How to build a high growth, low cost portfolio using ETFs

LiveWire03-27

There's a reason investors are drawn to the stock market and keep returning, despite the reality of painful sell-offs that can take you on an emotional rollercoaster. Investing in equities has been an...

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Investing in equities has been an...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/how-to-build-a-high-growth-low-cost-portfolio-using-etfs\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How to build a high growth, low cost portfolio using ETFs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow to build a high growth, low cost portfolio using ETFs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-27 10:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/how-to-build-a-high-growth-low-cost-portfolio-using-etfs><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There's a reason investors are drawn to the stock market and keep returning, despite the reality of painful sell-offs that can take you on an emotional rollercoaster. Investing in equities has been an...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/how-to-build-a-high-growth-low-cost-portfolio-using-etfs\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0320765059.SGD","symbol_name":"FTIF - Franklin US Opportunities A Acc SGD","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/how-to-build-a-high-growth-low-cost-portfolio-using-etfs","article_id":"2422606332","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/how-to-build-a-high-growth-low-cost-portfolio-using-etfs","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2422606332","pubTimestamp":1711504966,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"There's a reason investors are drawn to the stock market and keep returning, despite the reality of painful sell-offs that can take you on an emotional rollercoaster. Investing in equities has been an incredible way to build wealth over long periods of time.I'm not talking about speculation or punting on a hot tip; I'm talking about holding a decent allocation to growth assets and letting them compound over many years. Simple, right?Not quite. No matter how compelling the evidence that switching in and out of the market will hurt your returns, it remains one of, if not the biggest, challenges investors need to overcome.\"In most equity markets, if you don't have a high probability of recession, we tend to find that you can see corrections if investors think the market has got a bit ahead of itself. But you tend not to see those large bear markets. They tend to be associated with true recessions which create an earnings recession,\"","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4527":"明星科技股","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","BK4588":"碎股","LU0444971666.USD":"天利全球科技基金","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4579":"人工智能","HJPN.AU":"BETASHARES JAPAN ETF - CURRE","XAO.AU":"标普/澳交所 普通股指数","SQQQ":"纳指三倍做空ETF","BK4503":"景林资产持仓","CFLO.AU":"Betashares Global Cash Flow Kings Etf","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","WTC.AU":"WISETECH GLOBAL LTD","BK4581":"高盛持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IVV.AU":"ISHARES S&P 500 ETF/AUS","LU0238689110.USD":"贝莱德环球动力股票基金","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","HACK.AU":"BETASHARES GLOBAL CYBERSECUR","QID":"纳指两倍做空ETF","LU0072462426.USD":"贝莱德全球配置 A2","BK4529":"IDC概念","LU0056508442.USD":"贝莱德世界科技基金A2","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","ARB.AU":"ARB CORP LTD","LU0080751232.USD":"富达环球多元动力基金A","NVDA":"英伟达","FDN":"First Trust Dow Jones Internet I","BK4592":"伊斯兰概念","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","REA.AU":"REA GROUP LTD",".IXIC":"NASDAQ Composite","NDQ.AU":"BETASHARES NASDAQ 100 ETF","BK4585":"ETF&股票定投概念","BK7503":"科技股","ASIA.AU":"BETASHARES ASIA TECH TIGERS","RBTZ.AU":"BETASHARES GB ROBOT N AI","PSQ":"纳指反向ETF","QLD":"纳指两倍做多ETF","QQQ":"纳指100ETF","TQQQ":"纳指三倍做多ETF","MQG.AU":"Macquarie","BK4587":"ChatGPT概念","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","IIND.AU":"BETASHARES INDIA QUALITY ETF"},"translate_title":"如何利用ETF建立高增长、低成本的投资组合","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IVV.AU":1,"XAO.AU":1,"WTC.AU":1,"REA.AU":1,"RBTZ.AU":1,"NVDA":1,"NDQ.AU":1,"IIND.AU":1,"HJPN.AU":1,"HACK.AU":1,"CFLO.AU":1,"ARB.AU":1,"ASIA.AU":1,"FDN":0.9,".IXIC":0.9,"MQG.AU":0.72,"PSQ":0.6,"QID":0.6,"QLD":0.6,"QQQ":0.6,"SQQQ":0.6,"TQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"There's a reason investors are drawn to the stock market and keep returning, despite the reality of painful sell-offs that can take you on an emotional rollercoaster. Investing in equities has been an incredible way to build wealth over long periods of time.\nI'm not talking about speculation or punting on a hot tip; I'm talking about holding a decent allocation to growth assets and letting them compound over many years. Simple, right? Not quite. No matter how compelling the evidence that switching in and out of the market will hurt your returns, it remains one of, if not the biggest, challenges investors need to overcome.\nAs part of Livewire's Listed Series, I hosted a panel session with Sebastian Ferrando from Koda Capital and Cameron Gleeson from Betashares to discuss the outlook for growth as well as some tips and techniques for building a high-growth portfolio.\nWhat is growth investing?\nGrowth assets are investments that can increase in value over time and produce income. The NASDAQ in the US is a great example of an index that has delivered impressive growth, and Australian residential property is another asset class that has created long-term wealth for many people.\nCameron Gleeson from Betashares makes the timely point that growth assets also provide a natural hedge against inflation and help protect your capital's purchasing power. \n\"The other advantage beyond wealth creation is that equities are a great long-term inflation hedge. Things like cash aren't necessarily an inflation hedge - equities do that. So if we're building long-term wealth and capital growth, growth equities are a great way to go,\" says Gleeson.