Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 1: Hello, and welcome to She's on the Money, the podcast
Speaker 1: Millennials who Want Financial Freedom. My name is Jessica Ricky,
Speaker 1: and today I have financial expert Victoria Devine. Hello, we're
Speaker 1: here to talk about ETFs in their performance. Oh my gosh,
Speaker 1: she is pum Yeah. I got to do research for
Speaker 1: this and I have brought it to the table with
Speaker 1: the end of the year at our doorstep and with
Speaker 1: how many of our community are now on their own
Speaker 1: investing journeys. Today on the show, we wanted to do
Speaker 1: a wrap of the five best performing asx ETFs from
Speaker 1: the last financial year. I mean, we use a stretch.
Speaker 1: I really wanted to do that this. Jessica Ricci was like,
Speaker 1: I don't know about that content, and I was like,
Speaker 1: I really want to do the content, and I feel
Speaker 1: like there is might be niche. But there is a
Speaker 1: group of people who really like this content too, because
Speaker 1: last time we did one last year it kind of
Speaker 1: blew up in my DMS and people like, oh my gosh,
Speaker 1: thank you so much for talking about these or thanks
Speaker 1: so much for having more honest, open conversations about ETF's
Speaker 1: an actual product. And I'm excited to do this today.
Speaker 1: Before we get into it, I know we've said it
Speaker 1: a million time, but in case this is the first
Speaker 1: episode you've ever listened to, and ETF is a basket
Speaker 1: of shares, is how Victoria ax refreshed. She's a little basket.
Speaker 1: Might be Wiker that's in at the moment, it might
Speaker 1: be kin, it might be a picnic basket, but it
Speaker 1: is a basket of lots of different assets that give
Speaker 1: you instant diversification. But to go to your point, jess
Speaker 1: that you just made if this is your first Cheese
Speaker 1: on the Money episode, fantastic, welcome to our family. We
Speaker 1: are so excited to have you. But quick fact check here.
Speaker 1: If you're not on your investing journey yet, or maybe
Speaker 1: investing feels completely overwhelming, this episode is definitely going to
Speaker 1: make that worse. So I would go back and listen
Speaker 1: to one of our two investing series that will give
Speaker 1: you the basics of absolutely everything you know, so when
Speaker 1: you listen to this, it doesn't sound overwhelming. And then
Speaker 1: for this She's on the Money community that are absolutely
Speaker 1: across this one. We're really excited to do this. But two,
Speaker 1: don't feel overwhelmed. If you're like, oh, she's talking about
Speaker 1: stuff I've never heard. We are just going to make
Speaker 1: it common knowledge. We are going to talk about these
Speaker 1: things more often on the She's on the Money pod
Speaker 1: this year and next year, because I just think there's
Speaker 1: lots of change going on at the moment, and it
Speaker 1: makes it so much easier for us to be able
Speaker 1: to openly and honestly talk about product and just have
Speaker 1: a good band about what it means and how it works.
Speaker 1: And I think that these types of conversations are quite constructive.
Speaker 1: When you guys are picking assets that are going to
Speaker 1: go into your portfolio in saying that before I really
Speaker 1: get into the crux of the five ETFs that I'm
Speaker 1: going to present to you today, Miss Jesso Ricci, in
Speaker 1: true compliance form, Jessica, past performance is not a reliable
Speaker 1: predictor of future performance, and you should seek personal financial
Speaker 1: advice should you wish to make a decision based upon
Speaker 1: any information that you hear today. Yeah, and this is
Speaker 1: something we touched on last year, which I think is
Speaker 1: really worth saying. Just because it was the top performing
Speaker 1: product doesn't mean it will be again. Well, it doesn't
Speaker 1: mean we're again, but it also doesn't mean it's the
Speaker 1: right product for you. I think as we go through
Speaker 1: these people are going to see a bit of a
Speaker 1: common theme and it's something that may not align with
Speaker 1: a lot of people's values. And you know, we spoke
Speaker 1: about this in an earlier investing series, and investing is
Speaker 1: such a personal thing that the performance of the fund
Speaker 1: is only one element that people would be considering and
Speaker 1: there are so many other factors. So this definitely isn't
Speaker 1: us saying these are the five things you could invest in.
Speaker 1: It's just a really fun review of the year that was.
