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) or index funds that collectively invest in over 5,800 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 to provide international diversification across US, China, Europe and other markets.
US market exposure
The Core S&P 500 fund tracks the performance of the S&P 500 index. Its top holdings include Microsoft, Apple, and Amazon. As this fund is domiciled in Ireland, it is more tax efficient compared to a US-domiciled fund tracking the same index. This is because it holds a dividend withholding tax of just 15%, rather than the usual tax rate of 30%.
The fund tracks the performance of the Nasdaq-100 Index. Top holdings include Apple, Microsoft, Amazon, Meta, and Alphabet (Google’s parent company).
Developed and emerging markets exposure
MSCI EAFE ETF. It 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.
Core MSCI EM IMI UCITS ETF. It provides exposure to over 2,000 stocks from emerging market countries including China, South Korea, India and Brazil. Top holdings of EIMI include Taiwan Semiconductor Manufacturing Company, Alibaba, Tencent, Samsung, and Reliance Industries.
MSCI China ETF . It provides exposure to large and mid-sized companies in China. Its top holdings include Alibaba, Tencent, Ping An Insurance and Baidu.
CSI China Internet ETF . It provides exposure to Chinese Internet companies. Top holdings include Meituan, Pinduoduo, and JD.com.
Smart beta factor tilts
To optimize 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 tilt towards value, size, and quality. The ETFs that represent the three factors are highlighted below.
Morningstar Wide Moat ETF . IT provides exposure to companies with sustainable competitive advantages (economic moats, a quality tilt) in the US at attractive prices (a simultaneous value tilt). Top holdings include Adobe, Salesforce, Pepsico Inc, and Gilead Sciences.
S&P 500 Equal Weight UCITS ETF . IT is an equal weighted ETF that tracks the S&P 500 index. It adds a size factor tilt which helps moderates the concentration risk of the S&P 500.US Targeted Value ETF . It provides integrated exposure to size, quality and value by investing in over 1400 small and mid cap US companies (size) specifically targeting profitability (quality) and attractive pricing (value). Top holdings of that ETF include Chesapeake Energy, Invesco, and Sofi Technologies.
