July 2023 Performance Update
International markets continue to rally
The InvestSMART diversified portfolios delivered between 2.08% - 12.11% positive returns for clients to 31 July 2023. As we mentioned last month the robust recovery in the technology sector driven by Meta, Nvidia, Tesla, Apple, Microsoft, Alphabet and Amazon (aka: the magnificent seven) has been a large contributor to international outperformance this year.
Is it an AI bubble? Maybe, possibly, who knows...
What matters is that you don’t try to time the market and call the top of the AI boom. Instead, if you remain diversified and focused on the long-term, when one part of the global economy is firing, you have exposure to it.
One of the benefits of owning an InvestSMART diversified portfolio is that you have exposure to a variety of different asset classes and regions. This helps to reduce your risk and can help you to achieve your long-term financial goals.
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InvestSMART conservative portfolio
InvestSMART balanced portfolio
InvestSMART ethical growth portfolio
InvestSMART high growth portfolio
Why our chosen international ETF is VGS
The Vanguard Msci International shares ETF (VGS), provides exposure to over 1,000 companies in 23 countries across North America, Europe, and Asia. This means that you're not just betting on the US or the aforementioned "Magnificent Seven" stocks. You're also getting exposure to the growth potential of other countries and regions.
An update on InvestSMART Ethical Growth Portfolio
Following a periodic review of the InvestSMART Ethical Growth Portfolio by the Investment Committee, it was decided that the iShares Core Composite Bond ETF (IAF) is to be replaced by the BetaShares Sustainability Leaders Diversified Bond ETF (GBND).
This switch is important to us because it furthers our Ethical Growth Portfolio mandate to seek diversified, ethical, growth investments while adopting a passive approach. All ETFs held within the Ethical Growth Portfolio are now RIAA certified.
Frequently Asked Questions about this Article…
InvestSMART diversified portfolios delivered positive returns ranging from 2.08% to 12.11% for clients by July 31, 2023, thanks to a robust recovery in the technology sector.
The Vanguard MSCI Index International Shares ETF (ASX:VGS) offers exposure to over 1,000 companies across 23 countries, providing investors with diversified international growth opportunities beyond just the US market.
The iShares Core Composite Bond ETF (ASX:IAF) was replaced by the BetaShares Sustainability Leaders Diversified Bond ETF (ASX:GBND) to align with the Ethical Growth Portfolio's mandate for diversified, ethical investments.
The 'Magnificent Seven'—Meta, Nvidia, Tesla, Apple, Microsoft, Alphabet, and Amazon—have significantly contributed to the international market's outperformance, driving the technology sector's robust recovery.
Diversification helps reduce risk by spreading investments across various asset classes and regions, ensuring exposure to different parts of the global economy, which can aid in achieving long-term financial goals.
The InvestSMART Ethical Growth Portfolio focuses on seeking diversified, ethical growth investments while adopting a passive approach, with all ETFs being RIAA certified.
Timing the market during the AI boom is risky; instead, maintaining a diversified and long-term investment strategy ensures exposure to growth opportunities without the need to predict market peaks.
Owning an InvestSMART diversified portfolio provides exposure to a variety of asset classes and regions, reducing risk and helping investors achieve their long-term financial goals.
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