Speaker 1: It's also really interesting because the world has changed quite
Speaker 1: significantly since last year when we talked about ETFs, and
Speaker 1: in June we entered what's called a bear market, or
Speaker 1: a bear market is when officially the shared market drops
Speaker 1: by a minimum of twenty percent from the last twelve
Speaker 1: months all time high. And I feel like coming out
Speaker 1: of COVID when it's not really out of COVID, but
Speaker 1: you guys know what I mean. As we're coming out
Speaker 1: of COVID and going back to like kind of business
Speaker 1: as usual. There were a number of different industries that
Speaker 1: like smashed it. Like remember when we did that ETF
Speaker 1: episode jets, Like every single ETF that we presented had
Speaker 1: like a really really high return, and I was like,
Speaker 1: oh my gosh, and this and this, and there was
Speaker 1: like some tech companies and some biopharmaceutical companies, and it
Speaker 1: was just really interesting. Now having gone through all of
Speaker 1: that and having experienced what we've experienced, the performance is
Speaker 1: not nearly as high as it was, But I think
Speaker 1: it's really interesting to kind of listen to episodes like this,
Speaker 1: and if you're interested, maybe go back and listen to
Speaker 1: that episode and see what the market was like twelve
Speaker 1: months ago. In the types of conversations we were having
Speaker 1: because politically, economically, and just literally the world is a
Speaker 1: different place today and the types of ETFs that performed
Speaker 1: really well in the last financial year are very different
Speaker 1: to the ones that performed well in the financial year
Speaker 1: before that, and there's really good reasons for that, and
Speaker 1: I guess we'll get into the nitty gritty and the
Speaker 1: conversation around that as we go through it. Jess. Yeah,
Speaker 1: and last thing to throw in there before we jump
Speaker 1: into the list itself is these were the best performing
Speaker 1: ASX ETFs, so they had to be listed on the
Speaker 1: Australian Securities Exchange to be considered for this list. We'll
Speaker 1: get questions, I was going to say, looking into it
Speaker 1: absolutely to give a little bit of what would you
Speaker 1: call it here? Just housekeeping housekeeping here these are all
Speaker 1: ASX listed shares and it is post management and performance fees. Obviously,
Speaker 1: if you are on a different platform, there might be
Speaker 1: platform fees that you personally need to take into consideration,
Speaker 1: but this is what the ETF reported directly post all
Speaker 1: of their fees taken out, So I think that's a
Speaker 1: great place to start, Jess. And as always, we're clearly
Speaker 1: going to go five to one because I'm not going
Speaker 1: to give you the biggest performing ETF upfront, am I. Now,
Speaker 1: I gotta work for it. No, you've got to work
Speaker 1: for it. You gotta wait for the break. You've gotta
Speaker 1: go through our advertising because that's how I pay Jess. Guys,
Speaker 1: that's important. I lack money. Let's kick things off with
Speaker 1: number five VD. What have you got?
Speaker 2: All right?
Speaker 1: So coming in at number five, we have the beta
Speaker 1: shares Global Agricultural Companies ETF and the ticker code. So
Speaker 1: I feel like ticker code is something I've only just
Speaker 1: started talking about. It's definitely not new in this world.
Speaker 1: But you know the little code that the ASX use
Speaker 1: to like identify a share, it's called a ticker code.
Speaker 1: Go figure. Because the ticker board, so you know, you
Speaker 1: would have seen the pictures like yeah, real old school,
Speaker 1: they will have stre exactly, so the boards on the
Speaker 1: walls that would like tick over the performance. It's the
Speaker 1: ticker because obviously they weren't going to write Beta shares
Speaker 1: Global Agricultural Company ATF what they were going to do.
Speaker 1: And I really like this ticker code. It's food that's clever. Yes,
Speaker 1: so funny. Anyway, So the first fun that we're looking
Speaker 1: at today is basically exactly what it says in the title.
Speaker 1: It is a global agricultural company is ETF. So as
Speaker 1: we said, this is an ASX listed ETF, but that
Speaker 1: doesn't mean it's only got Australian shares in it, right.
