InvestSMART Performance Update: February 2024
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.
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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.
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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%.
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February wrap up
Australian and international equities continued their upward trend in February, driven by:
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Signs of global economic resilience and growth
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Better-than-expected corporate earnings
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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.
Frequently Asked Questions about this Article…
InvestSMART's diversified ETF portfolios returned between 6.8% and 16.0% in the 12 months leading up to February 2024, outperforming traditional bank savings accounts and term deposits.
Over five years, InvestSMART's portfolios have returned an average of 2.9% to 8.9%, outperforming similar peer funds by an average annualised return of 1.9% to 3.2%.
The High Growth portfolio from InvestSMART returned an average of 8.9% over the past five years, compared to the 5.7% average annualised return of other high growth funds.
The InvestSMART Single Asset ETF Portfolios returned from 2.7% (Property & Infrastructure) to 26.2% (International ETFs) in the 12 months to February 2024.
The upward trend in equities was driven by signs of global economic resilience, better-than-expected corporate earnings, and anticipation of potential interest rate cuts.
Despite limited technology exposure in the ASX, the Australian information technology sector was the best performing, up 19%, partly due to the 'halo effect' of US stock popularity.
InvestSMART investors can benefit from technology equity returns through the Vanguard MSCI Index International Shares ETF (VGS), which grew by 5.93% in February 2024.
Nvidia experienced a 29% jump in February, highlighting the global demand for AI chips and the immense potential of the technology, which investors can access through broad-based ETFs.
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