InvestSMART Performance Update: March 2024
The InvestSMART diversified ETF portfolios returned between 7.1% and 18.6% in the 12 months to 31 March 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 between 2.9% and 9.3%, outperforming the majority of their peer funds as you can see from the chart below. Our Growth portfolio, for example, has returned 7.1%p.a. over five years. The average annualised return of other funds categorised as 'growth' was 4.7% over the same period.
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The InvestSMART single asset portfolios returned between 3.7% (Cash Securities) and 27.7% (International Equities) in the 12 months to 31 March 2024 and between 1.2% and 13.1% on average over five years.
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March wrap up
The first quarter of 2024 was all about growth, particularly in the US tech sector. Global share markets had their best quarter in five years, driven by AI expectations and strong corporate earnings.
Australian shares closed Q1 at record highs, despite analyst fears of a slowing economy. The Aussie tech sector was a bright spot, up an impressive 24.2% for the quarter, however, miners fell 7.9% as iron ore and lithium prices suffered under supply challenges from international competitors.
Bonds stagnated in the first quarter of the year. Although inflation has eased, it remains stickier than economists would like, which has dragged on both local and global bond performance as predicted interest rate cuts have not materialised.
Sector highs and lows
Looking at sector highs and lows serves as a useful reminder of the value of broad-based 'vanilla' ETFs and why they are our chosen investment vehicle. Predicting which sector will outperform is incredibly difficult, and staying informed about industry-specific issues can be a tall order. For example: not long ago Australian lithium miners were posting huge returns, but as mentioned above, the mining sector is down. By holding a diversified basket of shares in an ETF, InvestSMART clients benefit from strong-performing sectors, while mitigating exposure to those that are struggling.
View full portfolio performance report here.
Frequently Asked Questions about this Article…
InvestSMART's diversified ETF portfolios returned between 7.1% and 18.6% in the 12 months to 31 March 2024, outperforming traditional bank savings accounts and term deposits.
Over the past five years, InvestSMART's Growth portfolio achieved an average annual return of 7.1%, outperforming the average annualised return of 4.7% for other funds in the 'growth' category.
In the 12 months to 31 March 2024, InvestSMART's single asset portfolios returned between 3.7% for Cash Securities and 27.7% for International Equities.
InvestSMART favors broad-based 'vanilla' ETFs because they provide diversification, allowing investors to benefit from strong-performing sectors while reducing exposure to struggling ones, making it easier to navigate unpredictable market conditions.
The Australian tech sector was a standout performer in Q1 2024, rising an impressive 24.2% despite concerns about a slowing economy.
In the first quarter of 2024, the mining sector faced challenges due to falling iron ore and lithium prices, resulting in a 7.9% decline, influenced by supply issues from international competitors.
Global share markets experienced their best quarter in five years during Q1 2024, driven by strong corporate earnings and high expectations for AI advancements.
Despite easing inflation, it remained stickier than expected, which negatively impacted both local and global bond performance as anticipated interest rate cuts did not occur.
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