Speaker 1: Food is an agricultural based ETF that tracks a whole
Speaker 1: heap of food producing companies from around the world, so
Speaker 1: you might have heard of a whole heap of the
Speaker 1: companies in there. You've got Tyson Foods and Archer Daniels
Speaker 1: Midland and Deer and Co. And Food because it's way
Speaker 1: more fun to just refer to it as it's ticker code,
Speaker 1: because it's got a good one. Gave investors a total
Speaker 1: of three point five percent return over the twenty twenty
Speaker 1: two financial year, which honestly looks pretty good if you
Speaker 1: compare it to our top performing ASX shares. Really interesting
Speaker 1: the difference between the bottom performing at the top five
Speaker 1: versus last year made it into the top five jests, yeah,
Speaker 1: with only three point five percent last year's bottom five,
Speaker 1: like number five was trying to say, it came in
Speaker 1: at thirty nine point three two exactly right like last
Speaker 1: year was absolutely insane and I think, and like I
Speaker 1: can't remember because it was a while ago. I would
Speaker 1: have been like, guys, this is so irregular, like it's
Speaker 1: not common. But you've got to remember that a lot
Speaker 1: of the shares that were on that top list actually
Speaker 1: were shares that had performed insanely well over COVID, and
Speaker 1: COVID was kind of like an outlier for what economic
Speaker 1: performance actually looked like. So people were like, oh my gosh,
Speaker 1: now we're going to get on it. Like remember how
Speaker 1: Zoom had that like massive influx of users, because it
Speaker 1: just made sense. Yeah, you don't often see such crazy
Speaker 1: performance in the share market, but it was obviously quite
Speaker 1: responsive to the times we were going through. And now
Speaker 1: we've kind of come off a little bit. We're in
Speaker 1: a bear market. You know. There is talk from a
Speaker 1: lot of politicians and a lot of economists that we
Speaker 1: are on the way to some form of session. So
Speaker 1: obviously the market's going to have pulled back a little
Speaker 1: bit and be a little bit tighter with their purse string.
Speaker 1: So performance this year isn't looking nearly as sexy as
Speaker 1: it was last year. Yeah. Well, as someone whose portfolio
Speaker 1: is largely in the red, it's kind of like any
Speaker 1: kind of positive return is a great thing, so I
Speaker 1: can see why it's scraping in at three point five
Speaker 1: Does this make you like when we have this conversation
Speaker 1: and I say, Jess, when we're talking about the top
Speaker 1: five ETFs and number five is at three point five percent,
Speaker 1: does that make you feel slightly better about looking at
Speaker 1: your own portfolio and going, Okay, well, you know that
Speaker 1: isn't as good compared to last year. Does that give
Speaker 1: you more context or I guess confidence? Yeah? I think so.
Speaker 1: I think looking at this list, the numbers seem a
Speaker 1: lot more reasonable compared to last year's, which was you know,
Speaker 1: entry point of almost forty percents and I'm to almost
Speaker 1: ninety I think it was. It definitely makes it seem
Speaker 1: a lot smarter. I think I'm not feeling too anxious
Speaker 1: because we've done so much groundwork this year about understanding
Speaker 1: the cycles of the market and understanding that you know,
Speaker 1: you're not always going to be doing super well and
Speaker 1: that's totally fine. It' about time in the market, not
Speaker 1: timing the market. Yes, queen, you're like, maybe me, you
Speaker 1: just spit out all the stuff I say, and I
Speaker 1: love it. Yeah, I do. I sound exactly. I love it.
Speaker 1: I love it. I would wear that outfit though, So
Speaker 1: that's good. It's cute. We almost matched sometimes, if that's okay,
Speaker 1: all right, back on track, Victoria, what came in at
Speaker 1: number four? Okay, so number four is the Van Neck
Speaker 1: Australian Resources ETF not as sexy of a ticker code
Speaker 1: this time, I do apologize. The ticker code is mv R,
Speaker 1: and I can't even think of a cute acronym or
Speaker 1: something that suits that, so we just move on from that.
Speaker 1: Pick ticer because like food makes sense global Agriculture. MVR
Speaker 1: isn't even an abbreviation of the title. Yeah, usually it
Speaker 1: is an abbreviation of the title, but sometimes if an
Speaker 1: abbreviation already exists, they will just pick something that makes
Speaker 1: sense for that fund. And the V I'm assuming stance
Speaker 1: for Van Neck and it might be like something vanic Resources.
Speaker 1: I don't actually know off the top of my head
Speaker 1: what that particular one is. But often because there are
Speaker 1: so many big companies on the list, they double krinom
Speaker 1: might no, no, no, they won't double up. They will
Speaker 1: make you pick a different ticker code. So like you know,
Speaker 1: if you're going to go with like Rio Tinto. Right,
Speaker 1: they've already got Rio. So if Rio Underwear wanted to
Speaker 1: list on the ASX, they would have to come up
Speaker 1: with a different ticker code. It's like Instagram names when
Speaker 1: all the good ones are taken and you have to
Speaker 1: do it like a dot or an understor Right, there's
Speaker 1: an underscore in my name because there's a woman in
Speaker 1: the US called Victoria Devine and she's like a pr
Speaker 1: person and woman. You've got all of my usernames. Cut
Speaker 1: this out, rude. I couldn't even get the TikTok name.
