Global ETF Leaders Model Portfolio
A model portfolio suitable for investors seeking geographical diversification using global listed equities.
Performance
| CAGR | 6 months | 1 year | 2 years |
29/01/26 |
| Global Equity ETFs | 32.89% | 15.22% | 22.65% | 20.85% |
| Benchmark | 15.31% | 8.90% | 20.47% | 19.78% |
NOTE: past performance does not guarantee future performance. All investments are at risk.
Details:
| Asset Category: | Global Equity ETFs |
| Objective: | To outperform the risk adjusted return of the benchmark before any fees. |
| Investor suitability: | Investors seeking global equity diversification using listed funds. |
| Benchmark: | Vanguard FTSE All-World UCITS ETF |
| Timeframe: | 5-7 years |
| Holdings universe:: | Australian and US listed ETFs with global coverage |
| Number of holdings: | 5 |
| Inception date: | 3 October 2022 |
| Age: | 3.32 years |
| Re-Optimisation frequency: | Quarterly, using Diversiview Optimisation Tool |
| CAGR - as of performance update date: | 20.85% (benchmark 19.78%) |
Why Global Equities?
In today’s interconnected world, investors face both opportunities and risks that span continents. Markets move for different reasons — growth in the U.S., policy shifts in China, or geopolitical tensions in Europe — and these forces rarely align. That’s why diversification through low-correlated global exchange-traded funds (ETFs) is such an effective way to balance exposure and manage risk.
Investing in several ETFs that represent different countries, industries, and asset classes helps reduce dependence on any single market’s performance. When one region underperforms, another may thrive — for instance, strength in Asian consumer markets can offset weakness in U.S. technology stocks. This “offset effect” is driven by low correlation: when assets don’t move in the same direction at the same time, overall portfolio volatility decreases.
Global ETFs make this strategy practical and accessible. They allow investors to tap into growth across developed and emerging markets, gain targeted sector exposure, and benefit from diverse economic cycles — all within a single portfolio. By spreading investments across uncorrelated regions and industries, investors can capture global opportunities while softening the impact of local downturns.
Ultimately, investing in a mix of low-correlated global ETFs allows investors to turn market diversity into an advantage — capturing worldwide growth potential while managing risk more intelligently.
Portfolio Strategy
Quant driven investment selection has been used to identify the 5 holdings in the Diversified Global Equity Leaders Model Portfolio. These are well known, liquid listed global ETFs that also have low correlations between themselves, to ensure even more diversification.
This portfolio strategy combines 5 global, highly diversified ETFs and Managed Funds listed in Australia and US, with a combined coverage of 1275 unique securities across 35 countries.
Benchmark
Due to the wide coverage of the Global ETF Leaders as show in the map below, and the sizeable portion of US securities within the portfolio, Vanguard FTSE All-World UCITS ETF (LSE:WRLP, accumulating fund) was selected as the most appropriate benchmark for this model portfolio.
WRLP has a similar size and weightage of US stocks within the ETF, and it is also one of the most popular global ETFs.
Data and Calculations
The securities pricing data was sourced from the respective exchanges via our data provider.
For Australian securities, pricing data was converted to USD. Daily FX rates were sourced from the Reserve Bank of Australia.
The Diversiview Optimiser has been used to calculate the Optimal Portfolio* allocation on a quarterly basis, starting from 3/10/2022.
* Optimal Portfolio position is the one that maximises the portfolio expected return and minimises the portfolio volatility at the same time.
For quarterly re-optimisations, we assumed a brokerage fee of US$3 for all buy/sell transactions. If you use a broker who has higher brokerage fees, the performance results would be different.
Re-optimisation and Updates
Regular re-optimisation of the asset allocation is initiated every quarter and notifications of portfolio exposure changes are sent to the subscribers.
This is not a recommendation but a re-analysis of the portfolio strategy. Subscribers are at liberty to decide whether this strategy suits their risk appetite and whether they want to act or not on the changes in the portfolio asset allocation.
If they choose to action the changes in the strategy, subscribers need to execute the trades themselves through a broker of their choice.
Potential Risks
While global ETFs offer diversification and broader growth opportunities, they are not without risks. Investors should be aware of several factors that can influence performance and volatility.
Market volatility remains a fundamental risk: global ETFs can still fluctuate with overall market sentiment or sudden global events. Even well-diversified portfolios may experience temporary declines when multiple markets move together during periods of high uncertainty.
Currency risk is another important consideration. Returns on ETFs that hold assets in foreign currencies can be affected by exchange rate movements.
Country and geopolitical risks also play a role. Political instability, regulatory changes, or economic slowdowns in specific regions can impact ETFs focused on those markets. Emerging markets, while offering higher growth potential, often carry higher volatility and less transparency.
Tax notice
If you subscribe to the portfolio and buy the securities in this portfolio strategy, you may incur CGT at the time of the quarterly re-optimisation. The actual percentage will be dependent on the regulations and tax income bracket in your own country. In many countries the CGT rate is discounted by 50% if you hold the investments for at least 12 months.
Please consult your tax advisor for more information and professional advice.
Disclaimer
The content on this website and in any of its applications is not a financial offer, recommendation, or advice to engage in any transaction. Investment products referenced in our software or marketing literature carry inherent risks, and you should note that past performance does not guarantee any future results.