Advice

[u/Dependent-Zombie8420]

I’m 24 and planning to invest around $800 per month for the next 15+ years. I’m currently investing $400/month into BGBL.
After doing some research, I was initially thinking of building a portfolio with 6 ETFs:
• $400 BGBL
• $100 Australian shares
• $60 emerging markets
• $50 NDQ
• $140 bonds
• $50 gold
But now I’m wondering if I’m overcomplicating things and would be better off narrowing it down to just 3 ETFs.
I’m aiming for a moderate-risk portfolio with good long-term growth, decent diversification and minimal unnecessary overlap.
Would you guys stick with something like BGBL + Australian shares + bonds, or keep some exposure to emerging markets, NDQ or gold?
Would really appreciate your thoughts!

[u/HAL-_-9001]

Personally, I do not see any need to have exposure to the ASX because it's not growth orientated, which you clearly are and should be.

I would align with the Nasdeq and S&P.

[u/Incon4ormista → u/HAL-_-9001]

franking credits, it's only 2 or 3 % per year advantage but it's every year.. for ever.

[u/HAL-_-9001 → u/Incon4ormista]

Yeah it's a nice perk but I still find immaterial compared to growth returns.

[u/Logical-Bison-9959 → u/HAL-_-9001]

This exactly. Australian market is worth less than the market capitalization of AAPL. There's hardly any volatility. There's no growth and out major players (mining and banks) are all in a downturn.

[u/Incon4ormista → u/Logical-Bison-9959]

irrelevant, size is not success.

[u/HAL-_-9001 → u/Logical-Bison-9959]

Indeed. This is obviously talking the index as a whole, which is very aub optimal for returns.

That being there are always a couple of gems that offer upside but obviously the OP should not be considering individual stocks.

[u/istudyheadshapes → u/HAL-_-9001]

The ASX has returned just under 10% on average? What is wrong with 10%?

[u/HAL-_-9001 → u/istudyheadshapes]

I'm not sure where you're looking?

ASX200 1yr is 1.33%, 5yr 4.28% & 20yr is 4.09%.

It's dividend focused from generally very mature companies with low growth.

The US is the opposite.

[u/istudyheadshapes → u/HAL-_-9001]

You are not factoring in dividends dude.....
total growth growth + dividends.

[u/HAL-_-9001 → u/istudyheadshapes]

Sure. Dividends are not included but it's still underperformed the benchmark.

[u/istudyheadshapes → u/HAL-_-9001]

Dude, dividends are literally part of the total return. America has had a huge run up with AI. I am not sure all the capex is going to pay off and arguably America might not have the same returns over the next decade (which is why its important to diversify).

[u/HAL-_-9001 → u/istudyheadshapes]

AI is still early. Capex is still early too. There are no guarantees with any company. What if dividends are reduced? Works both ways.

Diversification is protection against ignorance. It's not my cup of tea. Agree it's essential for some.

[u/istudyheadshapes → u/HAL-_-9001]

My primary point is to say the ASX has returned 1.33% in 1 YR and 4.09% per year over 20 is completely incorrect.

[u/Zealousideal-Row9130]

How about 70% BGBL, 20% A200, 10% BEMG

or 50% BGBL, 50% GHHF

[u/Dependent-Zombie8420 → u/Zealousideal-Row9130]

That’s interesting, definitely have a look on this!!

[u/L00SEC0NTR0L → u/Zealousideal-Row9130]

Why BEMG, what about a active managed EM like EMKT

[u/Impressive_Koala5926]

What are your investment goals? You said you will do it for the next 15 years - do you want access to this at the end of that for a house deposit or are you investing now for your retirement? At your age I would focus on high growth options (including geared) and dont bother with the bonds/gold unless you are really worried about a downturn and seeing your balance go down... although this then creates more buying opportunity for you to continue investing and growing it for more years!

[u/Dependent-Zombie8420 → u/Impressive_Koala5926]

Yess, one of my main goals is to buy a house in the future. Could you please suggest some good high-growth investment options? I’ve been looking at Vanguard’s High Growth ETF (VDHG), but I’m wondering if there are any other options you’d recommend instead?

[u/mcgrouchytrader]

Have a look at the vanguard mixed etf options. Same outcome but easier

[u/mcgrouchytrader → u/mcgrouchytrader]

https://www.vanguard.com.au/personal/invest-with-us/readymade-portfolio

[u/Dependent-Zombie8420 → u/mcgrouchytrader]

would you suggest me with the high growth fund of vanguard?

[u/mcgrouchytrader → u/Dependent-Zombie8420]

You've said moderate in your initial post. That would be growth or high growth in vanguard ready made etfs

[u/nudist-walker]

Download the mastering the markets app all watch all the videos mates wish I did at your age its free you can pay upper tiers but as you start its the best community and the educators are some of the best in aus

[u/Logical-Bison-9959]

Everyone is so different. Asking what others think about allocation is going to get 10 different answers from 10 different people.

So here's my 3 cents.

instead of NDQ I would be going IVV and I would be stacking it hard. Nothing on that list is going to beat the s&p500 over 15 years.

[u/RetiredEarly2018]

My advice would be that you do a little more research regarding risk capacity vs risk tolerance and see if that understanding brings about a shift in your asset allocation.

[u/Long-Short1901]

My portfolio is the following gives me all the exposure needed. I still own some VISM but swapped over to AVSV a few months ago

VGS60%
AVSV10%
AVTE10%
A20014%
FSML6%