Up next in 10
Raiz portfolios
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Dec 15, 2023
Raiz has 8 options for you to select from, and you need to select one of them. The names don't help you decide so how do you? Start by knowing what is in each of them and how they differ. Each portfolio is made up of a group of ETFs and they vary dependant on the portfolio type. I'll take you through in this video how they are built and made or you can read along in my full article on the topic
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Hi, welcome. Today we're going to be talking about RAISE Investment Portfolio Options
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All the different options you have available for you to invest your money in when you're using the investing app for RAISE. So we're going to run through them and explain what
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they are and the differences between the two. Let's begin. So to start it, it's important to understand the number of investment options you have
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when you are using RAISE. I'm just going to log into my account, which I have, and
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go to the portfolio or investment portfolio section. To do that, this is the desktop version
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you click on the future section, and there you'll be able to go to portfolio, which shows
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you all the different options. You can only be invested in one portfolio at once, but
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you can change between the two at any stage. So even if you're just starting out and you
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pick any portfolio, you can immediately change your option there. Me, personally, I'm in a custom portfolio. We'll get more into that a bit later. But
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since the start of RAISE, they've been providing you a number of pre-built portfolios. And
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what this means is that they provide you an option, and within that option is a number
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of ETFs that they've determined the weight of and the make up of inside that. So the
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first five are very similar, conservative, moderately conservative, moderately aggressive and aggressive. Then there's Emerald, which is focused more on ethical and sustainable
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investing. Then there's Sapphire, which is an option that includes Bitcoin. For the most
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part, the ETFs within these portfolios are very similar. It's just the amount of them
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within each is the difference between a number of them there. And then, of course, you've
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got the Emerald portfolio, which has more sustainable ETFs. And Sapphire, like I said
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has some Bitcoin alongside other ETFs as well. We'll start with these first five, which
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are from conservative through to aggressive. And I'll show you just the differences between
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a few. If you go to my article on this topic, you actually are able to see a list of all
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the ETFs that are included in the portfolios. So for the most part, the ETFs are all the
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same. You've got Australian market ETFs, European ETFs, AGM ETFs, S&P 500 ETFs, Bond ETFs
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they're all the same across all the first five portfolios. It's just the amount of each
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within those portfolios that changes. So if we go here back to conservative, for example
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if you scroll down, you can see the makeup of that portfolio. So within this portfolio
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you've got seven different ETFs. Three quarters of this portfolio, though, is made up of more
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defensive bonds or cash type ETFs. So you've got 30% Australian bonds, 23% corporate bonds
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and 24% in cash. So nearly three quarters in very defensive type of ETFs there, which means your
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money's likely to be less volatile, but also you're going to get less rewards for your
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investing there. If you go up to fund level and scroll down, you'll be able to see that you've
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got the same number of ETFs here, but it's just the rating or the allocation towards each that
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is changing. So again, you've got 30 and 25 towards bonds, but they're only 9% towards money
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So that makes up just over, well, close to 60% of your portfolio being the more defensive or
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slower growing type ETFs. Then we go moderate and you'll see that this is more 50-50. So along with
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your bonds and cash, you can see a larger proportion is allocated towards more growth
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type stocks, which is the ones that I've mentioned being the Australian market ETF, the Asian live
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cap ETF, European, and then the US live cap stocks, which is the S&P 500 ETF IVV. So in this
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moderate portfolio, you'll see that the weighting is nearly 50-50 of the defensive, slower growing
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type stocks, and then the more stock focused ETFs, which are all about investing in companies
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within certain markets. Again, as we go through to more aggressive, by aggressive it means that
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it's more geared towards investing in companies and ETFs that invest in stock markets. And while
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it might be more volatility, over time you'll see more potential for growth. So here we've got the
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moderately aggressive portfolio, where you've got only just under 30% invested in
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in bonds, which are best investing in the market covering ETFs of FTW and IVV and IAA and so forth
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So this is more closely aligned to a 70-30 type portfolio. And then you've got the aggressive
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portfolio, which is really pushing, I think it's around 90-10 ratio of 90% stock ETF, 10% bond ETF
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So it's very similar to the way the superannuation funds work in that they look for
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lower growth to higher growth type portfolios. Here in red, I'm just using this naming convention
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as a way to sort of, I'll probably indicate the risk or the type of investor you might be
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So for the most part, if you are, if you do start as a conservative type investor
