Passive Portfolio for 2023

Built with ETFs

Have a passive and diversified portfolio, across different asset classes, currencies and geographies, using ETFs traded on NZX (New Zealand eXchange)

For the Aggressive Investor

Portfolio aimed at investors with an aggressive profile, as the portfolio allocates 60% to growth income, including 2% exposure to cryptocurrencies.

Rebalancing

This report does not cover rebalancing, but this can be done by buying more of the ETF (or ETFs) at a current percentage below the initial allocation.

Performance of NZX's ETFs-based passive investment portfolio for 2022: -13.36% in 2022 (as of 02 Jan 2023)

50% IN DEVELOPED MARKETS

The Smartshares Global Equities ESG ETF (Ticker ESG) invests in the iShares Core MSCI World ex Australia ESG Leaders ETF, which aims to track the return on the MSCI World Ex Australia Custom ESG Leaders Index, before fees and expenses.

Expense ratio: 0.54% per year.

Performance: -17.85% in 2022

20% IN NEW ZEALAND

The Smartshares S&P/NZX 50 ETF (ticker NZG) is designed to track the return on the S&P/NZX 50 Index.

Expense ratio: 0.20% per year.

Performance: -14.29% in 2022

20% IN AUSTRALIA

The Smartshares S&P/ASX 200 ETF (ticker AUS) is designed to track the return on the S&P/ASX 200 Index (in NZD). The S&P/ASX 200 Index is made up of 200 of the largest companies listed on the ASX

Expense ratio: 0.30% per year.

Performance: -5.97% in 2022

10% IN EMERGING MARKETS

The Smartshares Emerging Markets Equities ESG ETF (ticker EMG) invests in the iShares MSCI EM IMI ESG Screened UCITS ETF USD (Acc), which is designed to track the return on the MSCI EM IMI ESG Screened Index.

Expense ratio: 0.59% per year.

Performance: -14.52% in 2022

WHAT ARE ETFs AND WHAT ARE THE ADVANTAGES?

EXCHANGE TRADED FUNDS

ETF (Exchange Traded Fund) is a financial asset traded on the stock exchange. It consists of several financial assets from the same assets class and seeks to replicate the performance of a given index, either fixed income or variable income.
ETFs are used on a large scale in the passive investment strategy because they are diversified and have lower management fees.
In New Zealand, ETFs can be distribution or accumulation ones. The latter is prefereable as distributions (i.e dividends) are highly taxed (while capital gains are not).

BENEFITS

.Advantages of ETFs for investors:

Greater simplicity.
Lower administration fees.
Lower risk due to broader diversification.
Profitability in line with the market.
Low need for track (or portfolio rotation).

WHO WE ARE:

TRENDSET Financial Education.

www.trendsetconsulting.com/en

Hamilton, New Zealand +64 212284022

arthur@trendset.com.br

Podcast: anchor.fm/TRENDSETConsulting