What’s in the Stockspot portfolios?

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The Stockspot ETF model portfolios comprise of underlying investments in over 1,400 shares and bonds from Australia and around the world. We spread our clients’ portfolios across thousands of stocks to help reduce risk and balance out companies having inevitable bad years with others doing well. This has helped the Stockspot model portfolios significantly outperform broad Australian shares over the past 12 and 18 months.

We take a look into how the investments are spread across regions, sectors and individual holdings to help our clients achieve their goals.

Investments by region

All of the Stockspot model portfolios presently have between 65% and 75% of their holdings in Australian shares and bonds. This helps to limit the impact of short-term currency movements on the overall portfolio value.

An allocation to overseas investments is also important to reduce the reliance on Australia and benefit from other economies which may be performing well when Australian companies are not. The second highest country allocation after Australia is the US at 4.7% to 9.2% of the portfolios, followed by Asia (ex China), Europe and then China.

  • Topaz
    Australia 65.0%
    US 9.2%
    China 2.5%
    Asia ex-China 4.8%
    UK 1.6%
    Europe ex-UK 3.4%
    Other 13.6%

  • Emerald
    Australia 74.8%
    US 5.1%
    China 1.7%
    Asia ex-China 3.4%
    UK 0.9%
    Europe ex-UK 1.9%
    Other 12.2%

  • Turquoise
    Australia 74.7%
    US 4.9%
    China 1.8%
    Asia ex-China 3.2%
    UK 0.9%
    Europe ex-UK 1.8%
    Other 12.7%

  • Sapphire
    Australia 71.2%
    US 4.7%
    China 2.8%
    Asia ex-China 5.2%
    UK 0.8%
    Europe ex-UK 1.8%
    Other 13.5%

  • Amethyst
    Australia 68.6%
    US 5.2%
    China 3.3%
    Asia ex-China 6.0%
    UK 0.9%
    Europe ex-UK 1.9%
    Other 14.1%

Between 2010 and 2015, most global share markets performed better than Australian shares. This has has benefited those with an international allocation in their portfolio. Even when Australian shares start to perform well again, owning some international shares helps reduce the overall risk.

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Investments by sector

Stockspot clients own shares and bonds across a broad range of sectors.

Financials companies make-up the largest single sector of the Topaz, Emerald and Turquoise portfolios. On the other hand, Government and Treasury bonds are the largest components of the more conservative Sapphire and Amethyst portfolios. An allocation to global shares means that the Healthcare and Information Technology sectors feature in the Stockspot strategies more than they would in most Australian-only portfolios.

Our 10% allocation to gold across all of the strategies helps to reduce risk and steady returns during times of market turmoil.

Top holdings

The higher-growth portfolios (Topaz and Emerald) include a majority of Australian shares in their top 20 holdings, plus several bonds and global shares including Apple and Microsoft. As the portfolios get more conservative, towards Sapphire and Amethyst, they contain higher number of Government and Treasury bonds as part of their top 20 holdings.

  • Topaz
    Commonwealth Bank Of Australia 4.93%
    Westpac Banking Corp 3.88%
    Australia And New Zealand Banking Group Ltd 2.84%
    National Australia Bank Ltd 2.80%
    Telstra Corp Ltd 2.38%
    CSL Ltd 1.69%
    Wesfarmers Ltd 1.56%
    Woolworths Ltd 1.09%
    Macquarie Group Ltd 0.99%
    Apple Inc 0.94%
    Woodside Petroleum Ltd 0.78%
    Scentre Group 0.78%
    Microsoft Corp 0.73%
    Transurban Group 0.72%
    Rio Tinto Ltd 0.71%
    Westfield Corp 0.66%
    AMP Ltd 0.63%
    Suncorp Group Ltd 0.63%
    Brambles Ltd 0.62%
    QBE Insurance Group 0.62%

  • Emerald
    Commonwealth Bank Of Australia 4.69%
    Westpac Banking Corp 3.70%
    Australia And New Zealand Banking Group Ltd 2.70%
    National Australia Bank Ltd 2.67%
    Telstra Corp Ltd 2.27%
    CSL Ltd 1.61%
    Wesfarmers Ltd 1.48%
    Woolworths Ltd 1.04%
    Macquarie Group Ltd 0.94%
    Australia (Commonwealth Of) 3.25% 21 Apr 2025 AAA 0.82%
    Australia (Commonwealth Of) 5.75% 15 May 2021 AAAA 0.82%
    Australia (Commonwealth Of) Regs 4.25% 21 Apr 2026 AAA 0.81%
    Australia (Commonwealth Of) 5.5% 21 Apr 2023 AAA 0.81%
    Australia (Commonwealth Of) Regs 4.75% 21 Apr 2027 AAA 0.80%
    Australia (Commonwealth Of) 5.25% 15 Mar 2019 AAA 0.79%
    Australia (Commonwealth Of) 2.75% 21 Apr 2024 AAA 0.78%
    Australia (Commonwealth Of) 4.5% 15 Apr 2020 AAA 0.76%
    Australia (Commonwealth Of) 5.75% 15 Jul 2022 AAA 0.74%
    Woodside Petroleum Ltd 0.74%
    Scentre Group 0.74%

