In the middle of 2024, Slack Investor had some cash from the sale of Altium (ALU) that needed investing. He had spread the amount into buying into some companies that he already had (TNE, CAR, SNL, NDQ, PME, TLX). He also brought in some new blood (WEB, MP1, NCK, RMD, JNDQ, BOT, RUL, DHHF). The new companies were picked because he hoped that they were in the ‘growing stage’ – to replace the growth superstar ALU.
As with most things, some have worked well – and some not so well. The real duds were associated with Webjet (WEB) and its subsequent spin-offs. He also dumped his small holding of Megaport (MP1) – but, he is now having a rethink about MP1. As the Slack Portfolio is fully invested at the moment, to buy something, he must first sell something.
BetaShares Diversified All Growth ETF (DHHF)
This was the last thing that Slack Investor bought on his 2024 buying spree and, to be honest, he didn’t look to0 deeply into it. Slack Investor was initially impressed by the simplicity of an ‘all growth’ ETF at a low management fee (0.19%). DHHF has done very well since purchase (+11%). The ETF is certainly diversified but, he is wondering whether the ‘All Growth’, as it says on the label, means that it is ‘growing’.
DHHF is a bundle of four low cost funds. The funds are:
- Vanguard Total Stock Market ETF (VTI)
- Betashares Australia 200 ETF (A200)
- SPDR Portfolio Developed World (SPDW)
- SPDR Portfolio Emerging Market (SPEM)
The percentage allocation, on 24/01/2024, with the Management Expense Ratio (MER) of the underlying funds is shown below. Betashares have done a good job to ensure the underlying funds have very low fees (MER).
| ETF | % Allocation | MER (%) |
| VTI | 42.0 | 0.03 |
| A200 | 37.1 | 0.04 |
| SPDW | 15.0 | 0.03 |
| SPEM | 5.7 | 0.07 |
Slack Investor must admit to a misunderstanding when he bought DHHF – he thought All Growth meant he was buying a selection of growing companies. It is only when he read the accompanying Product Disclosure Statement that he realised that All Growth was in reference to the fund being almost 100% in growth assets (shares or property). They are using All Growth as a descriptor to investing style. The All growth assets make this fund suitable for those who have a high tolerance for risk. Betashares recommend a holding period of at least 7 years.
Does Growth mean Growing?
Not necessarily. This can be confusing – it was for Slack Investor! He has been guilty of using these terms interchangeably. Growth can be used as an investment style description – indicating the asset mix and amount of risk. The more shares and property in the mix, the higher the risk (chance of negative returns). According to Investsmart, typical mixes for funds are:
- High Growth: around 100% in shares or property.
- Growth: around 85% in shares or property, and 15% in fixed interest or cash.
- Balanced: around 70% in shares or property, and 30% in fixed interest and cash.
- Conservative: around 30% in shares and property, and 70% in fixed interest and cash.
- Cash: 100% in bank deposits or ‘capital guaranteed’ products.
Of course, Slack Investor should have fully read the DHHF PDS before his purchase – a rookie error! Because he also has a stable income portfolio, the ‘riskiness’ of DHHF didn’t bother Slack Investor. However, his favourite companies to fill the Slack Portfolio are those that are have earnings that are actually growing or, are projected to grow, at least 10%.
A big portion of DHHF consists of the ASX 200 (37.1%). Slack Investor owns a small holding of the Australian Index and, he acknowledges that it is a fantastic part of any income portfolio – as it is a great source of dividend imputation income. However, he has never really been a big fan of the ASX 200 in the growth-based (or, should I say, growing-based) Slack Portfolio.
The ASX 200 is a mixture of ‘Duds’ (shrinking companies, decreasing earnings), mature companies (companies in steady state – earning but not really growing) and, companies that are increasing earnings and actually growing.
In the ASX 200, seven of the top ten holdings are either banks or mining companies – these types of companies are not known for growing every year at above 10%. For example, the top ASX 200 holding is the Commonwealth Bank (CBA). According to the Market Screener site, CBA’s 2024 Earnings Per Share (EPS) growth was -4%. For 2025 and 2026, growth is projected to be 5% and then 3% p.a.
Slack Investor rates Betashares DHHF to be an excellent ETF for diversified share exposure at a relatively cheap cost. It definitely qualifies as High Growth as it consists of nearly 100% in shares or property. However, Slack Investor would rather concentrate on companies that are actually growing. He will sell DHHF and use the cash to buy something else.
January 2025 – End of month update
Slack Investor is IN for Australian index shares, the US Index S&P 500 and the FTSE 100.
The new year has started well, particularly for the UK and Australia where, the FTSE 100 is up 6.1 %, and the ASX 200 up 4.6% in January.
The S&P 500 (+2.7%) is relatively subdued after the monster 25% gains of 2024.
All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).
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