A new exchange-traded fund (ETF) is listing on the ASX next month, specifically targeting investors with “a very high tolerance” for risk in return for massive potential growth.
BetaShares Diversified All Growth ETF (ASX: DHHF) will be released for trade on 16 December, marketed as a portfolio consisting entirely of growth assets.
The ticker DHHF is currently used by BetaShares Diversified High Growth ETF (ASX: DHHF), but after the close of trade on 15 December, the investment strategy will switch for a fresh start.
The new fund will hold 8,000 different companies from 60 exchanges, and will be agnostic on market capitalisation and country-of-origin.
“It offers investors exposure to a diversified portfolio with the potential for high growth in a single trade,” a BetaShares spokesperson told The Motley Fool.
“The target investor is an investor seeking the potential for high growth, who has a very high tolerance for risk and is willing to accept a high degree of volatility.”
Given the risky nature, the investment firm suggested younger clients with a long investment timeframe might be best suited to this new product.
Is this ETF actually ‘100% growth’?
Despite BetaShares’ claim that the fund is 100% growth, The Motley Fool understands the starting portfolio will include Australian banks like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).
Mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), which are more cyclical than growth, are also in the mix.
United States holdings include growth darlings like Apple Inc (NASDAQ: AAPL) and Amazon.com, Inc (NASDAQ: AMZN) — but also 183-year-old Procter & Gamble Co (NYSE: PG) and 134-year-old Johnson & Johnson (NYSE: JNJ).
The ETF’s holdings outside the US and Australia also raise some eyebrows, with stocks like 115-year-old Nestle SA (SWX: NESN), 124-year-old Roche Holding AG (SWX: RO) and Toyota Motor Corp (TYO: 7203) in the fold.
Afterpay Ltd (ASX: APT), Alibaba Group Holding Ltd (NYSE: BABA), Tencent Holdings Ltd (HKG: 0700), Taiwan Semiconductor Mfg Co Ltd (TPE: 2330) and JD.Com Inc (NASDAQ: JD) are also believed to be in the starting stable to actually represent growth shares.
The management fee is only 0.19% per annum, which is relatively low for an actively managed ETF.
The geographic split is 37% Australian shares and 63% overseas stocks to start with.
Betashares is the most popular ETF provider on the ASX so far this year, attracting $4.35 billion into its products to the end of October. Vanguard is not far behind, enjoying $4.33 billion of inflow.
Forget what just happened. We think this stock could be Australia’s next MONSTER IPO…
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…
Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.
See how you can find out the name of this stock
Returns as of 6th October 2020
More reading
- Could these ASX renewable energy shares benefit from the Biden win?
- Why the Kathmandu (ASX:KMD) share price could charge higher today
- Why these ASX 200 shares just hit record highs
- Is the Brickworks (ASX:BKW) share price a buy?
- 2 fantastic ASX growth shares to buy
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, and JD.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Johnson & Johnson and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon, Apple, and JD.com. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post New ‘all-growth’ ETF lists on ASX next month appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/363begt
Leave a Reply