Speaker 1: When TikTok started to become a thing, I was like,
Speaker 1: this is my time to shine. I'm going to get
Speaker 1: Victoria Devine. I did not. I still had to use
Speaker 1: my underscore. She was too speedy. Tell me more speedy
Speaker 1: about MVR. This fund holds ASX shares. So it's Australian only,
Speaker 1: which I mean is probably pretty obvious given it's called
Speaker 1: the Australian Resources ETF, but only in the resources sector.
Speaker 1: So when we talk about the resources sector, that's like
Speaker 1: energy and fuel, and we are talking about oil and
Speaker 1: petrol and petroleum production and stuff like that. So this
Speaker 1: one's a little bit debated because there are obviously going
Speaker 1: to be people on either side of the fence, people
Speaker 1: who are like yes, investing resources, and then people who
Speaker 1: are like, no, it's unethical, Like that's not aligned to
Speaker 1: my values. This episode is not about your values. This
Speaker 1: is just about hey, here are the top five performing ones. Obviously,
Speaker 1: you guys know that I'm probably more aligned to an
Speaker 1: ethical portfolio because that's just where my values sit. But honestly,
Speaker 1: you do you boo. Australia is known for its resources
Speaker 1: production and export. And as an Australian who is also
Speaker 1: an investor and somebody who I would say knows the
Speaker 1: shere market pretty well, a lot of our performance does
Speaker 1: come from resources. Because you think about our main exports, like,
Speaker 1: we aren't the type of country who you know exports
Speaker 1: massive massive amounts of corn or like do you know
Speaker 1: what I mean? Like you know New Zealand to the
Speaker 1: export shape. Great, they don't have as many resources as us,
Speaker 1: but with the amount of land we have, it kind
Speaker 1: of makes sense that the world relies on us for that.
Speaker 1: So you can't just cut that sector out comempletely anyway.
Speaker 1: Complete side note, they hold some pretty big names. So
Speaker 1: I mentioned Rio before that's a good place to start.
Speaker 1: Rio is in that portfolio. Then there's BHP, which everybody
Speaker 1: would know, and Woodside Energy Group, which is again a
Speaker 1: really popular name. So essentially the Vanick Australian Resources ETF
Speaker 1: managed to give a total return Jessica of a very
Speaker 1: exciting five percent over the twenty twenty two financial year
Speaker 1: for its investors. Five percent. Given I know it's only
Speaker 1: a small portion of portfolio, but given how freaking expensive
Speaker 1: petrol has been this rude, right, and given that BHP
Speaker 1: sits in that portfolio, I'm really surprised that it's only
Speaker 1: five percent. Yeah, I'm surprised at the amount of return.
Speaker 1: I'm not surprised that they've made this list because I
Speaker 1: was like, okay, cool, they're absolutely turning a profit. But
Speaker 1: in saying that, a lot of companies are not just
Speaker 1: exporting their importing. So as we know, BEHP are absolutely
Speaker 1: an importer as well as an exporter, and that means
Speaker 1: that they are having to pay the fuel prices that
Speaker 1: the UAE are setting for us, So not every single
Speaker 1: discount actually gets past to us because sometimes it has
Speaker 1: to be absorbed into the cost. So I think that
Speaker 1: that makes a lot of sense but at the same
Speaker 1: time it's kind of a joke. I don't like it.
Speaker 2: Yeah.
Speaker 1: Also, while we're chatting about it, Rio is a really
Speaker 1: controversial share and sometimes that comes up in our comments section.
Speaker 1: Can you run me and everybody listening through the why
Speaker 1: there's a lot to unpack there. I mean, predominantly I
Speaker 1: would say it's their desecration of Aboriginal sacred land and
Speaker 1: that makes me really mad. And then er shareholders blasted
Speaker 1: Rio recently over board exodus, so basically their entire board
Speaker 1: just yeat it out of there, And James Packer basically
Speaker 1: said that the resignation of all three independent directors under
Speaker 1: pressure from Rio reeks of something terribly wrong. So there's
Speaker 1: a lot of skepticism in addition to the fact that
Speaker 1: they are in the resources sector, so people already looking
Speaker 1: at them as like, what are you doing for the environment?
Speaker 1: How does that work? And yeah, it's just a bit
Speaker 1: of a spicy topic. And historically their share prices have
Speaker 1: been very ebby and very flowy. Like I remember back
Speaker 1: in like twenty fifteen, twenty sixteen, there was like a
Speaker 1: fifty percent drop in their share prices. When I was
Speaker 1: talking to clients, like obviously portfolios I hadn't written, but
Speaker 1: talking to clients about what they held, and it's always
Speaker 1: just been a little bit controversial, a little bit topical
Speaker 1: from my perspective. I just think that resources, I understand it,
Speaker 1: I respect that it exists. I respect that it really
Speaker 1: holds up a lot of our economy. So we can't
Speaker 1: just you know, evict it from the country and say, oh,
Speaker 1: we shouldn't do that. But what can we do to
Speaker 1: be more respectful? What can we do to help climate change?
