InvestSMART's Performance for the June quarter

A strong twelve months for the InvestSMART Diversified Portfolios

By Mitchell Sneddon · 17 Jul 2023

By Mitchell Sneddon ·
17 Jul 2023 · 5 min read

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Diversified ETF Portfolios

Investors looking for a mix of asset classes in one portfolio.

Portfolio	Description	More Info
Conservative Portfolio	Designed for investors looking for a better return than cash or saving for the short-term.	More info
Balanced Portfolio	Designed for investors who seek a balanced investment solution between defensive & growth assets.	More info
Growth Portfolio	Designed for investors who are looking to build their wealth over the medium-term.	More info
High Growth Portfolio	Designed for investors who are looking to build their wealth over the longer-term.	More info
Ethical Growth Portfolio	A simple, cost-effective way to invest in a diversified ethical portfolio without the usual high fees	More info

Single Asset Class ETF Portfolios

Investors looking to gain access to a sector specific asset class.

Portfolio	Description	More Info
International Equities Portfolio	Designed to provide investors the ability to tap into the high potential growth of global markets and aid in portfolio diversification.	More info
Property and Infrastructure Portfolio	Designed for investors looking to diversify their property exposure or tap into the income & capital growth potential from the commercial property market generally inaccessible to the public.	More info
Hybrid Income Portfolio	Designed for investors an opportunity to diversify their income stream, with a portfolio of predominantly ASX-listed hybrid securities.	More info

Outstanding results, what a difference a year makes:

Following a turbulent year, the InvestSMART diversified portfolios rose in the 2023 financial year delivering between 4.36% - 14.64% positive returns.

These results once again show why investing with a short-term mindset will lead to missed opportunities. Research consistently shows that investors who stay the course and invest for the long term will achieve greater returns than the crowd.

Investment returns in the portfolios

International and Australian equities led gains across the InvestSMART diversified portfolios. Following a difficult financial year for both asset classes in 2022, financial year 2023 has been like night and day.

ASX:VGS returned 22.65%, with the US, Japan and European equities all contributing to the gains. The AI ‘revolution’ was a massive factor, with strong performance from major stocks such as Apple, Microsoft, Meta (Facebook) and now Nvidia.

Like its international peers, the ASX 200 looked through concerns around higher rates, high inflation and household pressures. In FY22 Australian shares (represented by ASX:IOZ) fell 6.16%, in FY23 Australian shares rose 14.2%. Growth sectors were responsible for the strong results, with IT and materials the standouts.

It is prudent to point out that FY24, international and Australian equities still face the concerns that plagued 2023. Furthermore, these returns are atypical – the average return since inception for VGS is 12.3% and IOZ is 7.8%.

The key takeaway message for investors is: You can’t predict what markets will do from year-to-year. Selling when markets are low because of loss aversion means you’ll almost certainly miss out on great returns in the future.

The best thing you can do is invest with your long-term goals in mind, stay diversified, keep your fees low and invest regularly.

One of the main reasons InvestSMART consistently outperforms most of our peers is because of our low fees of 0.55% capped* at $550 p.a no matter how much money you invest.

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For more information on the companies discussed in this article, please click on the company of interest... BetaShares Australian High Interest Cash ETF (AAA) | SPDR Dow Jones Global Real Estate ESG Fund (DJRE) | iShares Asia 50 ETF (IAA) | VanEck FTSE Global Infrastructure (Hedged) ETF (IFRA) | Ishares Treasury ETF (IGB) | iShares Core S&P/ASX 200 ETF (IOZ) | iShares S&P 500 ETF (IVV) | BetaShares S&P 500 Yield Maximiser Fund (UMAX) | Vanguard Australian Property Securities Index ETF (VAP) | Vanguard Global Aggregate Bond Index (Hedged) ETF (VBND) | Vanguard FTSE Europe Shares ETF (VEQ) | Vanguard Australian Government Bond Index ETF (VGB) | Vanguard MSCI Index International Shares ETF (VGS)

Frequently Asked Questions about this Article…

What are the benefits of investing in diversified ETF portfolios?

Diversified ETF portfolios offer a mix of asset classes, providing a balanced investment solution that can help manage risk and potentially enhance returns. They are designed for investors with different goals, from conservative to high growth, and can be a cost-effective way to achieve diversification.

How did InvestSMART's diversified portfolios perform in the 2023 financial year?

InvestSMART's diversified portfolios delivered positive returns ranging from 4.36% to 14.64% in the 2023 financial year. This performance highlights the benefits of long-term investing and staying the course despite market volatility.

What factors contributed to the strong performance of international equities in FY23?

International equities, particularly those in the US, Japan, and Europe, saw strong performance due to the AI 'revolution' and significant gains from major stocks like Apple, Microsoft, Meta, and Nvidia.

Why is it important to invest with a long-term mindset?

Investing with a long-term mindset is crucial because it helps investors avoid the pitfalls of market timing and loss aversion. Staying invested through market fluctuations can lead to greater returns over time, as evidenced by the strong performance of diversified portfolios in FY23.

What are the key sectors driving growth in the Australian equities market?

In FY23, growth sectors such as IT and materials were the standout performers in the Australian equities market, contributing to a 14.2% rise in ASX 200 shares despite previous concerns about higher rates and inflation.

How does InvestSMART keep investment fees low?

InvestSMART maintains low investment fees by capping them at 0.55%, with a maximum of $550 per annum, regardless of the investment amount. This approach helps investors keep more of their returns.

What is the average return since inception for VGS and IOZ?

Since inception, the Vanguard MSCI Index International Shares ETF (ASX:VGS) has an average return of 12.3%, while the iShares Core S&P/ASX 200 ETF (ASX:IOZ) has an average return of 7.8%.

Why should investors consider ethical growth portfolios?

Ethical growth portfolios offer a way to invest in a diversified portfolio that aligns with ethical values, often without the high fees typically associated with ethical investing. They provide a cost-effective solution for investors looking to make a positive impact while achieving their financial goals.