Evaluating the robustness of global diversified ETF-based investment portfolios

Abstract or Summary

Investing has been recognized as a way to generate wealth. Investors are particularly interested in chasing the short-term top performing asset while they, in fact, should concern with the robustness of their investment portfolios. This article explores the importance of formulating and following an investment strategy with a portfolio that preserves your capital while seeks to provide relevant returns considering the actual exposition to risks. Investing strategies and asset allocation are topics analysed by both industry and academia. In the article, we evaluate three global diversified portfolios build with ETFs (exchange traded funds) from the New Zealand Stock Exchange (NZX). Analysis of the last 5-years performance using historical data showed that the single Total World ETF has outperformed two other similar portfolios: an equal-weighted and a cap-weighted.