Speaker 1: What can we do to you know, rebuild the Great
Speaker 1: Barrier reef? And there are actually a number of different
Speaker 1: resource companies that if you're interested in being exposed to resources,
Speaker 1: we only want to be exposed to resources who are
Speaker 1: also trying to help the community. I think that's a
Speaker 1: really good space to have a conversation in as well.
Speaker 1: And I won't get into it now, but yeah, Reo,
Speaker 1: it wouldn't be one of them, all right, I reckon,
Speaker 1: We've got time for one more before we go to
Speaker 1: a quick break. What is sitting at number three? All right?
Speaker 1: Less spicy than talking about resources? Just is the SMP
Speaker 1: five hundred high yield Low Volatility ETF and its ticker
Speaker 1: code absolutely makes no sense. It's z y us us
Speaker 1: zeus so us. I mean that makes me want to
Speaker 1: buy it now Apart from its performance, I mean, this
Speaker 1: performance is okay, but there's obviously two more better ones
Speaker 1: coming after the break. But essentially, this ETF is really
Speaker 1: income focused. So it's a fund that tries to track
Speaker 1: a select group of US companies that are picked to
Speaker 1: maximize income, money win, but also minimize risk or volatility
Speaker 1: that it is exposed to. So that's, from my perspective,
Speaker 1: pretty sexy. Whoever's organizing that sounds good. So you might
Speaker 1: know some of its current holdings, and a lot of
Speaker 1: its holdings, from my perspective, are actually kind of like
Speaker 1: in Australia we call them blue chip stocks. I would
Speaker 1: say blue chip. They're tried, they're true, they're tested, they've
Speaker 1: existed for a lot of years. So for example, the
Speaker 1: technology company IBM, So you would have heard of IBM,
Speaker 1: you would have heard of Chevron, you would have heard
Speaker 1: of craft tins like that makes and it might not
Speaker 1: be something that you recognize, Jess, But Philip Morris International,
Speaker 1: do you know what that is? No idea, You probably
Speaker 1: haven't heard of it before, and it makes sense because
Speaker 1: you don't smoke. They are a cigarette company, and they
Speaker 1: are arguably the most recognized and best selling international cigarette company.
Speaker 1: Marlborough Marlborough. Oh yes, yeah, I'm not very heard at
Speaker 1: that's never picked up a dart in my life. But
Speaker 1: I find it really interesting. And I'm not trying to
Speaker 1: give them credit. I just really like creeping on products.
Speaker 1: But get this. They are and were the biggest multinational
Speaker 1: tobacco company in the US, with their products sold in
Speaker 1: more than one hundred and eighty companies. And now if
Speaker 1: you google that company, the description of their company is
Speaker 1: get this, Jessica. We're building Philip Morris International's future on
Speaker 1: smoke free products that are a better choice than cigarette
Speaker 1: smoking that goes in direct conflict to the product that
Speaker 1: they sell. That's interesting because they still produce the Ciggi's Baby. Yeah,
Speaker 1: Like they still taking most of their money off that,
Speaker 1: but they're literally changing their focus because they know that
Speaker 1: the future maybe doesn't include them, and they're trying to
Speaker 1: be on that train. And I think that's really interesting.
Speaker 1: Is that green washing or is that No, that's not
Speaker 1: green washing. I think that that's a business identifying that
Speaker 1: they have limited time left before they'll either be made
Speaker 1: illegal or redundant or you know, drop in sales. Like
Speaker 1: here in Australia, we know that the tax on cigarettes
Speaker 1: has absolutely been astronomical for good reason. It's to deter
Speaker 1: people from purchasing it. It's not because the government's trying
Speaker 1: to make more money. They're just trying to make it
Speaker 1: more inaccessible, which makes sense. But that leads to a
Speaker 1: decrease in people buying their product, which means they have
Speaker 1: to also up their prices. So I think it's just honestly,
Speaker 1: cigarettes are dying, and I'm not mad about it anyway.
