Inside Syfe’s Core Equity100 Portfolio

Core Equity100 is an all-equity portfolio for investors who want to maximise their exposure to global stocks.

The portfolio is constructed using equity exchange traded funds (ETFs) and individual stocks, where the portfolio collectively invests in over 1,500 stocks from the world’s top companies. These include Microsoft, Amazon, Facebook, Walmart, Alibaba, and more.

The global building blocks of your portfolio

Core Equity100 uses a number of broad-based ETFs and individual stocks to provide international diversification across US, China, Europe and other markets.

US market exposure

USDirect is Syfe’s innovative direct indexing process that replaces the US equity index ETFs with individual US stocks in our Core portfolios. Top holdings include Apple, Amazon, Tesla, Meta and more. USDirect will make up approximately 75% of Core Equity 100 with the remaining comprising of ETFs providing exposure to non-US equity.

This portfolio provides exposure to US mid-cap stocks and US small-cap stocks. Their top holdings include Tyler Technology, Factset Research, Wingstop, and Topbuild Corp.

Chinese market exposure

Additionally, the portfolio provides exposure to large and mid-sized companies in China. Its top holdings include Alibaba, Tencent, Ping An Insurance and Baidu.

Another underlying ETF provides exposure to Chinese Internet companies. Top holdings include Meituan, Pinduoduo, and

Developed and emerging markets exposure

This portfolio provides exposure to over 900 large- and mid-cap stocks from a broad range of companies in Europe, Australia and Asia. Top holdings include Nestle, Astrazeneca, Toyota, and LVMH.

At the same time, we provide exposure to over 2,000 stocks from emerging market countries including China, South Korea, India and Brazil. Top holdings  include Alibaba, Tencent, Samsung, and Reliance Industries.

Smart Beta factor tilts

To optimise the Core Equity100 portfolio for better risk-adjusted returns over the long term, we’ve also employed a Smart Beta strategy that tilts the portfolio to three factors.

Core Equity100 has a moderate tilt towards growth, a geographical tilt towards China, and a low volatility tilt. The ETFs and individual stocks that represent the growth and low volatility tilt are highlighted below.

Growth tilt

The underlying stocks track the performance of the Nasdaq-100 Index. Top holdings include Apple, Microsoft, Amazon, Meta, and Alphabet (Google’s parent company).

They also track the S&P 500 index. As such, it adds a size factor tilt biased towards small-cap stocks. At the same time, it also adds a value factor tilt which helps moderate the growth factor influence.

Low-volatility tilt

Core Equity 100 provides exposure to companies from the food and staples, beverage and personal product industries. Top holdings include Procter and Gamble Company, Coca-Cola, Walmart and Mondelez.

The portfolio provides exposure to companies in the pharmaceuticals and healthcare industries. Top holdings include Johnson & Johnson, Merck & Co., Pfizer Inc., and Abbott Laboratories.

Furthermore, Core Equity100 provides exposure to companies from the utility, power producer and energy trader industries. Top holdings include NextEra Energy, Dominion Energy, Duke Energy Corporation, and Southern Company.

At the same time the portfolio provides exposure to companies from technology hardware, software, IT services, and more. Top holdings include Apple, Microsoft and Nvidia.