Whether you’re time poor or just want an effortless way to match your investments with your investment goals, Smart Baskets are a powerful way to harness the deep knowledge and expertise of Syfe’s wealth professionals, who spent over 1,000 hours designing not only the framework behind the product, but the individual composition and asset allocation of the baskets, designed to maximise your risk adjusted returns.
Our ready made Smart Basket orders allow investors to diversify their portfolio in just one order with a curated collection of stocks and ETFs.
Below we take a deeper look at what’s in Syfe’s High Growth AU basket or skip ahead to discover what type of investor the High Growth basket may be suitable for.
What’s in our High Growth AU basket?
The high growth basket has a 100% equity focus, putting it further out on the risk curve when compared to assets like cash or bonds.
Getting more granular, the basket has a heavy concentration in Australian equities, with a 35% target weighting in Vanguard Australian Shares Index ETF or VAS – an ETF which tracks the ASX 200 index. By investing in this Basket, you would get significant exposure to top Australian companies, like CBA, Qantas and BHP.
To give investors added diversification, the High Growth AU basket has allocations across international growth markets, like the US.
A 18% target allocation into the Betashares Nasdaq 100 ETF or NDQ gives investors exposure to some of the best and brightest technology companies in the world right now. Think Apple, Amazon, and market darling Nvidia.
A 33% target allocation in Vanguard MSCI Index International Shares ETF or VGE builds out further international diversification in the basket, increasing exposure to global blue-chip companies.
Elsewhere, a 15% target allocation gives investors exposure to the potential next wave of mega-companies, through the Vanguard FTSE Emerging Markets Shares ETF or VGE.
High Growth AU basket performance
Looking at the historical returns of the High Growth AU Smart Basket, we see that to 16 June the basket has returned 49.07% over the last three years, significantly outperforming the ASX 200 benchmark in the same time period, which rose just 25.8% in that period.
The Investor Behind the Basket: Why invest?
Syfe’s High Growth AU basket is suitable for investors with a long time horizon who can handle elevated levels of volatility.
This volatility cuts both ways. In 2022 the Nasdaq was carved up, falling 33.1% as investors dumped technology stocks at a rapid pace.
Yet in 2023, technology stocks have been some of the best performers, with the Nasdaq Composite now significantly up from its lows.
For those who had no exposure to equities – like the Nasdaq Composite – you would have missed out on that bounce back. By leveraging products like Smart Baskets investors can gain exposure to indexes like the Nasdaq with added diversification, helping to potentially protect against downside when markets turn volatile.
Importantly though, for older investors who are looking at retiring in the near future, stats like this make it clear that this Basket may not be appropriate, given the chance to see extreme drawdowns in relatively short periods of time.
For the risk tolerant, long term investor however – investing in growth assets has been a consistent method of generating handsome and long term returns – and more broadly, building wealth.
How to get started?
Download the Syfe app and start investing in Smart Baskets – like the High Growth AU basket today.
To find our High Growth basket in the Syfe app, navigate to the Smart Baskets tab either from the Home screen or via the Discover tab, then use our optional filters and select a time horizon of between 4-10 years, a high risk risk appetite, and select ‘optimise for growth’.
Smart Baskets are pre-packaged orders formulated according to investment attributes of the underlying securities/ETFs (such as geographic and industry exposure, historical dividend yield, and historical capital appreciation), and do not take into account your personal circumstances, risk appetite, and goals. The information provided does not suggest or imply and should not be construed as any guarantee of future performance, or as investment advice or strategy. Each Smart Order comprises several separate orders for ease of execution only, and should not be construed in any manner as a managed discretionary account or a managed investment scheme. Investing involves risk, including the risk of losing your invested amount. Any information that may be in this communication is general in nature only and is current at the time of writing. Syfe does not make recommendations of any kind or provide personal advice that take into account your objectives, financial situations or needs. You should therefore consider the appropriateness of the information in light of your own objectives, financial situation or needs before acting on such information, and/or speak to your financial or tax adviser for personal advice. Past performance figures are based on information provided by third parties and may not be accurate. Any references to past performance and future indications are not, and should not be taken as, a reliable indicator of future results. Syfe does not intend for any statement made here to relate to the acquisition or disposal of any shares in the companies or other financial products named here. Syfe makes no representation and assumes no liability as to the accuracy or completeness of the content of this communication.