Speaker 1: I just find that interesting about Philip Morris International because
Speaker 1: it's just nice to know stuff about stuff, right. But
Speaker 1: zeus or US, which is the S and P five
Speaker 1: hundred high Yield Low Volatility etf I much prefers use
Speaker 1: manage to give all of its investors a twenty twenty
Speaker 1: two financial year return of twelve point seven percent. Jessica,
Speaker 1: the concept of a high yield low volatility very appealing,
Speaker 1: very sexy. It may be sexy. Twelve point seven percent
Speaker 1: is not bad either. It's not bad, and I mean
Speaker 1: I would question like I just feel like Philip Morris
Speaker 1: obviously exists. I'm like, oh, is it really low volatility?
Speaker 1: There's so much risk. Yeah, there's so much risk from
Speaker 1: me as a non smoker because I'm like, that's going
Speaker 1: to be dead soon. But addiction is what is driving
Speaker 1: their performance, so it's really not going that far that fast.
Speaker 1: So that's why I'm also super interested to see that
Speaker 1: they've changed their mission statement because it's like, well, is
Speaker 1: that really what we're working towards? Are you're going to
Speaker 1: protect your profits and make yourselves look good. It's not
Speaker 1: green washing because they are doing that, but it's also just,
Speaker 1: I don't know, a little bit controversial. Ah, super interesting. Alrighty,
Speaker 1: let's go to a really quick break because we're going
Speaker 1: to make you wait to learn about those top two Baby,
Speaker 1: don't go anywhere. Welcome back everybody. Today we are reviewing
Speaker 1: the top five forming ETFs if the twenty twenty one
Speaker 1: twenty twenty two financial Yeah, we just got through numbers
Speaker 1: five to three, and now we've saved the two best
Speaker 1: for us. That's true best because like we're about to
Speaker 1: talk about a fuel ETF so performing Yeah, like we
Speaker 1: didn't take ethics into consideration, and I mean I thought
Speaker 1: about this. I was thinking when we're scripting this jests
Speaker 1: and just like pulling together all the research. I was like,
Speaker 1: maybe we should do like the top performing ethical ETFs,
Speaker 1: but like ethical means something different to literally everybody, and
Speaker 1: there's no way of me pulling together a top performing
Speaker 1: ethical ETF list without it becoming a recommendation, because then
Speaker 1: I would have to say, oh, I believe this is ethical,
Speaker 1: and that's not the case here in Australia. You just
Speaker 1: can't do that. So till we have that, maybe we
Speaker 1: could do like a top ESG investing portfolio or something. Yes,
Speaker 1: but I mean slide into our DMS and let us
Speaker 1: know what you want, because we really like not having
Speaker 1: to think of our own topics and really like being
Speaker 1: spoon fed. But speaking of spoonfed, I went to the
Speaker 1: a Sex website and took the top five performing ETFs
Speaker 1: of twenty twenty two's financial year, and now I'm presenting
Speaker 1: them to you guys. As if I did all the
Speaker 1: work myself, you still a little bit of the work,
Speaker 1: got a little bit of the work he ASX did
Speaker 1: most of it. But so number two we've got the
Speaker 1: Beta Shares Global Energy Company's ETF, which has the ticker
Speaker 1: code Jess fuel, Oh tell me more, what does that contain?
Speaker 1: Just press that they got that, Like what a good
Speaker 1: ticker code. So basically, this is really similar to the
Speaker 1: first ETF that we talked about. So we talked about
Speaker 1: the Beta Shares Global Agricultural Fund, which was the ASX
Speaker 1: ticker code food. Now we're talking about the ASX ticker
Speaker 1: code Fuel. So I would argue that Beta shares are
Speaker 1: the most creative and kind of witty when it comes
Speaker 1: to mating their ASX ticker codes. But this fund, in contrast,
Speaker 1: actually holds a diversified range of global energy shares rather
Speaker 1: than agricultural ones. So once again we see Chevron here.
Speaker 1: Again Chevron is a really big oil and resources company.
