Core Equity100 is 100% allocated to global equities. The portfolio holds equity ETFs which collectively invest in over 3,500 stocks of the world’s top companies.
‍Learn more here.

What ETFs are included in the Equity100 portfolio?
‍You can view the entire list after completing your Risk Analysis via the 'Get started’ button on our website or the ‘Add portfolio’ button on the Syfe client dashboard.

What is the risk of the Equity100 portfolio?
‍This portfolio carries the same risk as investing directly in equities. Your portfolio may be subject to significant losses during a market downturn.

Will the Equity100 portfolio include asset classes other than equities?
‍No. The Equity100 portfolio will maintain a long-term strategic asset allocation to 100% equity ETFs.

First let’s consider the various investment options available to us. At one extreme we have passive index funds, which have low fees and track the performance of indices like the S&P 500 and MSCI World.

At the other extreme you could invest in an active fund, where individual stocks are chosen with the aim of outperforming their benchmark (typically the most appropriate index, e.g. MSCI World Index if selecting stocks globally). These have higher fees and can have larger swings in performance. In fact, the vast majority of the time, 87.98% (Source: S&P Global, as of Dec 31st 2023), these funds underperform their respective benchmarks.

Factor investing sits in between, but what is a factor I hear you ask… well, a factor is a characteristic that can help explain why certain groups of securities may perform the way they do in terms of risk and return.

The following are examples of factors; value (for under-valued companies), size (companies with smaller market capitalisations) and quality (companies with strong profitability, stable earnings etc.).

Academic research (notably Fama-French) shows that these characteristics explain significant amounts of stock performance over time. One can use factors to seek better risk-adjusted returns than simply following an index or trying to hand-pick stocks.

We find analogies often help, so let’s imagine we’re purchasing a car…. 
1. The passive approach would be to buy the standard model, which will be cost-efficient and gets us from point A to B. 

2. The active approach would be to heavily modify the car, swapping out most of the parts. Whilst we may get a faster car, it could be more dangerous or we may significantly impact the reliability and long term durability. 

3. The factor-based approach would be to add a few key upgrades which will most improve the car. We could invest in better tyres, fuel and brakes to enhance our mileage and safety, without sacrificing reliability.

Core Equity100 portfolio is designed for investors who want maximum exposure to global equities, and who are willing to take on higher systematic risks to potentially generate better returns relative to a traditional passive indexing strategy. For investors seeking low-risk investments, this portfolio may not be appropriate. To understand whether the Equity100 portfolio is suitable for you, please book an
‍complimentary appointment with our wealth experts.

Syfe selects ETFs that are liquid, and with low expense ratios to minimise costs and maximise returns.Additionally, Core Equity100 uses a Smart Beta strategy that takes into consideration the following factors: growth and value, volatility and country exposure. The portfolio also aims to achieve global diversification by investing in over 1,500 stocks from across the world through broad-based ETFs.

For more details. please refer to our explainer
‍here.

The ETFs in Core Equity100 have been selected to offer you the most efficient portfolio allocation and to to optimize your risk-adjusted returns. Changing the constituents may result in less than optimal returns.