12-month change in the value of Raiz holdings: explained
If you are new to investing, and charts are not your thing, fear not! Raiz is here to explain what this chart means, and how it shows what has happened with the products we invest in on your behalf.
What do the coloured bars mean for each ETF?
The chart shows the financial return that every ETF held in Raiz portfolios has generated in the past 12 months (not including their dividend returns). These ETFs aim to track the performance of equity and bond indices globally. For example, the STW ETF aims to track the performance of the S&P/ASX200 Index, the Top 200 public companies listed on the Australian Stock Exchange.
The chart also shows how Bitcoin has performed over the last twelve months, which makes up 5 percent of the Sapphire Portfolio and is available in the Custom Portfolio for a holding of up to 5 percent.
If an ETF is showing a green bar to the right of vertical line, that means the price of the ETF is higher than it was a year ago. On the flipside, an ETF showing an orange bar to the left of the vertical line has experienced a decrease in price over the past twelve months. The size of the move is shown as a percentage to the side of each coloured bar.
Please remember the charts only show the price performance of the ETF, not the total performance – total performance would include dividends.
Why do we use 12 month returns in the chart?
There is no perfect time length to use to reflect a return. But given the Raiz philosophy is to save and invest small amounts for the medium and long term, we think it makes sense to show a length of time longer than days, weeks or a few months.
Want to see a timeframe different to twelve months for market returns?
No problem! Just go into the App and navigate to the performance graph. Swiping left will bring up the ETFs held in your portfolio, and if you tap on them you can choose to see their returns ranging from daily, monthly, three monthly, six monthly, or yearly.
Market movements impact returns
The fact that there are some ETFs with positive returns and some with negative returns shows that markets move up and down and are subject to the economic situation in the world. Focussing on the long-term and investing regularly means you can block out the shorter term noise and focus on your goals.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.
You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.
We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.
A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.
The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can’t promise that the information is accurate, or stays accurate.
Any opinions or information expressed are subject to change without notice; that’s just the way we roll.
The bundll and superbundll products are provided by FlexiCards Australia Pty Ltd ABN 31 099 651 877 Australian credit licence number 247415. Bundll, snooze and superbundll are trademarks of Flexirent Capital Pty Ltd, a subsidiary of FlexiGroup Limited. Lots of names, which basically you aren’t allowed to reproduce without their permission and we need to include here.
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Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.
Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).