Speaker 1: But then we see like Mobile and Royal, Dutch Shell
Speaker 1: and BP, so all of the big names that if
Speaker 1: I said, Jess, you're on, like the price is right,
Speaker 1: what are the top five fuel companies? You probably put
Speaker 1: them all into this ETF. And this ETF actually really
Speaker 1: outperformed the other three that we have already discussed because
Speaker 1: over the twenty twenty two financial years, twenty seven point
Speaker 1: nine percent return, twenty seven point nine that's sounding a
Speaker 1: lot better than when we started this list at three
Speaker 1: point five, it's just like a lot more clickbaity, right,
Speaker 1: It's far more clickbaity than you know what it was
Speaker 1: going to be. So I'm probably going to use this
Speaker 1: to market episode. Yeah, very smart from you. Obviously, as
Speaker 1: we said before, resources very controversial, petrol particularly, But that's
Speaker 1: what's really frustrating about this space, right, Like when I
Speaker 1: was putting together share portfolios way back when it wasn't
Speaker 1: normal to take into consideration ethical considerations, really, I would
Speaker 1: talk to people and it's just like a no brainer
Speaker 1: to put resources as one of the biggest players, especially
Speaker 1: in high net wealth share portfolios, because they just so
Speaker 1: tried and true and kind of stable. Like historically, obviously
Speaker 1: at the moment we are going through a pretty tumultuous time,
Speaker 1: but historically they would just pay their dividends, do their job,
Speaker 1: you know, keep bringing resources in. Like it just it
Speaker 1: was something where old school people would just buy BEHP
Speaker 1: because it made sense. Like I remember having one client, Jess,
Speaker 1: and obviously I didn't on board them. It was like
Speaker 1: a historical client that I inherited and I loved them,
Speaker 1: so they passed away and their portfolio was inherited by
Speaker 1: their son who ultimately became my client, and we were
Speaker 1: talking about the portfolio and what we wanted to do,
Speaker 1: and this son was really passionate about ethical investing, like
Speaker 1: so passionate about the Great Barrier reef and really hated
Speaker 1: the fact. I might have told this story on the
Speaker 1: podcast before, but really hated the fact that he owned
Speaker 1: BEHP because he was, like, I do so much he
Speaker 1: does volunteering to like clean up the reef and like
Speaker 1: you know, it donates money, and like very high networth
Speaker 1: family as well. He's like, I need to get rid
Speaker 1: of it. But when we went and did the analysis
Speaker 1: to work out how much it would cost him to
Speaker 1: dispose of the shares, we had to go so far
Speaker 1: back that his shares in BHP were bought in British
Speaker 1: pound sterling wow, back when we didn't even have Australian currency,
Speaker 1: because his dad and then his grandfather had bought them
Speaker 1: and obviously they were so cheap that now that he
Speaker 1: needed to sell them, just think about those capital gains.
Speaker 1: He was going to lose nearly half of his portfolio
Speaker 1: just by extinguishing it and like selling down that asset
Speaker 1: to buy something else. And when it comes to the
Speaker 1: power of money. I mean, this is a complete side
Speaker 1: note and a complete tangent, but like I think it's interesting.
Speaker 1: We ended up coming to the agreement that we would
Speaker 1: actually keep those shares because the money that that share
Speaker 1: was making could be donated to saving the reef and
Speaker 1: you know, having a positive impact. So even if you
Speaker 1: own things, sometimes that's not the best idea to just
Speaker 1: sell them down because your quote values have changed, because
Speaker 1: the impact might be far bigger than what you can
Speaker 1: do with the money that your money is making. Think
Speaker 1: that there's just a lot to think about here, and
Speaker 1: you know, there's absolutely no shame in what you own.
Speaker 1: I want you to be just really happy, but there
Speaker 1: are sometimes creative ways that we need to go round
Speaker 1: to make sure that you are happy with the portfolio
Speaker 1: that you have. Yeah, super interesting, not at all surprising
Speaker 1: with the rising energy prices that that particular ETF did
Speaker 1: pretty well. I'm not surprised to either, Jess. But you
Speaker 1: know what, we have one that has come in at
Speaker 1: over fifty percent and that is our number one performing
Speaker 1: asx ETF of twenty twenty two's financial year. Can you
Speaker 1: guess what space it is in I'm gonna say resource.
Speaker 1: It is in resource is your genius. Beta Shares have
Speaker 1: taken out three of the top spots in this list.
Speaker 1: By the way, Ah, they've done well. I feel like
Speaker 1: they did really well. They work upstairs from us, Jess,
Speaker 1: they're in our office. We're basically best friends with an
Speaker 1: ETF provider. Ten out of ten love their work. But
Speaker 1: the Beta shares, this one doesn't sound nearly as sexy.
Speaker 1: The Beta Shares Crude Oil Index ETF, which has the
Speaker 1: Teker CODEO ooho or if you like kind of blow
Speaker 1: your eyes. The o's kind of get a little bit
Speaker 1: skinnier and it's like triple zero. Please call them because
Speaker 1: you own a crude oil ETF. But yeah, let's not
Speaker 1: get into that. My personal opinion should not be foreshadowing
Speaker 1: your decisions as an investor. But essentially the best performing
Speaker 1: ASX ETF is the Beta Shares Crude Oil Index ETF,
Speaker 1: and basically it's another energy focused one, which we're not
Speaker 1: surprised about. But it's actually nothing like the funds that
Speaker 1: we've already talked about. So instead of tracking energy companies,
Speaker 1: it actually only invests in West Texas intermediate crude oil
Speaker 1: futures contracts and doesn't actually hold any shares within it.
