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Which ETF’s will work moving forward?

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Which ETF’s will work moving forward?

Hi James,

Firstly thanks for some great macro and individual stock advice. I have covered the cost of the membership many times over with my paper profits on ALL, OZL and ORE. Since coming on board my share portfolio has slightly outperformed the ASX which is something I used to find very hard.

My question: In a high growth market it seems to make sense to let passive ETF's (i.e. VAS and VDGR) do the work (rising tide lifting all ships). However with future market growth probably lower than we have see the last few years, is this a good time to get out of passive ETF's and go for a combination of more active ETF's and direct share ownership? Or put another way, is it easier to outperform the market in a rising or flat market?

General advice and just your own experience.

Thanks, Charles

Answer

Hi Charles,

A great question because the best way to play the next few years is likely to very different to what’s in today’s rear view mirror with the obvious change being interest rates are on the rise. We feel you are on the right track with your views sounding largely aligned to our own:

  • We believe Active Investing is positioned extremely well for the rapidly evolving economic landscape but obviously we / you need to get it right, as do respective ETF’s.
  • Direct share ownership is our “bread & butter” hence by definition we are total converts but again I caution that there will be plenty of land minds lurking in the ASX over the coming years.

MM’s broad view is 2022/23 will be an extremely exciting time for investors but we envisage increased volatility which bring with it opportunity.

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US S&P500 Growth index
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