InvestSMART Performance Update: May 2026
InvestSMART's diversified ETF portfolios have delivered solid results over the past year, returning between 4.2% and 9.7% in the 12 months to the end of May 2026. Over 10 years, they have returned between 3.9% and 9.2% a year on average. Keep in mind that past performance is not a reliable indication of future performance.
The chart below shows how InvestSMART's diversified portfolios have performed compared to funds in the same risk category over the five years to 31 May 2026.
As you can see, they have delivered annual returns of between 3.3% and 9.1% on average, outperforming competitor funds by an average annualised return of between 0.2% and 1.5%.
InvestSMART's single-asset portfolios returned between 0.7% (Australian Bonds) and 16.3% (International Equities) in the 12 months to the end of May 2026, and between 0.8% p.a. (Australian Bonds) and 12.4% p.a. (International Equities) over 10 years.
May wrap-up
May was a good month for markets, although some performed better than others. The S&P/ASX 200 rose 1.1%, with a lot of the heavy lifting done by mining stocks as iron ore and copper prices moved higher. Other parts of the market had a tougher time, including healthcare, utilities, energy and communication services.
Overseas markets had a stronger month overall, helped by continued strength in AI-related shares and a strong US earnings season. Both the S&P 500 and Nasdaq reached fresh highs - up 5.3% and 8.4% respectively in May - while Japan and broader Asia also performed well.
The gap between local and global markets is a good reminder of why diversification matters. Different sectors, regions and asset classes can perform very differently at various points in the cycle. That came through clearly in May, with resources driving returns in Australia while technology and AI-related companies led gains overseas. Diversification means you don't have to guess which part of the market will perform best next.
With the second half of the year approaching, now is a good time to check your strategy and make sure it still lines up with your goals.
Frequently Asked Questions about this Article…
InvestSMART's diversified ETF portfolios returned between 4.2% and 9.7% in the 12 months to the end of May 2026. As the article notes, past performance is not a reliable indication of future performance.
Over 10 years the diversified portfolios returned between 3.9% and 9.2% per year on average. Over the five years to 31 May 2026 they delivered annual returns of between 3.3% and 9.1%, outperforming funds in the same risk category by an average annualised margin of about 0.2% to 1.5%.
InvestSMART's single-asset portfolios returned between 0.7% (Australian Bonds) and 16.3% (International Equities) in the 12 months to the end of May 2026. Over 10 years the range was about 0.8% p.a. (Australian Bonds) to 12.4% p.a. (International Equities).
May 2026 was generally a good month: the S&P/ASX 200 rose 1.1%, driven largely by mining stocks as iron ore and copper prices climbed. Overseas markets were stronger overall, with the S&P 500 up 5.3% and the Nasdaq up 8.4% in May, helped by strength in AI-related shares and a strong US earnings season. Japan and broader Asia also performed well.
The article highlights that different regions and sectors led returns: resources (mining) boosted the Australian market while technology and AI-related companies led gains overseas. That divergence is why diversification across regions and asset classes can matter for investors.
In May 2026 some parts of the market had a tougher time, including healthcare, utilities, energy and communication services, while resources and AI-related technology shares outperformed.
InvestSMART emphasizes that diversification matters because different sectors, regions and asset classes can perform very differently at various points in the market cycle. Diversification means you don't have to guess which part of the market will perform best next.
The article suggests it's a good time to check your strategy and make sure it still lines up with your goals as the second half of the year approaches. That doesn't mean a specific buy or sell action—just review your goals, risk tolerance and whether your portfolio remains diversified. Remember: past performance is not a reliable indication of future performance.
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