Syfe rolls out Equity100 portfolio for investors

The portfolio holds 10 equity ETFs that invest in the world’s top companies.

Digital wealth management company Syfe has launched Equity100, an all-equity portfolio for investors who want to maximise their exposure to global stocks, according to an announcement.

Equity100 is said to be designed for investors who are willing to face periods of significant share price volatility to achieve higher risk-adjusted returns over the long-term.

On top of global diversification, Syfe is said to layer on a smart beta approach, which is a strategy that seeks to capitalise on certain performance factors to deliver higher risk-adjusted returns.

The portfolio holds 10 equity exchange traded funds (ETFs) that collectively invest in more than 1,500 stocks from the world’s top companies, including Microsoft, Amazon, Facebook, Walmart, Alibaba, and more.

These include SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 index; iShares Core S&P Mid Cap ETF (IJH) and iShares S&P 600 Small Cap ETF (IJR), which provide exposure to US mid-cap stocks and small-cap stocks, respectively; iShares MSCI EAFE ETF (EFA), which tracks the performance of the MSCI EAFE index; and lastly, iShares Core MSCI Emerging Markets ETF (IEMG) which tracks the performance of the MSCI Emerging Markets Investable Market Index.

Syfe has also included the Invesco QQQ ETF to track the performance of the Nasdaq-100 Index and give the Equity100 a growth and large-cap tilt.

Syfe notes that the low-volatility tilt is achieved by selecting consumer staples, healthcare, utilities, and materials as four sector ETFs, as they collectively generate the highest risk-adjusted returns for the lowest amount of volatility on a portfolio basis.

Further, the advantage of Equity100 over a DIY approach to ETF investing is cost efficiency, Syfe added. It’s $0 brokerage charge and $0 withdrawal fee is said to make the portfolio ideal for investors who wish to invest regularly. Its fees start from 0.4 percent per annum.