InvestSMART's Performance for the month of July

The InvestSMART diversified portfolios delivered between 2.08% - 12.11% positive returns for clients to 31 July 2023. The robust recovery in the technology sector driven by Meta, Nvidia, Tesla, Apple, Microsoft, Alphabet and Amazon (aka: the magnificent seven) has been a large contributor to international outperformance this year.

By Mitchell Sneddon ·
15 Aug 2023 · 5 min read

Diversified ETF Portfolios

Investors looking for a mix of asset classes in one portfolio.

Portfolio	Description	More Info
Conservative Portfolio	Designed for investors looking for a better return than cash or saving for the short-term.	More info
Balanced Portfolio	Designed for investors who seek a balanced investment solution between defensive & growth assets.	More info
Growth Portfolio	Designed for investors who are looking to build their wealth over the medium-term.	More info
High Growth Portfolio	Designed for investors who are looking to build their wealth over the longer-term.	More info
Ethical Growth Portfolio	A simple, cost-effective way to invest in a diversified ethical portfolio without the usual high fees	More info

Single Asset Class ETF Portfolios

Investors looking to gain access to a sector specific asset class.

Portfolio	Description	More Info
International Equities Portfolio	Designed to provide investors the ability to tap into the high potential growth of global markets and aid in portfolio diversification.	More info
Property and Infrastructure Portfolio	Designed for investors looking to diversify their property exposure or tap into the income & capital growth potential from the commercial property market generally inaccessible to the public.	More info
Hybrid Income Portfolio	Designed for investors an opportunity to diversify their income stream, with a portfolio of predominantly ASX-listed hybrid securities.	More info

International markets continue to rally

The InvestSMART diversified portfolios delivered between 2.08% - 12.11% positive returns for clients to 31 July 2023. As we mentioned last month the robust recovery in the technology sector driven by Meta, Nvidia, Tesla, Apple, Microsoft, Alphabet and Amazon (aka: the magnificent seven) has been a large contributor to international outperformance this year.

Is it an AI bubble? Maybe, possibly, who knows

What matters is that you don’t try to time the market and call the top of the AI boom. Instead, if you remain diversified and focused on the long-term, when one part of the global economy is firing, you have exposure to it. One of the benefits of owning an InvestSMART diversified portfolio is that you have exposure to a variety of different asset classes and regions. This helps to reduce your risk and can help you to achieve your long-term financial goals.

Why our chosen international ETF is VGS

The Vangard Msci International shares ETF (VGS), provides exposure to over 1,000 companies in 23 countries across North America, Europe, and Asia. This means that you're not just betting on the US or the aforementioned "Magnificent Seven" stocks. You're also getting exposure to the growth potential of other countries and regions.

An update on InvestSMART Ethical Growth Portfolio

Following a periodic review of the InvestSMART Ethical Growth Portfolio by the Investment Committee, it was decided that the iShares Core Composite Bond ETF (IAF) is to be replaced by the BetaShares Sustainability Leaders Diversified Bond ETF (GBND).

This switch is important to us because it furthers our Ethical Growth Portfolio mandate to seek diversified, ethical, growth investments while adopting a passive approach. All ETFs held within the Ethical Growth Portfolio are now RIAA certified.