InvestSMART Performance Update: February 2024

Technology leads the charge... again
By · 18 Mar 2024
By ·
18 Mar 2024 · 5 min read
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The InvestSMART diversified ETF portfolios returned from 6.8% to 16.0% in the 12 months to 29 February 2024. All our portfolios, whether you choose to invest in our Conservative portfolio through to our High Growth portfolio, would have provided better returns than a bank savings account and term deposits over the same period.   

Over five years the portfolios have returned on average 2.9% to 8.9%, outperforming similar peer funds by an average annualised return of 1.9% to 3.2%. Our High Growth portfolio, for example, has returned on average 8.9% over five years. The average annualised return of other funds categorised as 'high growth' was 5.7% over the same period.

This outperformance is by design, not chance. 

The five InvestSMART Single Asset ETF Portfolios returned from 2.7% (Property & Infrastructure) to 26.2% (International ETFs) in the 12 months to 29 February, and over a five-year period returned from 1.2% to 12.7%. 

February wrap up

Australian and international equities continued their upward trend in February, driven by: 

  • Signs of global economic resilience and growth 

  • Better-than-expected corporate earnings 

  • Anticipation of potential interest rate cuts 

US shares continued their rally with growth concentrated in the magnificent seven technology stocks. Australian shares followed US markets and closed at record highs in February. Notably, despite limited technology exposure in the ASX, the information technology sector was the best performing, up 19%. Some analysts partly attribute this rise to the ‘halo effect’ of US stock popularity. 

While investing directly into individual companies isn't our focus, investing in broad based ETFs still gains exposure to stocks like Nvidia, which had an impressive 29% jump in February, highlighting the global demand for AI chips and the immense potential of the technology. 

Through the Vanguard MSCI Index International Shares ETF (VGS) included in our diversified portfolios, InvestSMART investors benefit from technology equity returns. VGS grew by 5.93% in February 2024. 

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