Raiz Portfolio Performance – 2021 Results

Raiz has 7 different portfolios that you can invest in. Have you ever wondered how each portfolio performs? Here is the performance for each of the Raiz portfolios for the last financial year (2020-21):

Raiz Portfolio Performance

Remember that just because a portfolio had impressive past performance, this doesn't guarantee or even indicate future returns.

Portfolio1 Year Performance3 Year Performance (annualised)
Conservative6.57%4.92%
Moderately Conservative10.20%6.52%
Moderate15.01%7.99%
Moderately Aggressive20.76%9.56%
Aggressive24.69%10.51%
Emerald22.86%12.44%
Sapphire32.89%NA

How does Raiz Compare to ASX200

The ASX200 is made up of 200 of the largest companies listed on the Australian Stock Exchange. Index investing has been a pretty tried and tested way to invest in the stock market. If you wanted to you could invest in an ETF such as IOZ.

Portfolio1 Year Performance3 Year Performance
ASX200 (IOZ ETF)28.46%9.37%

Remember you would need to take into account brokerage fees. The 3 year performance above is annualised. Remember past returns don't indicate future results.

How does Raiz Compare to VDHG?

VDHG is a Growth focused ETF that is very popular with the FIRE community, especially on Reddit. So how does Raiz compare to this ETF? The fund was created in 2017 and these figures are based on the gross returns and a simple average of these yearly gross returns.

Portfolio1 Year Performance3 Year Performance (Average Annual)
VDHG5.78%9.24%

It's very hard to read too much into the data above. If you look at the chart below from Vanguard you can see that the portfolio had one really good year (which also accounted for much of the hype on reddit) and then two very poor years. Remember this is a growth portfolio that is looking for long term performance. This also doesn't account for brokerage fees.

Which Raiz Portfolio is Best?

I can't answer this question for you. I can give you some general ideas as to why Raiz has setup their product with different portfolios. If you're older with a larger nest egg, you probably don't want to see the value of that nest egg drop in value over the short term. You might need to use it soon! If you're younger, you might be more happy with your capital dropping in the short term, but profit from longer term gains (10+ years).

The conservative portfolios are designed to grow slowly but not move around in value very much. The aggressive portfolios are designed to have the most growth over the long term (10+ years) but because you're invested in riskier asset classes your account balance might move up and down more.

Younger people can afford to be more aggressive. Older people generally need to hang onto the capital they have already got.

Hopefully this helps you make a decision about your portfolio.

Has Raiz had good performance?

For my circumstances I believe that Raiz has done a really good job. They have weathered some pretty terrible market conditions.

When you look at the performance you also need to look at how you're investing. With Raiz, I can invest small amounts every week. If I was investing in an ETF, I would need to save up at least $500 to make a brokerage trade. I would be investing less often so my investment would be affected by volatility. Volatility has been huge over the past few years. I'm sure there have been a lot of investors who were burned by investing at the wrong time. With Raiz I don't need to worry about this as I'm investing every week (or even more often).

You can find out more about Raiz here

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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One comment

  1. Love the blog Wealth Diary! You were extremely thorough with your comparisons, and I appreciate that. Like you see in the tables, I’ve noticed the higher risk you take on, there is a greater potential for higher returns. This isn’t always the case, but it happens in a bull market. Keep up the great work!

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