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In an ETF portfolio, true balance is golden

BetaShares’ Growth Portfolio has been designed for those seeking reasonably high long-run returns from growth assets, and includes a 10 per cent ‘alternatives’ allocation to commodities for added diversification.

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The ideal model portfolio for an investor naturally depends on their goals and risk profile.

The portfolio proposed here is BetaShares’ Growth Portfolio, which has been designed for those seeking reasonably high long-run returns from growth assets, albeit with some desire to dampen short-run portfolio volatility through a modest allocation to asset classes with defensive and high diversification qualities.

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David Bassanese is chief economist at BetaShares Exchange Traded Funds. He writes on markets specialising in debt, derivatives and monetary policy. He worked at the federal Treasury, OECD and Macquarie Bank. Connect with David on Twitter.

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    Original URL: https://www.afr.com/wealth/in-an-etf-portfolio-true-balance-is-golden-20141210-123pq0