July 2023 Performance Update

InvestSMART diversified portfolios positive returns | AI bubble or boom | Change to ethical portfolios

By InvestSMART · 23 Aug 2023

By InvestSMART ·
23 Aug 2023 · 5 min read

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.

View latest reports:

InvestSMART conservative portfolio

InvestSMART balanced portfolio

InvestSMART growth portfolio

InvestSMART ethical growth portfolio

InvestSMART high growth portfolio

Why our chosen international ETF is VGS

The Vanguard 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.