Saving vs investingWatch now →
What to consider before investingWatch now →
Investing vs tradingWatch now →
Types of investments and risk vs returnWatch now →
What’s your risk profile?Watch now →
Set your investment goals to decide how you will investWatch now →
Investing strategies – which one is right for you?Watch now →
Know how much you’re paying in feesWatch now →
How often should you invest?Watch now →
Keeping track and managing your portfolioWatch now →
Course key takeawaysWatch now →
Lesson 9 transcript
What could your core include?
- Australian equities
- International equities
- Fixed income
Most commonly, for the core, you could buy several broad exposure ETFs. ETFs are a great way to build a core/satellite portfolio because they typically offer diversified exposure at low cost. For example, the A200 Australia 200 ETF provides exposure to the 200 largest companies on the ASX.
Your core could also include for example a diversified fund that provides exposure to a particular country or region, such as the S&P 500.
What could your satellites include?
- Sector-specific or thematic ETFs are popular, with options including technology, healthcare, climate change innovation, cybersecurity, esports, e-commerce
- Individual stocks. These could be small or mid-cap companies, if you have many of the large-cap companies already covered in your core
Remember to choose your investments based on your goals and risk tolerance. We cover this in Lesson 4 – Types of investments and risk vs return.
It’s also worth noting that many people build an entire portfolio of ETFs, without selecting any individual stocks.