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just be aware that most of your money is going to be investing in very slowly growing
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assets such as bonds and cash. So it's nearly, you know, with the notion that investment rates
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are at a certain rate, you might actually be better investing in the bank. Because if you're using
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something like Ray Shor, you're looking to invest in the stock market, which is more heavily focused
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on even more aggressive type portfolio options here. So names aside, it's really all about what's
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within the options here. So you've got from right to left, you've got a 90% stocks, 70% stocks
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50% stocks, 30% stocks and around 10 or 15% stocks there. There's a different variation in those five
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The Emerald portfolio. The Emerald portfolio now has four ETFs in it because they're all focused
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on the sustainable type options there. Most of the portfolio is made up of ETFs. There's been
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RARI and ESSI. RARI is focused on Australian companies that are as socially responsible
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ESSI is focused on similar but it's more global or non-Australian type companies. So nearly 70
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there is made up of those three ETFs, which is the rest being the usual bonds and cash that you'll
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see in other portfolios. So that's the point of difference for the Emerald portfolio. It's not to
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say that it's more aggressive or more conservative than anything else. That just requires a name
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it's something that matches a colour or a diamond or a stone. So that's all that's down there
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There's the Sapphire option as well. And that is very similar, I think, to the aggressive portfolio
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The only change here being that 5% will be invested in Bitcoin. So it's on ETF
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It's the cryptocurrency itself that's invested. That allocation stays at 5% with the rest, or 95% of the portfolio investing in other
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and other mutual bonds and equities. So you can see here that it is largely skewed towards
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stocks. So you've got the live cap stocks there make out most of the portfolio
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So there's an option here if you want to invest in Bitcoin. But you can also do that if you're
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investing in a custom portfolio as well. So those seven portfolios that I've talked about already
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are all predetermined. They're built and managed by RAISE. And they just sit there and they just
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do their thing and you don't need to worry about anything else besides putting money into the app
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If you want it to be a bit more hands on, then you can try a custom portfolio. What a custom
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portfolio does is it gives you the option to invest in a number of ETFs in that portfolio
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And as you can see here, I've got my own custom portfolio. So what I've done here is I've invested
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in five different ETFs and allocated what percentages are put towards each ETF there
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If you actually go up here and edit portfolio, you can actually see the number of options you
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have available. You can see that there's quite a few, I think it's pushing 30, maybe 27 or so
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options there. And there's quite a few there ranging from your very
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quite well-known popular ETFs such as TORO or NDQ. These in there, CIO and NFD are there as well
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But you've also got the more boutique type ETFs, which are, you know, BatteryTech and Lithium
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You've got Global Cyber Security, Gold, Raise Property. Raise Property isn't actually an ETF
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it's actually a property fund that Raise made themselves. So if you wanted to add a bit of
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property in your portfolio, the natural option here. To make changes to a custom portfolio
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all you need to do is find what you want to invest in and then just scroll up and down
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this here to determine the allocation you want to put to it. So for me, as you can see
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I'm personally investing in a custom portfolio. I think it's a fantastic option for someone who
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wants to invest in a number of ETFs, but doesn't want to go through the hassle of buying and selling
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individually. Because of the nature of Raise, you can invest, you know, from $5 upwards. I mean
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you don't need to wait until you have a certain amount of money to invest in an ETF. So with the
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amount of options available, I think this is one of the best ways you can in Australia run now
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because you've got your mainstream ETF, you've got some options, you can create a really diversified
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portfolio of one or 25 different ETFs and not have to worry about, you know, trading costs and so
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forth. Raise obviously does charge a regular monthly fee. For custom portfolios, it is a bit
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higher, it's $4.50. For the other portfolios, it's $3.50. Until you get over your balance of
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$15,000, then it's a percentage of 0.275. So that's it for portfolios. You can come in here
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at any time and change your portfolio. When you do that, you can save that and then it will show you
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that it's done a rebalance. So I've just recently done a rebalance and you can see
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that it has bought and sold a few ETFs so that it's now got my portfolio in the right place and
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it matches what I've set for it in the custom portfolio. So that's how it works. It's quite
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a fast process for rebalancing and you can just do that and make a choice and get on with your life
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So I hope that helps and happy investing
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