you choose Raiz, you choose to invest the change – it’s important for you to
understand where that change is invested, and why it is one of the best places
that it could be.
money you save with Raiz is invested in your Raiz Investment Account, which is
made up of a combination of 7 ETFs.
is an ETF? An ETF, or Exchange Traded Fund is essentially a combination of
shares or bonds which are bundled together to form one financial product. This
bundle can then be traded on the stock exchange, so the public can buy into it,
giving investors the opportunity to buy many different stocks or bonds in just
one simple transaction, at lower costs.
Example: An S&P/ASX 200 ETF holds the shares of companies that are
in the S&P/ASX 200 (200 of the largest companies on the Australian
Securities Exchange), in different weightings, so that the performance of the
ETF tracks in line with the performance of the S&P/ASX 200. The
S&P/ASX200 is the most popular benchmark for the performance of Australian
– ETFs give investors all the balance of a managed fund, without all
the fees to pay the portfolio manager
– Everyone talks about how hard it is to beat the market, instead of
trying to beat the market, ETFs let you be the market.
portfolio construction – In one transaction you can buy an ETF which
provides market exposure to Australian equities, International equities or
– ETFs allow investors to spread risk over a series of investments, as
opposed to one or two stocks or bonds. This can lessen the risk of loss, and
your exposure to a nasty swing in the price of any individual stock or bond.
no surprise that Exchange Traded Funds (ETFs) are one of the fastest growing
investment products in the world, offering investors a simple and
cost-effective way to achieve balance in their investment portfolios.
at Raiz have done the hard work for you, have selected a basket of widely
traded ETF’s that are quoted on the Australian Securities Exchange, the ones
that are designed to match well-known benchmarks and combined them into 5
different portfolios ready for your selection.