Do you ever find yourself wishing there was a way to maximise your exposure to global equities and take advantage of the market recovery?
Or find yourself looking for a high-return investment that will complement your bond holdings or your MPF?
Some customers do. That’s why we’ve launched a portfolio for investors seeking a 100% exposure to stocks. We call it Core Equity100 – a portfolio made for experienced investors who are willing to face periods of significant share price volatility to achieve higher risk-adjusted returns over the long-term.
What’s in Core Equity100?
Core Equity100 holds selected equity exchange traded funds (ETFs) and individual stocks that together invest in over 1,500 top companies from around the world. Microsoft, Amazon, Facebook, Procter & Gamble, Alibaba, and more are among some of the key stock holdings in the Core Equity100 portfolio. Learn more here.
What’s in Core Equity100?
How are the underlyings in Core Equity100 selected?
Core Equity100 is built on the principles of global diversification and a Smart Beta approach our investment team has constructed.
Firstly, global diversification matters. It positions your portfolio for long-term growth and can help mitigate the risks of a local economic downturn.
Collectively, these ETFs and individual stocks included by Equity100 allow you to invest in more than 1,500 companies in the US, developed market countries in Europe, Australia and Asia, and emerging market countries such as China, India and South Korea.
Understanding Syfe’s Smart Beta approach
On top of global diversification, we layer on a smart beta approach. Smart beta draws on a wide range of academic research that postulates how certain factors drive investment returns. Simply put, it is a strategy that seeks to capitalise on certain performance factors to deliver higher risk-adjusted returns at a lower cost.
Based on Syfe’s own research and analysis in 2020, we found that growth stocks have outperformed value stocks in recent years. Similarly, large-cap stocks have outperformed small-cap stocks. We also found that low-volatility stocks i.e. stocks that generate steady, positive returns without wild price swings, have performed well.
These factors we have identified – growth, large market capitalisation, and low volatility – form the basis of our multi-factor smart beta approach. To implement this strategy, we select the ETFs that best represent these factors and overweight them in the Core Equity100 portfolio. Dive deeper into our Smart beta Strategy here.
What stocks form our Smart Beta strategy?
Our Smart Beta strategy tilts the Core Equity100 portfolio towards Value, Growth, and Min Volatility factors.
To give Core Equity100 a growth and large-cap tilt, we include stocks that track the Nasdaq 100 Index and are weighted towards large-cap tech stocks that tend to be fast-growing.
The low-volatility tilt is achieved by selecting multiple SPDR sector stocks – Consumer Staples, Healthcare, and Technology. These sectors have been chosen because they collectively generate the highest risk-adjusted returns for the lowest amount of volatility on a portfolio basis. Learn more here.
Unsure if this is right for you? Schedule a free consultation with our dedicated Wealth Experts. They will be able to offer personalised investment advice that can help achieve your financial goals.
How do I set up Core Equity100?
The advantage of Core Equity100 over a DIY approach to ETF and Direct Indexing investing is cost efficiency. Syfe’s $0 brokerage charge and $0 withdrawal fee makes the portfolio ideal for investors who wish to invest regularly. Moreover, our fees start from just 0.35% to 0.65% per annum.
Core Equity100 can be used as a standalone portfolio or as part of a core-satellite investing approach, whereby customers use our Global Portfolio as their “core” investment and the Core Equity100 as a “satellite” diversifier.
Investors new to Syfe can create their Core Equity100 portfolios here. Syfe customers can add the new Core Equity100 portfolio by clicking the “Add Portfolio” button on their Syfe account dashboard.
