Six Park currently offers five core investment portfolios, which each have a matching sustainable alternative that you can select when we provide your investment recommendation. Each portfolio features a different blend of our preferred ETFs and has been designed to provide an optimal risk/return balance for specific investor profiles.

Our lower-risk portfolios contain higher proportions of defensive assets (such as bonds) and lower exposure to riskier asset classes like shares. As we move across our portfolio range, we apply greater weightings towards assets such as Australian and overseas shares, which offer higher risk but higher potential returns.

A graph showing the different risk profiles for robo advisor Six Park's investment portfolios

 

Although our portfolios may appear simplistic at first glance, they represent significant underlying analysis and careful crafting by our investment team.

Our portfolios are diversified across up to seven different asset classes through ETFs with literally thousands of underlying positions. Studies have shown it is increasingly difficult to improve the risk-return trade-off of well-diversified portfolios by continuing to add asset classes. Generally, the added complexity doesn’t materially enhance returns and instead brings rapidly diminishing benefits – especially once trading costs, minimum investment sizes and the close correlations between most sub-asset classes are considered.

Six Park started tracking our portfolios’ performance in 2014, but the ETFs and underlying assets in which we invest have been around for longer, so the returns history of these ETFs and assets can illustrate how our portfolios would have been likely to perform.

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