Strategy
Australia

ASX Growth Portfolio

15 Jun 2021
By
The ASX Growth Portfolio is a 14-stock portfolio. The investment objective for this portfolio is to achieve returns through capital appreciation rather than income. The portfolio is a combination of two systematic strategies that have been used by Rivkin investors over 5 years - ASX Value and ASX Momentum.

Minimum Investment Amount and Period

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Stock codeStock nameSectorCurrent priceReturn 12mMom rank
NVDA
NVIDIA Corp
Information Technology
$549.46214.71%
1
AMD
Advanced Micro Devices Inc
Information Technology
$84.48199.75%
2
DXCM
DexCom Inc
Health Care
$374.89177.95%
3
ETSY
Etsy Inc
Consumer Discretionary
$134.56144.28%
4
AAPL
Apple Inc
Information Technology
$113.16113.35%
5
REGN
Regeneron Pharmaceuticals Inc
Health Care
$581.64107.25%
6
SWKS
Skyworks Solutions Inc
Information Technology
$147.27101.64%
7
WST
West Pharmaceutical Services I
Health Care
$290.33100.43%
8
NOW
ServiceNow Inc
Information Technology
$491.5499.52%
9
PYPL
PayPal Holdings Inc
Information Technology
$191.6697.47%
10
NFLX
Netflix Inc
Communication Services
$505.8796.81%
11
QRVO
Qorvo Inc
Information Technology
$131.0889.28%
12
AMZN
Amazon.com Inc
Consumer Discretionary
$3,099.9688.02%
13
ADBE
Adobe Inc
Information Technology
$478.9887.32%
14
CTLT
Catalent Inc
Health Care
$88.8583.45%
15

*Quantities used on the tables are based on investing $5,000 per stock on the entry date

ASX Growth Portfolio

Method Systematic
Goal Growth
Market ASX
Risk High
Rebalance Once a month
Horizon Multi-year
Minimum Suggested Investment $2000 per stock (model uses $5000)

 

Over the years, we have realized that Rivkin Investors have been using ASX Momentum and ASX Value strategies together to have a growth portfolio with a similar return profile but lower short term volatility than the individual strategies. As a result, starting from November 2020, we have aligned these 2 strategies re-balance dates set up a 14 stock portfolio to make it easier for our members to implement.

The ASX Momentum strategy is based purely on the performance of the stock’s share price, whereby we hold the stocks that have been performing the strongest over the prior six to 12 months. On the other hand, the ASX Value strategy sources a pool of 30 stocks from the ASX200 based on two key financial metrics, being Return on Capital Employed (ROCE), and Accrual to Assets, from which the final portfolio is generated by ranking on dividend yield, whereby the lower the yield, the higher the ranking.

In general terms, Value uses fundamental factors, while the Momentum strategy uses technical factors. If you want to know about individual strategies and how they work, please use the following links.

Click here to learn more about our ASX Momentum strategy.

Click here to learn more about our ASX Value strategy.

How To Follow this Portfolio

To follow the ASX Growth portfolio, investors need to buy the stocks in the above table in equal weights. Weights can drift over time as stock prices move, but we only recommend re-balancing stock weights if they stray too far from the target weight. The stock volumes shown in this table are based on a $5,000 investment per stock.

Once per month, the list of stocks will be updated in what we call a ‘re-balance’. This means investors will need to look at the new list and 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 underlining strategies remain unchanged and those members who wish to continue to follow the 10 stock portfolios, can consult the strategies at any time.

If you have any questions, please contact us at [email protected]

Important notice:

Quantities and calculations in this post use the Rivkin Model and might differ from yours. This post does not constitute an invitation to buy or sell any securities. Before conducting any transaction, make sure you fully understand the terms of the product and the relevant risk factors involved. You can seek professional advice to determine the appropriateness and cost of any transaction from the broker you use.

SHOW COMMENTS / QUESTIONS (4)

4
Comments

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Peter W.

JHX was a sell in your December recommendation

Oliver Gordon

Hi Peter,

Apologies for the mistake. The stocks to sell from the ASX Growth portfolio are Wisetech Global (WTC), and Charter Hall (CHC). The table is correct, and I have just updated the text. You are correct that James Hardie (JHX) was sold in December. The mistake came about as JHX was sold from the 10 stock ASX Momentum portfolio this month.

Regards, Oliver

Glenn B.

Hi

It doesn’t appear that James Hardie Industries (JHX) was in Growth in Dec 20?

Rgds

Oliver Gordon

Thanks Glenn,

Yes you are correct. Please see my response to Peter above. I have amended the text.

Regards, Oliver

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