Many investors ask the same question when exploring Stockspot portfolios: what’s the difference between the Topaz portfolios?
The Topaz range includes four investment options designed for long-term investors seeking aggressive growth:
While each portfolio has a similar overall risk level and asset allocation, they differ in their investment focus and the types of ETFs they hold.
What are the Topaz portfolios?
The Topaz portfolios are high-growth diversified portfolios designed for investors with a long-term investment horizon.
Across the Topaz range, the portfolios generally maintain a similar structure:
- Approximately 78% growth assets
- Around 22% defensive assets
Growth assets include shares from around the world, while defensive assets include investments such as government bonds and gold, which help reduce volatility during market downturns.
Although the core asset allocation is similar, each Topaz portfolio introduces different ETFs to suit their individual emphasis.
The Stockspot Topaz portfolio: core high-growth option
The Topaz portfolio is the original investment option offered by Stockspot and has been available for more than a decade.
It is designed as a balanced, diversified high-growth portfolio that provides exposure to global markets while maintaining some defensive protection.
Over the past ten years, the portfolio has delivered average annual returns of just over 10% and it is the highest growth option of the Stockspot model portfolios.
How is the Topaz portfolio structured
The Topaz portfolio includes a diversified mix of investments such as:
- Australian shares (ASX: VAS)
- Global developed market shares (ASX: IOO)
- Emerging market shares (ASX: IEM)
- Government bonds (ASX: IAF)
- Gold (ASX: GOLD)
This diversification helps spread risk across different markets and sectors.
Growth assets drive long-term returns, while defensive assets can help smooth portfolio performance during periods of market volatility.
Why might investors pick Stockspot Topaz?
The Topaz portfolio is the most widely used portfolio among Stockspot clients.
More than a third of client assets are invested in this portfolio because it offers a simple and well diversified approach to long-term investing.
This portfolio may suit investors who:
- Want a straightforward long-term investment strategy
- Prefer broad global diversification
- Do not want to choose between specialised themes
- Have a long investment horizon
For many investors, the core Topaz portfolio provides a solid foundation for long-term wealth creation.
The Stockspot Topaz Sustainable portfolio
The Topaz sustainable portfolio has the same level of risk and similar asset allocation as the core Topaz portfolio.
The main difference is how the equity exposure is implemented.
Instead of using traditional market-capitalisation index ETFs, the sustainable portfolio uses ESG-focused ETFs.
What does ESG focused investing mean?
ESG stands for environmental, social, and governance. ESG investing applies screening methods to avoid or reduce exposure to companies involved in certain industries or practices.
Examples may include companies linked to:
- Fossil fuels
- Tobacco
- Controversial weapons
- Severe environmental harm
These ETFs aim to provide exposure to companies that meet certain sustainability criteria. Chosen sustainable ETFs include FAIR, ETHI and ESGI.
Why has ESG investing grown?
Over the past decade, ESG investing has experienced global growth.
Investors may want their portfolios to reflect their personal values as well as their financial goals.
Sustainable investing allows individuals to pursue long-term returns while considering environmental and social factors.
Why might investors pick the Stockspot Topaz Sustainable portfolio?
The Topaz sustainable portfolio may appeal to investors who:
- Want to align their investments with personal values
- Prefer ESG screened investments
- still want diversification and growth potential
- Want a portfolio with a similar risk profile to the core Topaz strategy
It provides a way to pursue long-term investing while incorporating ethical and sustainability considerations.
The Stockspot Topaz Income portfolio
The Topaz income portfolio was launched in October 2023 in response to demand from investors seeking more regular income from their investments.
Like the other Topaz portfolios, it maintains a similar risk profile and asset allocation.
However, it emphasises investments that historically generate a higher proportion of returns through income distributions.
How does the Stockspot Topaz Income strategy work?
