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Core ETF portfolio

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Core ETF portfolio

Your Friday morning report delved into the thinking and construct behind the Core ETF portfolio. Whilst this is a balanced ETF portfolio, I was keen to understand how the underlying weightings of the ETFs might change (and increase) if this was a high growth offering? For example, would the weightings of property and infra increase and by how much?

Answer

Hi Scott,

A typical high growth portfolio will hold in excess of 90% in growth assets, mainly equities, including small caps, with a higher skew to international. Here’s what Vanguard  have in their high growth model as a guide:

  • Australian Shares (VAS): 36.0%
  • International Shares (unhedged VGS): 26.5%
  • International Shares (hedged VGAD): 16.0%
  • International Small Companies (VISM): 6.5%
  • Emerging Markets (VGE): 5.0%
  • Global Aggregate Bonds (hedged VBND): 7.0%
  • Australian Fixed Interest (VAF): 2.0%
  • Cash: 1.0%
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