Speaker 1: What does that mean? Not holding any actual shares, so jess,
Speaker 1: instead of having shares of other companies. Like before, we
Speaker 1: were talking about the Beta shares global energy companies, and
Speaker 1: I listed out the companies that it had shares in,
Speaker 1: So in its basket it holds little pieces of other companies,
Speaker 1: whereas the Crude Oil Index does not actually do that.
Speaker 1: It actually only invests in crude oil futures contracts, so
Speaker 1: actual contracts, so basically pieces of paper are in your ETF,
Speaker 1: and it tracks the average and the returns of the
Speaker 1: West Texas Intermediate Crude Oil futures as opposed to actual
Speaker 1: shares that might be invested inside that. So it's actually
Speaker 1: just futures contracts instead of shares. I didn't even know
Speaker 1: that was a thing. It's wild what you can do
Speaker 1: with an ETF these days. Wow. So it has obviously
Speaker 1: been the biggest performer over the last financial year with
Speaker 1: let's take it away with sixty point three percent over
Speaker 1: that period of time. Wow, that is a huge amount.
Speaker 1: I agree, But I also think it's kind of funny
Speaker 1: that it's West Texas shares, so basically it's just a
Speaker 1: benchmark that is used in trading, and there's another few.
Speaker 1: There's the Brent Crude and there's the Dubai Omann Crude
Speaker 1: Oil Index. So it's all quite interesting in that space.
Speaker 1: But no, ETFs don't just necessarily have to hold shares
Speaker 1: just they can also hold bonds, which I think is
Speaker 1: quite interesting. But given how conservative they are, they were
Speaker 1: never going to make it to the top five performing
Speaker 1: of twenty twenty twos financial year super interesting. A lot
Speaker 1: of resources this year, which I feel like was not
Speaker 1: as much the case last year. Last year, I remember correctly,
Speaker 1: was very tech heavy. Yeah, very tech heavy because of
Speaker 1: what we've just gone through and now think about the
Speaker 1: world coming back. If you're getting more expensive, the war
Speaker 1: that's going on at the moment involving Russia and Ukraine, like,
Speaker 1: there is a lot going on in that space making
Speaker 1: oil and resources far more valuable and people want to
Speaker 1: get their hands on them. So it kind of makes
Speaker 1: sense that this is the way that our top five
Speaker 1: shares are performing. And I actually I kind of want
Speaker 1: to like speed into the future and see what next
Speaker 1: year looks like, because it's going to be different again,
Speaker 1: it always is. That's what I was just going to say.
Speaker 1: Imagine us sitting here in twelve months time, reviewing again
Speaker 1: another year, and if it's like a whole different bunch
Speaker 1: of sectors or like, it's just interesting to think about
Speaker 1: how it can change so much in such a short
Speaker 1: period of time. Yeah, yeah, I get it. And I
Speaker 1: guess this is a really good example of why this
Speaker 1: is not a recommendation for things that you should buy,
Speaker 1: because the shares that we listed last year not on
Speaker 1: this list, So if you're expecting the same performance, it's
Speaker 1: just not going to happen. Like this is what has happened,
Speaker 1: not what will happen. And I think this is just
Speaker 1: like really good pieces of education because it just teaches
Speaker 1: you a lot about one the share market and how
Speaker 1: it performs, but also like what's the economy up to?
Speaker 1: What does that mean when we then look at the
Speaker 1: share market and it makes sense that the performance isn't
Speaker 1: blowing us out of the water in the same way.
Speaker 1: But like, mate, I'd be happy with any of those
Speaker 1: returns at this point in time because I'm still in
Speaker 1: the red. Yeah, same queen, but I recoonne it's about
Speaker 1: it today. I hope you guys enjoyed this rap episode.
Speaker 1: Let us know if there are any other categories he
Speaker 1: likes to wrap. Last year we did the top literary
Speaker 1: rap will just summarize. Yeah, we'll leave the rapping to
Speaker 1: all the real wrappers. Last year, I think we did
Speaker 1: the top five performing shares as well, which it'd be
Speaker 1: another fun mount if people are still keen individual shares
Speaker 1: like we are absolutely doing that. I've got we did that.
Speaker 1: I'm on it. I'm on it. I'm on it. She's
Speaker 1: gonna go do research right this second. I've got to go. Guys,
Speaker 1: I am Audi. Before we do go, don't forget. If
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