\nIs it a good time to invest in growth assets?\nThe honest answer is probably yes and no. (It will also depend on your objectives.)\nIn late October last year, it became clear that central banks had started to win the battle against inflation, which set a fire under growth assets. The NASDAQ has rallied 70% in less than five months.\nMy colleague Kerry Sun recently highlighted research from Macquarie that attempts to capture equity market sentiment. It's called the FOMO meter, and it is close to peak FOMO. \nEquity indices hitting new highs doesn't necessarily mean a sell-off is imminent, Macquarie analysts conclude.\n\"When initial sentiment is this high, US stock returns tend to be below average in the following year, while ASX returns could be slightly negative,\" Macquarie analysts wrote.\n\n\n\n\n\n\n\n\n\nImage: Macquarie analysts believe sentiment is approaching peak FOMO\nOn a positive note, Gleeson says Betashares believes that we're likely to avoid recession, which means we're not likely to see those big bear market drawdowns.\n\"In most equity markets, if you don't have a high probability of recession, we tend to find that you can see corrections if investors think the market has got a bit ahead of itself. But you tend not to see those large bear markets. They tend to be associated with true recessions which create an earnings recession,\" Gleeson says.\nJust because stocks have had a good run doesn't necessarily mean they are expensive if their earnings are also growing quickly. Sebastian Ferrando from Koda Capital explains that Nvidia (NASDAQ: NVDA), whilst experiencing phenomenal share price gains, has a lower P/E ratio at 33 times next year's earnings than many ASX-listed growth stocks such as REA Group (ASX: REA) and WiseTech Global (ASX: WTC). \n\"Just to put that in context for a second, in the Aussie market, ARB (ASX: ARB), which makes bull bars and car accessories, has a P/E of 33 times. So I asked this person and I regularly asked myself, do you want to own cars, car parts and bull bars or the potential future of the world? I reckon that answer's pretty easy,\" Ferrando said.\n\n\n\n\n\n\n\n\n\nImage: Sebastian Ferrando, Koda Capital\nHow can you manage volatility in growth assets?\nVolatility is part of the journey with growth investing. Knowing how much volatility you can stomach is an important starting point that will influence your allocation.\nFerrando says a diversified portfolio with an allocation to defensive assets, like bonds, is a proven technique that can smooth out the journey.\nHe also says equal-weight ETFs can be a way to overcome the concentration created when a small number of equities can dominate an index as banks do on the ASX.\nGleeson emphasises the importance of avoiding too much overlap and cross-holding within a portfolio. He says using a core/satellite approach, where specific growth exposures are added to a core portfolio, is a good technique, but you need to ensure there is not too much overlap across holdings, as it can increase volatility.\n\"Taking the example of (ASX: HACK), our global cybersecurity ETF, there's only around 6% weighting in cybersecurity within something like the NASDAQ. So we can see how this can be quite a good compliment to what you may hold in the core, adding a bit of diversification,\" Gleeson says.\n\n\n\n\n\n\n\n\n\n\nImage: Cameron Gleeson, Betashares\nInvesting in high-growth assets often comes with volatility. I own a high-growth ETF in my portfolio that fell more than 40% in a year. It has since recovered, but it was a wild ride. \nBuilding a position over time and having uncorrelated assets in my portfolio allowed me to take advantage of the drawdown rather than selling out and missing the recovery.\nIf you find volatility unnerving, you might be interested in reading this article, which looks at the ten most consistent ETFs on the ASX.\nWhat are some of the attractive growth opportunities in 2024\nFerrando says the core of his growth allocation is in US equities, and specifically, he says his go-to ETFs for growth are the iShares S&P 500 ETF (ASX: IVV) and Betashares NASDAQ 100 ETF (ASX: NDQ).\n\"The US is the home of the growth market. So I skew heavily towards the US. \"\nIn addition, he says the healthcare sector has good long-term growth dynamics and is also finding growth opportunities in thematics such as energy transition.\n7 high growth ETFs from Betashares\nGleeson shares a selection of the growth ETFs from the Betashares product line. The Betashares Nasdaq 100 ETF (ASX: NDQ) was the #1 tipped ETF in Livewire's annual Outlook Series Survey.\n\"These are now global stalwarts. If you look at the revenue composition or where these companies earn their revenue, it's very globally diversified. So it's a good global core.\"\n\n\n\n\n\n\n\n\n\nImage: ASX:NDQ versus All Ordinaries (XAO) (Source: Market Index)\nThe Betashares Global Cash Flow Kings ETF (ASX: CFLO) is a new product focusing on companies with strong free cash flows.\nIn the thematic bucket, Gleeson points to the Betashares Global Cybersecurity ETF (ASX: HACK) and Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ), which owns companies that can benefit from the automation of manufacturing and supply chains.\nHe highlights the Betashares Japan ETF-Currency Hedged ETF (ASX: HJPN) for non-US centric exposures. \n\"Japanese equities tend to go well within the yen depreciates, so having a currency hedge exposure works well in basically hedging out the depreciation of the yen and you get a nice carry, actually get about 4% per annum from that hedging activity as a tailwind.\"\nHe also highlights the Betashares India Quality ETF (ASX: IIND) and the Betashares Asia Technology Tigers ETF (ASX: ASIA), providing exposure to Asian technology, which he describes as \"somewhat unloved but relatively cheap.\"\n\n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2422606332"}