Portfolio Construction Archives | BetaShares
Not all indices are created equal

Not all indices are created equal – taking a fundamental approach

Reading time: 2 minutes
Over the past decade, a seismic shift has occurred across the global investment landscape – the shift of assets from active investment managers towards passive, or index, strategies. This shift has been of such magnitude that in the U.S. market the total assets invested in passive strategies eclipsed the total invested with active managers in April 20191.

Read more

Sticker shock! How to position portfolios for a potential breakout in inflation

Sticker shock! How to position portfolios for a potential breakout in inflation

Reading time: 5 minutes
Along with rising commodity prices over recent months, the recent much higher than expected lift in United States consumer prices has heightened global market concern over a potential breakout in inflation. For those investors concerned about such a risk, this note considers some potential ways they can add an ‘inflation hedge’

Read more

Factoring in Factors to your Investing

Factoring in factors to your investing

Reading time: 3 minutes
In the realm of investing, a ‘factor’ can be described as any characteristic that helps explain the long-term risk and return performance of an asset.
Factor investing is an investment approach that involves targeting specific drivers of return across asset classes. There are two main types of factors that have driven asset class returns: macroeconomic factors and style factors.

Read more

Desperately seeking yield in a low-yield world: the case for bank hybrids

Desperately seeking income in a low-yield world: the case for bank hybrids

Reading time: 3 minutes
Hybrid securities have tended to offer attractive franked income returns for usually only moderate levels of capital volatility. As such, and especially in these times of very low cash and fixed-income returns, they offer a potentially useful additional source of income and diversification in many investor portfolios.

Read more

Apple v apples

Value or growth? Why not both

Reading time: 4 minutes
In the vast universe of investment approaches, perhaps the largest divide is between growth investors and value investors.
Growth investors are willing to pay a premium for earnings, sales or revenue growth, while value investors target companies, sectors or even regions that they believe are being undervalued by the market based on their fundamental value,

Read more

3 ways to ‘stay invested’ in 2021

Reading time: 5 minutes
The bull market has continued to edge higher in 2021 with stimulus package discussions continuing in the U.S., global vaccine rollouts – and even Jack Ma making public appearances again! There has been significant outperformance in certain sectors, notably mega-cap Tech, and other sectors such as Energy and Financials,

Read more

Apple v apples

Property vs. sharemarket – the age-old debate

Reading time: 7 minutes
Whilst interest rates are at record lows and are likely to remain there for several years based on Reserve Bank governor Phillip Lowe’s commentary1, should you be taking advantage of the current market environment by investing in property or investing in the sharemarket?

Read more

Core strength: working the abs of your investment portfolio

Reading time: 3 minutes
A well-diversified portfolio can assist with reducing volatility and enhancing performance returns.
And perhaps the easiest way to diversify your portfolio is to invest in what are known as ‘core’ exposures. The concept of core exposures is often used in the financial advice world and refers to the foundations of,

Read more