InvestSMART Performance Update: December 2024

InvestSMART's diversified ETF portfolios continue to produce great results, returning between 7.2% and 18.5% in the 12 months to the end of December 2024. Our low fees and use of broad-based passive ETFs have allowed us to outperform the majority of our competitors over the long term. Of course, past performance is not an indication of future performance. 

Over five years the diversified portfolios have delivered annual returns of between 2.7% and 8.9% on average. The table below illustrates how InvestSMART's portfolios compare to funds in the same risk category over five years. As you can see, our High Growth portfolio has returned 8.9% a year over five years, outperforming similar options by an average of 2.6% over that period.

InvestSMART's single-asset portfolios returned between 4.0% (cash securities) and 30.2% (international equities) in the 12 months to the end of December 2024, and between 1.6%p.a. and 13.1%p.a. over five years.

December wrap up

Most share markets fell in the last month of 2024. The S&P/ASX 200 was down 3.2%, wiping out most of the 3.8% gains made in November. US stocks also took a tumble, with the S&P 500 falling by 2.4%, and global equities fared much the same. The MSCI World ex-Australia index was down 2.7% over the month.

Japanese stocks and emerging markets had a better month, both finishing December higher.

Overall, 2024 was a strong year for equities. Despite a couple of excellent years in financial markets, however, the new year brings as much uncertainty as any year in recent memory. Experts are divided on whether the current bull market will continue or if a pullback is inevitable.

One thing is certain: the best preparation for 2025 is a portfolio that is widely diversified across stocks and asset classes. This, combined with long-term investing, will help investors reduce risk and achieve healthy long-term returns.