation

One of the biggest losers this quarter was The Estée Lauder Companies Inc., the multinational cosmetics company, as their share price decreased by 31% in Q2 2024. This was due to the company reporting a 7% decline in sales compared to the same period last year, and a 20% reduction in earnings in the space of a year. This was mainly due to slower-than-expected growth in key markets, particularly China​.

Another big loser this quarter was Nike Inc., whose share price decreased by 20% in the second quarter of 2024 as a result of a slight decline in revenue for 2024 so far. This decline was partly due to challenges in key markets like North America and China​, where Nike faced macroeconomic headwinds and poor sales performance. The company's revenue in North America, one of its largest markets, for example, saw a 5% decline in footwear sales. Nike's future guidance was less optimistic, projecting a 5% decline in full-year revenue. This cautious outlook certainly wasn’t a tick in the box for investors.

The Walt Disney Company’s share price decreased by 19% in Q2 2024 due to several factors. Disney reported significant restructuring and impairment charges, impacting its profitability and investor sentiment. The entertainment and media landscape is highly competitive, and Disney faced pressures in content creation and acquisition, which affected its operational efficiency and market performance​. Furthermore, the company's net income dropped dramatically. This decline was attributed to higher costs, the aforementioned restructuring charges and increased unsubscriptions of Disney’s streaming platform, Disney+ – a product that used to be its prince charming, but has now become its ugly duckling.

Another company needing a caffeine pick-me-up is Starbucks Corporation. Their share price decreased by 15% in Q2 2024 due to lower-than-expected reported EPS and revenue​. Starbucks attributes the challenges to a complex operating environment, which included inflationary pressures and shifts in consumer spending patterns, making it difficult for the company to achieve its financial targets and maintain its growth trajectory​.

Another company making their descent was American Airlines Group Inc. as their share price decreased by 26% in Q2 2024. The airline reduced its guidance for the quarter, anticipating a 5-6% decline in revenue compared to its earlier forecast of a 1-3% decrease. This adjustment led to a downward revision in their expected EPS. To top it off, the sudden departure of their Chief Commercial Officer added to investor concerns, as it indicated potential instability within the company’s leadership​.

Offshore for sure?

The Sygnia Itrix S&P 500 gives investors exposure to the US market and is a great way to diversify your investment portfolio. Despite the mixed results, the Sygnia Itrix S&P 500 finished up the second quarter of 2024 with a robust performance (+15%) YTD, reflecting both resilience and adaptability in a dynamic economic environment. So what are you waiting for? If you are looking to invest long term, this is your one way ticket to the United States – no visa required.