The Topaz Income portfolio includes ETFs that focus more heavily on:
- Dividend-paying shares
- Income-oriented equity strategies
- Assets that produce consistent distributions
As a result, investors may receive higher regular income through dividends and ETF distributions. Chosen income generating ETFs include VHY, VSO, OZR, WDIV, VACF and REIT.
Is there a trade-off between income and growth?
When a portfolio produces more of its returns through income, there is often a trade-off.
Higher dividend yields can mean slightly lower capital growth, but similar total returns over the long term.
Total return combines both income and capital growth, so the overall performance may remain comparable to other portfolios with similar risk.
Why might investors pick the Stockspot Income portfolio?
Income-focused portfolios are particularly valuable for investors who want regular cash flow from their investments.
This can reduce the need to sell assets to generate income.
The Topaz Income portfolio may suit investors who:
- Are approaching or already in retirement looking for additional income
- Want regular portfolio distributions
- Prefer income over capital growth
- Want to minimise selling investments for cash flow
For many, receiving income from dividends and distributions can make managing withdrawals easier.
The Stockspot Topaz Inflation portfolio
The Topaz inflation portfolio is designed for periods of structurally higher inflation or rising inflation expectations.
Inflation reduces the purchasing power of money over time, which can affect investment returns.
This portfolio includes higher exposure to assets that have historically performed better than traditional assets like diversified shares and bonds during periods of structurally higher inflation.
The Topaz Inflation portfolio includes allocations to:
- Gold (GOLD)
- Silver (ETPMAG)
- Gold mining companies (GDX)
- Resource sector shares (OZR)
- Infrastructure assets (IFRA)
These investments are often referred to as hard assets because unlike financial assets like shares and bonds, they are physical assets.
Stockspot Topaz Inflation: recent performance example
During 2025, inflation-related assets experienced a strong rally.
Gold, silver and mining companies performed exceptionally well, which resulted in the Topaz inflation portfolio delivering around 50% return in that year.
However, such returns should be viewed as unusual rather than typical. Inflation-focused assets can also experience periods of weaker performance during different inflation environments. .
Because the portfolio has a higher concentration in certain asset classes, it can be more volatile than the core Topaz portfolio. Periods of strong gains may be followed by periods of lower returns.
Common questions on the Topaz Inflation portfolio have been answered in the blog ‘your questions answered’.
Investors considering this strategy should ideally have a minimum time horizon of seven years. A longer investment horizon helps smooth out market cycles and volatility.
Why might investors pick the Stockspot Topaz Inflation portfolio?
The Topaz inflation portfolio may suit investors who:
- Want protection against inflation
- Prefer exposure to hard assets
- Are comfortable with higher volatility
- Want diversification beyond traditional equity markets
It can be particularly attractive for investors concerned about long-term purchasing power.
How do the Topaz portfolios compare?
While the portfolios share similar risk levels, each has a different focus.
| Portfolio | Primary focus | Key difference |
| Topaz | Diversified growth | Broad market ETFs |
| Topaz Sustainable | ESG investing | Sustainability-factor screened ETFs |
| Topaz Income | Higher portion of total return coming from income | Dividend-focused ETFs |
| Topaz Inflation | Higher level of inflation protection | Higher exposure to hard assets like gold and silver |
Each option is designed to suit different priorities while maintaining a high-growth investment framework.
Selecting the right portfolio depends on your financial goals, preferences and time horizon. All four portfolios are designed for investors with a long-term outlook and tolerance for market volatility. A minimum investment horizon of around seven years is typically recommended.
The Topaz portfolios provide several approaches to long-term investing while maintaining a similar core structure.
The key differences relate to investment themes rather than risk levels.
In summary:
- The Topaz portfolio is the core diversified option
- The Topaz sustainable portfolio focuses on ESG investing
- The Topaz income portfolio prioritises dividend income
- The Topaz inflation portfolio increases exposure to hard assets
Understanding these differences can help investors choose the strategy that best matches their financial objectives and personal preferences.