  • Turquoise
    Commonwealth Bank Of Australia 3.68%
    Westpac Banking Corp 2.90%
    Australia And New Zealand Banking Group Ltd 2.12%
    National Australia Bank Ltd 2.09%
    Telstra Corp Ltd 1.78%
    CSL Ltd 1.26%
    Wesfarmers Ltd 1.16%
    Australia (Commonwealth Of) 3.25% 21 Apr 2025 AAA 1.13%
    Australia (Commonwealth Of) 5.75% 15 May 2021 AAA 1.13%
    Australia (Commonwealth Of) Regs 4.25% 21 Apr 2026 AAA 1.11%
    Australia (Commonwealth Of) 5.5% 21 Apr 2023 AAA 1.11%
    Australia (Commonwealth Of) Regs 4.75% 21 Apr 2027 AAA 1.08%
    Australia (Commonwealth Of) 5.25% 15 Mar 2019 AAA 1.08%
    Australia (Commonwealth Of) 4.5% 15 Apr 2020 AAA 1.04%
    Australia (Commonwealth Of) 5.75% 15 Jul 2022 AAA 1.02%
    Australia (Commonwealth Of) 6% 15 Feb 2017 AAA 0.98%
    Australia (Commonwealth Of) 5.5% 21 Jan 2018 AAA 0.95%
    Australia (Commonwealth Of) 4.25% 21 Jul 2017 AAA 0.83%
    Australia (Commonwealth Of) 4.75% 15 Jun 2016 AAA 0.82%

  • Sapphire
    Commonwealth Bank Of Australia 2.73%
    Westpac Banking Corp 2.15%
    Australia And New Zealand Banking Group Ltd 1.57%
    National Australia Bank Ltd 1.55%
    Telstra Corp Ltd 1.32%
    Australia (Commonwealth Of) 3.25% 21 Apr 2025 AAA 1.32%
    Australia (Commonwealth Of) 5.75% 15 May 2021 AAA 1.31%
    Australia (Commonwealth Of) Regs 4.25% 21 Apr 2026 AAA 1.29%
    Australia (Commonwealth Of) 5.5% 21 Apr 2023 AAA 1.29%
    Australia (Commonwealth Of) Regs 4.75% 21 Apr 2027 AAA 1.28%
    Australia (Commonwealth Of) 5.25% 15 Mar 2019 AAA 1.26%
    Australia (Commonwealth Of) 2.75% 21 Apr 2024 AAA 1.25%
    Australia (Commonwealth Of) 4.5% 15 Apr 2020 AAA 1.21%
    Australia (Commonwealth Of) 5.75% 15 Jul 2022 AAA 1.19%
    Australia (Commonwealth Of) 6% 15 Feb 2017 AAA 1.14%
    Australia (Commonwealth Of) 5.5% 21 Jan 2018 AAA 1.10%
    Australia (Commonwealth Of) 4.25% 21 Jul 2017 AAA 0.96%
    Australia (Commonwealth Of) 4.75% 15 Jun 2016 AAA 0.95%
    CSL Ltd 0.94%
    Australia (Commonwealth Of) 2.75% 21 Oct 2019 AAA 0.91%

  • Amethyst
    Commonwealth Bank Of Australia 1.83%
    Australia (Commonwealth Of) 3.25% 21 Apr 2025 AAA 1.52%
    Australia (Commonwealth Of) 5.75% 15 May 2021 AAA 1.51%
    Australia (Commonwealth Of) Regs 4.25% 21 Apr 2026 AAA 1.49%
    Australia (Commonwealth Of) 5.5% 21 Apr 2023 AAA 1.48%
    Australia (Commonwealth Of) Regs 4.75% 21 Apr 2027 AAA 1.47%
    Australia (Commonwealth Of) 5.25% 15 Mar 2019 AAA 1.45%
    Westpac Banking Corp 1.44%
    Australia (Commonwealth Of) 2.75% 21 Apr 2024 AAA 1.44%
    Australia (Commonwealth Of) 4.5% 15 Apr 2020 AAA 1.40%
    Australia (Commonwealth Of) 5.75% 15 Jul 2022 AAA 1.37%
    Australia (Commonwealth Of) 6% 15 Feb 2017 AAA 1.31%
    Australia (Commonwealth Of) 5.5% 21 Jan 2018 AAA 1.27%
    Australia (Commonwealth Of) 4.25% 21 Jul 2017 AAA 1.11%
    Australia (Commonwealth Of) 4.75% 15 Jun 2016 AAA 1.09%
    Australia And New Zealand Banking Group Ltd 1.06%
    Australia (Commonwealth Of) 2.75% 21 Oct 2019 AAA 1.05%
    National Australia Bank Ltd 1.04%
    Australia (Commonwealth Of) 3.25% 21 Oct 2018 AAA 1.04%
    Telstra Corp Ltd 0.89%

Key metrics

The Stockspot model portfolios distributed between 3.18% and 3.99% in dividends, interest and franking credits in 2015. As at 10 February 2016, the historical distribution yield of the Australian share ETF (VAS) is 5.7% compared to the distribution yield of the Australian bond ETF (IAF) which is 3.6%. The fees, P/E ratios and P/B ratios are largely consistent across the 5 portfolios.

Portfolio ETF fees p.a. Distribution yield p.a. Price Earnings (P/E) Ratio Price to Book (P/B) Ratio
Topaz 0.28% 3.99% 18.1x 2.0x
Emerald 0.26% 3.96% 18.4x 2.0x
Turquoise 0.27% 3.71% 18.3x 2.0x
Sapphire 0.29% 3.43% 18.3x 2.1x
Amethyst 0.31% 3.18% 18.2x 2.3x

 

Grow your savings the smart way

Stockspot is Australia’s largest digital investment adviser. We can help you build and manage a personalised portfolio tailored to your financial situation and your goals. It’s professional investment advice without the high costs of seeing a human adviser.

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Main image: Don DeBold via Flickr

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Chris Brycki

Stockspot Founder and CEO

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