Buy-low and sell-high are the traditional stock market strategies, but selecting the right stock can be challenging. Exchange-traded funds (ETFs) can help diversify portfolios with US stocks, offering a better bet across various market capitalizations and sectors.
An ETF is a low-cost mutual fund that tracks an index, allowing investors to buy all stocks in the same proportion as the index. They follow various indexes and industries and have a distinct Ticker symbol. Units can only be traded during trading hours.
Appreciate, a SEBI and IFSCA registered fintech company, unveils Goals, a customised basket of ETFs designed for smart retail investors seeking to diversify their portfolio globally with exposure to US markets.
Goals’ constituent ETFs invest in globally reputed US companies along with US treasury offerings, helping the Indian investor target long-term growth along with capital preservation.
Designed on the same lines as an SIP, Goals channels investors’ contributions into a specially designed ETF basket seamlessly and without a subscription, fixed remittance fee or withdrawal fee. In backtesting, Goals delivered high annualised returns by deploying a smart combination of equities, treasuries, gold, real estate funds as well as leveraging currency appreciation to its advantage.
Goals 3-year Sharpe ratio — a metric used to measure returns on an investment adjusting for its risk — surpasses the average Sharpe ratio of the 50 top Indian mutual funds (with AUMs of over ₹1,000 crore).
The average Sharpe ratio of Goals standing at 2.93 towers over these Indian mutual funds’ Sharpe ratio of 1.68. This makes the Goals Sharpe ratio 1.73 times higher than that of these Indian mutual funds. The elevated Sharpe ratio indicates that on a risk-adjusted basis, Goals delivers superior returns compared to mutual funds in India.
At the portfolio returns level, Goals returns categorically outpace the returns of many mutual funds. Including currency appreciation, Goals delivered 24.14% returns in the 1-year period, 9.49% in the last 3-year period, and 14.96% in the last 5-year period.
Goals is powered by Appreciate’s proprietary AI algorithms which offer smooth and friction-free tracking of capital growth with reminders and tools to increase savings every year. The AI-powered offering automatically rebalances portfolios at phased intervals after gauging volatility levels and overall portfolio performance. A brief questionnaire also helps the AI assess the investor’s risk appetite. Prospective investment suggestions are calibrated to suit the individual’s life goals and risk tolerance. Meanwhile, the SIP fosters a disciplined approach to investing, helping the investor build wealth over the long run.
“Goals opens up the gateway for millions of tech-savvy Indian investors looking to invest in the US markets. Before Appreciate arrived, investors looking to diversify their portfolio with exposure to US equities and treasuries were at a disadvantage as platforms offering low-cost and hassle-free access to the US markets were truly lacking in the Indian ecosystem. With the launch of Goals, Indian investors can benefit from SIP contributions which will compound wealth by averaging during different market outlooks”, says Subho Moulik, Founder and CEO of Appreciate.
(Press Release)