Quarterly Rebalance: SW Top 10 Index Performing at 36.5%!

Quarterly Rebalance: SW Top 10 Index Performing at 36.5%!

The ‘SW Top 10 Members’ is an index comprised of the top 20 stocks, held by the top 10 best performing portfolios. That’s the top 10 of over 50,000 portfolios! Needless to say, to be in the top 10 you’ve got to be pretty good and not just relying on speccy stocks…

The index is rebalanced quarterly, therefore now’s the perfect time to have a look at how things have changed quarter on quarter.

 

How Does an Investor Make It Into the Top 10?

The WealthCheck score is SelfWealth’s proprietary measurement used to rank an investor against the Community. It takes into account an investor’s performance over a 12-month period (50% of the score) as compared to the Community, the diversity of their portfolio (40% of the score) and the valuation as per Thomson Reuters (the remaining 10%). The WealthCheck is then represented as a letter, starting from A+ and bottoming out at F.

 

How Does This Index Perform?

As of 1st October, this index has returned a whopping 36.5% over the last 12 months including dividends. If you’re a SelfWealth Member you can rebalance your portfolio to an index like this after a few clicks — all buy and sell trades are placed for you to match the target! Remember, you’ll never pay more than $9.50 per trade at SelfWealth.

 

 

The Index

Without further ado, see below for the top 20 stocks equally weighted, held by the top 10 investors.

Note: the coloured dots represent overvaluation (red), fair valuation (yellow), undervaluation (green) or no valuation given (black) by Thomson Reuters at the time of viewing that stock.

 

 

Stocks cut from the index:

 

 

We’ve asked SelfWealth Founder and CEO, Andrew Ward, for his take on the inclusions and exclusions.

 

The ETF Hype Continues

The previous quarter contained a total of five ETFs – VAF, VAS, VTS, ETHI and IVV – but we’ve now got eight ETFs in the index. Noticeably some exposure to Asia and an increase in exposure to the US. US ETFs representing 20% of the portfolio if weighted equally, an approach SelfWealth champions.

SelfWealth is poised to launch its very own ETF soon, driven by Community data… watch this space!

 

The Big Ins

The FinTech revolution is also gaining traction with the Community. Afterpay makes the cut for the first time as the Community backs independent financial institutions as opposed to the big 4 banks.

 

The Big Outs

Telstra is out. Has the Community woken up to the fact, that although Telstra has historically paid great franked dividends, maybe the capital growth story is not so rosy for the future?

 

The Banks Hold On (Just…)

Despite the findings of the Royal Commission and the subsequent media beating, the top performers continue to hold onto NAB, Westpac and Macquarie. CBA and ANZ are notable by their absence, however, they weren’t in the index last quarter either.

 

How Do I Access This Index?

Simply create a SelfWealth Trading account and sign up to Premium – you get three months for free upon sign up. It’s then $20 per month, which also gives you unlimited Thomson Reuters articles, live pricing on the stock analysis page as well as market depth. Want to follow this index? We’ve got a mechanism called ‘target portfolio’ that lets you align your portfolio to this index with a few clicks.

 

Any questions or if you need help with your account, get in touch at members@selfwealth.com.au or on live chat during business hours.

 

If you’ve already got an account, you can view all SelfWealth indexes via the left-hand side menu once logged in, by clicking Members > Index.

 

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Past performance is not an indication of future performance. In preparing our website content, individual circumstances, for example, tax implications, have not been taken into account and it may, therefore, not be applicable to an individual’s situation. Before making an investment decision, you should consider your circumstances and whether the information on our website is applicable to your situation. This content was prepared in good faith and we accept no liability for any errors or omissions.

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