What is Direct Indexing?
Direct indexing lets you personalise passive investments. Instead of sifting through the thousands of ETF options available, you can build what you’re looking for from the ground up. With costs comparable to ETFs, we’re calling this the second generation of ETFs, or ETFs 2.0.
Direct Indexing has been available in the U.S. for decades, and its popularity continues to increase as a result of the low costs, portfolio personalisation, tax optimisation and direct exposure the investment structure offers clients.
How Does Direct Indexing Work?
Choose your base Index
Start by choosing which index you would like to invest in. We offer Australian and international equities, and Australian Government bond indices.
Personalise
Next, personalise your investment through ready-made and bespoke screens and tilts.
Review your portfolio
Choose your investment amount, and then view an estimate of the stocks that will be in your portfolio, including all the stock tilts and exclusions you have selected to personalise your portfolio.
Invest
Finally, once your account is setup and funded we’ll invest in each whole or fractional share directly in your own account.
Customise your portfolio from our range of ethical and portfolio options
Ethical Investing
When it comes to ethical investing, the questions become more nuanced and the answers often depend on the individual.
For example, some people like nuclear power for efficiency and carbon reduction benefits. Other people believe the risks to the environment and contamination are too high.
At Nucleus, we don’t dictate the ethics to investors. You choose from dozens of ethical screens and tilts so that your portfolio reflects your beliefs.
Investment Options
PASSIVE PORTFOLIOS
Passively managed investment solutions for those who are happy to receive indexed returns whilst paying lower fees. These portfolios hold only Australian or International shares or ASX listed Bonds, and do not feature Tactical Asset Allocation, meaning they are always fully invested and are not ‘de-risked’ at any time. This can mean higher levels of volatility compared with Tactical portfolios.
Features
A portfolio of the largest global shares by market capitalisation (40 holdings)
- Investment objective: To provide a return before fees approximating the S&P Global 100 Index in Australian dollars. Measured over a five year rolling average.
- Investment strategy: The model provides exposure to a portfolio of the largest global equities by market capitalisation. The model will generally hold the 40 largest shares listed in developed markets.
-
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Global Equities exposure
-
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
-
Minimum investment: $10,000 (platform dependent)
-
Benchmark is the S&P Global 100 Index in AUD
-
During periods when small companies outperform larger ones the portfolio may underperform, and vice versa.
-
Portfolio is unhedged so investors are exposed to AUD movements
- View the Target Market Determination for this portfolio
Fees
- Our investment management fee is 0.17% of your account balance per annum
- There are additional platform and administration fees which vary with investment size and asset type
- A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
*The 5 year annualised return p.a of this portfolios benchmark (S&P World 100) is 8.9%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
Features
A portfolio of the largest ASX listed companies' shares (25 holdings)
- Investment objective: This is a passive strategy designed to provide a before fees return in line with the S&P/ASX 20 Accumulation Index over rolling five year periods.
- Investment strategy: The model provides exposure to a portfolio of the 25 largest companies on the ASX.
- Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Australian Equities exposure
- Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
- Minimum investment: $10,000 (platform dependent)
- Benchmark is the ASX20 Index
- View the Target Market Determination for this portfolio
-
Fees
- Our investment management fee is 0.17% of your account balance per annum
- There are additional platform and administration fees which vary with investment size and asset type
- A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
*The 5 year annualised return p.a of this portfolios benchmark (ASX20) is 4.8%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
Features
A portfolio of Australian Commonwealth Government Bonds listed on the ASX.
Fees
- Our investment management fee is 0.11% of your account balance per annum
- There are additional platform and administration fees which vary with investment size and asset type
- A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.11%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
PASSIVE PORTFOLIOS
Passively managed investment solutions for those who are happy to receive indexed returns whilst paying lower fees. These portfolios hold only Australian or International shares or ASX listed Bonds, and do not feature Tactical Asset Allocation, meaning they are always fully invested and are not ‘de-risked’ at any time. This can mean higher levels of volatility compared with Tactical portfolios.
Features
A portfolio of the largest global shares by market capitalisation (40 holdings)
- Investment objective: To provide a return before fees approximating the S&P Global 100 Index in Australian dollars. Measured over a five year rolling average.
- Investment strategy: The model provides exposure to a portfolio of the largest global equities by market capitalisation. The model will generally hold the 40 largest shares listed in developed markets.
-
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Global Equities exposure
-
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
-
Minimum investment: $10,000 (platform dependent)
-
Benchmark is the S&P Global 100 Index in AUD
-
During periods when small companies outperform larger ones the portfolio may underperform, and vice versa.
-
Portfolio is unhedged so investors are exposed to AUD movements
- View the Target Market Determination for this portfolio
Fees
- Our investment management fee is 0.17% of your account balance per annum
- There are additional platform and administration fees which vary with investment size and asset type
- A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
*The 5 year annualised return p.a of this portfolios benchmark (S&P World 100) is 8.9%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
Features
A portfolio of the largest ASX listed companies' shares (25 holdings)
- Investment objective: This is a passive strategy designed to provide a before fees return in line with the S&P/ASX 20 Accumulation Index over rolling five year periods.
- Investment strategy: The model provides exposure to a portfolio of the 25 largest companies on the ASX.
- Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Australian Equities exposure
- Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
- Minimum investment: $10,000 (platform dependent)
- Benchmark is the ASX20 Index
- View the Target Market Determination for this portfolio
-
Fees
- Our investment management fee is 0.17% of your account balance per annum
- There are additional platform and administration fees which vary with investment size and asset type
- A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
*The 5 year annualised return p.a of this portfolios benchmark (ASX20) is 4.8%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
Features
A portfolio of Australian Commonwealth Government Bonds listed on the ASX.
Fees
- Our investment management fee is 0.11% of your account balance per annum
- There are additional platform and administration fees which vary with investment size and asset type
- A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.11%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
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