ASX Growth Portfolio: About.

Last update - 15 May 2024 By Rivkin

How does ASX Growth Work?

 

Capital Appreciation Combining Two Premium Portfolios

Designed for investors who want returns via capital appreciation rather than income.

ASX Growth is a 14-stock portfolio that combines systematic technical and fundamental analysis for a concentrated portfolio of ASX200 stocks. It combines two of our popular ASX portfolios; ASX Value and ASX Momentum, giving you the benefit of both strategies.

 

Need to Know

Goal Market Risk Combines Re-balance Horizon Minimum Suggest Investment
Growth via capital appreciation Australian High ASX Value & ASX Momentum Monthly Multi-year $2000 per stock (model uses $5000)

 

Why Follow ASX Growth?

With ASX Growth, you get the combination of two of our long-standing systematic portfolios; ASX Value which uses fundamental factors, and ASX Momentum which uses technical factors, giving you the benefit of both.

We developed this portfolio to make it easier for investors wanting to use ASX Momentum and ASX Value together as a growth portfolio with a similar return profile but lower short-term volatility than the individual portfolios.

 

How do I Follow ASX Growth?

We’ve designed this portfolio to be easy to follow with these steps:

  1. Buy: Buy the stocks in the table in equal weights. Weights can drift over time as stock prices move, but we will only recommend re-balancing stock weights if they stray too far from the target weight. The stock volumes are based on a $5,000 investment per stock.
  2. Re-balancing: When you subscribe to this portfolio, you will receive the re-balancing notification once a month which provides an updated list of stocks. You sell any stocks that are no longer on the list. After these stocks are sold, the new stocks from the current table can be bought.

Please note that the underlying portfolios remain unchanged and those members who wish to continue to follow the 10 stock portfolios can consult the portfolios at any time.

 

ASX Growth Benefits from Two Premium Portfolio Strategies

ASX Momentum ASX Value
Based purely on the performance of the stock’s share price.
We hold the stocks that have been performing the strongest over the previous 6-12 months.
Sources a pool of 30 stocks from the ASX200 based on two key financial metrics; Return on Capital Employed (ROCE), and Accrual to Assets. The final portfolio is generated by ranking on dividend yield. The lower the yield, the higher the ranking.

 


 

Important Notice:

Please note that this article contains back-tested data which shows how the model would have performed using historical data. “Backtest” results are neither an indicator nor a guarantee of future returns.
To learn more about how we calculate performance click here.

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