We last wrote about ETF ownership in the community back in November. Curious to see what’s changed?
As a reminder, the ETF target portfolio option in the SelfWealth platform is rebalanced quarterly. Therefore this represents the community’s holdings at the end of December 2018.
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Top 10 ETFs as held by the Community
As per November, Vanguard dominates. Let’s dive deeper into what’s changed.
Sub out VHY, sub in VAF.
VHY = High yield Australian shares.
VAF = Fixed interest.
There has been a lot in the media about a potential recession this year in Australia, with house prices weighing down on those fears. Does a change from VHY to VAF reflect this? Is the SelfWealth community derisking its ETF portfolio? Let’s have a look at the two Vanguard ETFs
The large majority of VAF is made of government-related bonds, with the remainder comprised of corporate institutions. Government bonds are considered the least-risky bond option available. In contrast, VHY is Australian shares, concentrating on dividend payments. This is a noticeable change in risk.
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