The Stockspot portfolios include Exchange Traded Funds (ETFs) which are the easiest way to invest in hundreds of shares via a single ETF, without the need to pick individual shares.
The Stockspot portfolios include 5 ETFs covering 5 key asset classes - Australian and global shares, bonds and gold.
You can access thousands of companies through these 5 ETFs alone including the big global tech companies like Amazon, Netflix, Facebook, Ten Cent and Ali Baba. More locally in Australia, the Vanguard Australian Share ETF gives you exposure to Australia's top 300 companies like the Big Four Banks, Woolworths and BHP.
ETFs remove the need to pick stocks as you will always have exposure to the winning companies each year. It's also the best way to reduce risk and provide a plenty of diversification within an asset class like Australian shares.
Bonds and Gold are equally as important in your portfolio, providing a cushion when investments like shares fall.
If there was ever a better lesson, its was the 2020 share market fall. Bonds and Gold cushioned the Stockspot portfolios by between 50%-80% (depending on your strategy). A share market fall of close to 36% meant that clients in the highest growth portfolio fell by only 18% and even less for the conservative strategies.
Diversification is the best way to manage risk and remove the need to pick shares.
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