Index Plus: Initial Holdings
The Index Plus Portfolio is constructed to outperform the ASX 200 benchmark by 3-4% annually. By balancing stable market exposure with tactical allocations in high-growth and thematic sectors, the portfolio aims to deliver enhanced returns without taking on excessive risk. Below is a detailed breakdown of each holding and the rationale behind its inclusion.
Understanding Core and Active Holdings
- Core Holdings: These are the foundation of the portfolio, providing broad market exposure and stability. They aim to deliver steady returns and reduce overall volatility.
- Active Holdings: These investments target specific market opportunities or themes with high growth potential. They are intended to boost overall portfolio performance by capitalizing on emerging trends and sectors.
Core Holdings:
- Betashares Geared Aus Equity Fund (Hedge Fund) (GEAR) – 27.50% Allocation
- Betashares Australian Major Bank Hybrids Index Etf (BHYB) – 17.50% Allocation
- Global X Usd High Yield Bond Etf (Currency Hedged) – 5.00% Allocation
The core holdings are selected to provide a solid and stable base for the portfolio.
GEAR offers leveraged exposure to the Australian share market, aiming to amplify the returns of the ASX 200 Index. This positions the portfolio to benefit more from positive market movements.
BHYB invests in hybrid securities from Australia’s major banks, providing attractive and tax-efficient income with lower volatility than regular equities. This adds stability and a steady income stream to the portfolio.
USHY diversifies the fixed-income component by adding U.S. high-yield corporate bonds, enhancing income potential and spreading risk across different markets.
Together, these core holdings aim to deliver consistent growth and income, anchoring the portfolio to the broader market while mitigating overall risk.
Active Holdings:
- Vaneck Msci International Quality Etf (QUAL) – 7.50% Allocation
- Betashares S&P 500 Equal Weight Etf (QUS) – 5.00% Allocation
- Global X Nasdaq 100 Covered Call Etf (QYLD) – 2.50% Allocation
- iShares Global Healthcare ETF (IXJ) – 5.00% Allocation
- VanEck Morningstar Wide Moat ETF (MOAT) – 5.00% Allocation
- Global X Physical Precious Metals Basket (ASX: ETPMPM) – 7.50% Allocation
- Global X Copper Miners ETF (WIRE) – 2.50% Allocation
- Betashares Global Uranium Etf (URNM) – 5.00% Allocation
- VanEck U.S. Private Equity ETF (GPEQ) – 5.00% Allocation
- Global X Bitcoin ETF (EBTC) – 2.00% Allocation
The active holdings are chosen to enhance the portfolio’s returns by tapping into specific sectors and themes with high growth potential.
Global Equity Exposure: Investments like QAUL and QUS provide access to high-quality U.S. companies and a broad range of U.S. large-cap equities, respectively. This diversifies the portfolio internationally and targets growth in the U.S. market.
Sector Opportunities: Funds like IXJ (global healthcare) and MOAT (companies with sustainable competitive advantages) focus on sectors known for stability and long-term growth, adding depth to the portfolio’s diversification.
Thematic Investments: Holdings such as ETPMPM (precious metals), WIRE(copper miners), and URNM (uranium miners) allow the portfolio to capitalize on specific trends like the demand for commodities driven by industrial growth and renewable energy initiatives.
Alternative Assets: GPEQ provides exposure to U.S. private equity, offering potential higher returns from privately held companies. EBTC introduces cryptocurrency exposure, aiming to capture potential gains from the growing adoption of digital assets.
These active holdings collectively aim to boost the portfolio’s performance by investing in areas with strong growth prospects, while also enhancing diversification across different asset classes and markets.
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.