Are you someone who favours a high-risk, high-reward approach to investing? A growth-oriented investment strategy may describe your investing style.

The building blocks of a growth portfolio 

A growth portfolio is one that’s predominantly invested in equities, with a smaller allocation to bonds and other assets for diversification. Historically, stocks have delivered higher returns than bonds. As such, a larger allocation to equities tends to help maximise your return potential.

However, this also means that you need to be comfortable with the fact that your portfolio can experience large fluctuations during a market downturn. 

Are you confident that you won’t panic and sell even if markets drop significantly? Do you intend to stay invested for the long term?

If you answered “yes” to the previous questions, a growth portfolio could meet your investment needs if your goal is to generate higher returns over the long-term.

For instance, you may be working towards a long term goal of early retirement. You want to grow your wealth as much as you can during this period, and are comfortable with large fluctuations in your portfolio. If need be, you have the flexibility to push back on your investment timeline as well. (Generally, the longer your time horizon, the more investment risks you can take.)

A look at the new Syfe Core Growth portfolio

If you’re looking for a growth portfolio, Syfe’s newest Core Growth portfolio could be an option. Giving you access to invest in technology stocks, healthcare stocks and many more fast-growing sectors, Core Growth is designed for investors seeking to maximise the risk-adjusted returns of their portfolio over the long haul, and who are comfortable with short-term market volatility.

Here’s a look at its asset allocation and geographical exposure.

Core Growth Snapshot: Updated as of 30 September 2024

About 70% of the Core Growth portfolio is invested in equities via quality exchange-traded funds (ETFs) that include the following. 

Snapshot of the Core Growth ETFs

The Core Growth portfolio provides exposure to over 5,000 different companies from fast-growing sectors around the world. You’re invested in companies such as Apple, Microsoft, Tesla, Alibaba, PepsiCo, Johnson & Johnson and Tencent Holdings. 

The stocks in your Core Growth portfolio

Enhanced Factor Exposure 

What sets the Core Growth portfolio apart from others is its Smart Beta strategy. 

Syfe’s Smart Beta strategy tilts the Core Growth portfolio towards three classical factors: value, quality, and size. These factors have been selected to generate better risk-adjusted returns.

Read more: A Smarter Factor Investing Strategy You Can Get Behind

To capture the benefits of these historically proven factors, we use Dimensional U.S. Targeted Value ETF (DFAT) for comprehensive exposure to Size, Value, and Quality factors, VanEck Morningstar Wide Moat ETF (MOAT) further strengthens the focus on Quality and Value. We also use Xtrackers S&P 500® Equal Weight UCITS ETF (XDEW) to increase your portfolio’s exposure to size while benefiting from its tax-efficient UCITS structure. 

Read more: Understanding Our Core Portfolio Strategy

Historical performance

The Core Growth portfolio aims to maximise long-term risk-adjusted returns. With an 8-year annualised return of 8.6%, it has also outperformed its S&P Target Risk Growth benchmark to date.