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 screen and tilt options

 

 

CUSTOMISE YOUR PORTFOLIO

 

Screens

You can exclude the below to customise your portfolio

 

  • No Fossil Fuels (Worst Offenders)
  • No Fossil Fuels (Any)
  • No Coal Seam Gas or Fracking
  • No Nuclear Power
  • No Old Growth Forest Logging

Click get started to see which stocks are excluded in each screen.

  • No Arms (Worst Offenders)
  • No Arms (Any)
  • No Nuclear Weapons

Click get started to see which stocks are excluded in each screen.

  • No Undemocratic Countries
  • No Morally Repressed Countries (Worst Offenders)
  • No Morally Repressed Countries (Any)
  • No Immigration Detention
  • No Jails
  • Lack of Gender Diversity (Worst Offenders)
  • Lack of Gender Diversity

Click get started to see which stocks are excluded in each screen.

  • No Fast Food
  • No Genetically Modified Foods

Click get started to see which stocks are excluded in each screen.

  • No Gambling
  • No Alcohol
  • No Pornography
  • No Tobacco
  • No Cannabis

Click get started to see which stocks are excluded in each screen.

  • No Fur or Specialty Leather
  • No Animal Testing (Any)
  • No Animal Testing (Worst Offenders)

Click get started to see which stocks are excluded in each screen.

  • No Contraception
  • Only Sharia / Islamic
  • No Human Stem Cell Use

Click get started to see which stocks are excluded in each screen.

  • No Australian tax dodgers
  • No Economically Repressed Countries (Worst Offenders)
  • No Economically Repressed Countries (Any)

Click get started to see which stocks are excluded in each screen.

  • No Australian Shares
  • No International Stocks
  • No Government Bonds
  • No Foreign Cash

Click get started to see which stocks are excluded in each screen.

  • No Australian Banks
  • Limit Australian Housing Exposure
  • No GICS sector Communication Services
  • No GICS sector Consumer Discretionary
  • No GICS sector Consumer Staples
  • No GICS sector Energy
  • No GICS sector Financials
  • No GICS sector Health Care
  • No GICS sector Industrials
  • No GICS sector Information Technology
  • No GICS sector Materials
  • No GICS sector Real Estate
  • No GICS sector Utilities
  • No GICS Industry Group Transportation

Click get started to see which stocks are excluded in each screen.

Tilts

You can add the below to customise your portfolio

 

  • Quality Stocks
  • Value Stocks
  • Growth Stocks
  • Defensives

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

  • Clean Energy
  • Nuclear Power
  • Battery Supply Chain

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

  • Robotics
  • Cloud Computing Stocks
  • Artificial Intelligence
  • Cybersecurity
  • Large Technology Stocks

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

  • Luxury Goods
  • Travel
  • Logistics
  • Video Gaming

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

  • Gold (physical, hedged to AUD)
  • Gold (physical, unhedged)
  • Gold Stocks
  • Oil & Gas Stocks
  • Agribusiness

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

  • Weight Loss Drug Producers

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

  • Defense Contractors

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

  • Global Health Care
  • Global Industrials
  • Global Consumer Staples
  • Global Financials
  • Global Communication Services
  • Global Materials
  • Global Energy
  • Global Consumer Discretionary
  • Global Real Estate
  • Global Information Technology
  • Global Utilities

Click get started to see which stocks are included in each tilt.

Each tilt can also be a stand-alone portfolio.

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 DIRECT INDEXING 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 (the number of holdings can be customised by you: between 15 and 75).

  • Investment objective: To provide an exposure to a basket of the largest global stocks.
  • Investment strategy: The model provides exposure to a portfolio of the largest global equities by market capitalisation1Market capitalisation is the value of the company measured as the number of shares it has issued, multiplied by the price of those shares. The model will generally hold the 40 (by default) largest shares listed in developed markets2From IG, developed market in investing terms is a country that is most developed in terms of its economy and financial markets. Its capital markets are developed, with a high level of regulation and oversight, a market exchange, and good liquidity in its debt and equity markets. Examples include the United States, Japan and Australia) .
  • Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Global Equities exposure

  • Personalise with ethical and investment overlays, allowing you to exclude or include themes from over 100 different options.

  • Minimum investment: $10,000 (platform dependent)

  • 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

 

1 Year
23.4% p.a

 

3 Year
16.2% p.a

 

Inception
16.7% p.a*

Past performance is not an indication of future performance. The above returns are per annum, as of April 30th 2024 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.

 

 

Pie Chart of Nucleus Wealth's Global Leaders portfolio, showing portfolio holdings of 99% International Shares, and 1% Cash

Features

A portfolio of the largest ASX listed companies' shares (the number of holdings can be customised by you: between 15 and 75).

  • Investment objective: This is a passive strategy designed to provide an exposure to a basket of the largest Australian stocks.
  • Investment strategy: The model provides exposure to a portfolio of the 25 (by default) 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
  • Personalise with ethical and investment overlays, allowing you to exclude or include themes from over 100 different options.
  • Minimum investment: $10,000 (platform dependent)
  • 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

 

1 Year
9.1% p.a

 

3 Year
 7.6% p.a

 

Inception
9.6% p.a*

Past performance is not an indication of future performance. The above returns are per annum, as of April 30th 2024 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.

  • Investment objective: Passively managed portfolio creating a bond ladder using ten to 15 ASX listed Australian Commonwealth Government Bonds of various maturities.

  • Investment Strategy: The overall portfolio is constructed to target an average weighted maturity similar to the Bloomberg AusBond Treasury 0+Yr Index. Bonds are usually held to maturity and target minimal trading
  • Ideal for those who wish to manage their own asset portfolio and want to  include a lower cost Bond exposure
  • Minimum Investment is $10,000
  • Benchmark is the Bloomberg AusBond Treasury Index
  • View the Target Market Determination for this portfolio

Fees

  • Our investment management fee is 0 to 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

1 Year
-1.7% p.a

 

3 Year
-3.2% p.a

 

Inception
-3.6% p.a

 

Past performance is not an indication of future performance. The above returns are per annum, as of April 30th 2024 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.

 

 

Pie Chart of Nucleus Wealth's Government Bond Ladder portfolio, showing portfolio holdings of 99% Australian Commonwealth Government Bonds, and 1% Cash

PASSIVE DIRECT INDEXING 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 (the number of holdings can be customised by you: between 15 and 75).

  • 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 capitalisation3Market capitalisation is the value of the company measure as the number of share it has issued, multiplied by the price of those shares. The model will generally hold the 40 (by default) largest shares listed in developed markets4From IG, developed market in investing terms is a country that is most developed in terms of its economy and financial markets. Its capital markets are developed, with a high level of regulation and oversight, a market exchange, and good liquidity in its debt and equity markets. Examples include the United States, Japan and Australia) .
  • Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Global Equities exposure

  • Personalise with ethical and investment overlays, allowing you to exclude or include themes from over 100 different options.

  • 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

1 Year
23.4% p.a

 

3 Year
16.2% p.a

 

Inception
16.7% p.a*

Past performance is not an indication of future performance. The above returns are per annum, as of April 30th 2024 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.

 

 

Pie Chart of Nucleus Wealth's Global Leaders portfolio, showing portfolio holdings of 99% International Shares, and 1% Cash

Features

A portfolio of the largest ASX listed companies' shares (the number of holdings can be customised by you: between 15 and 75).

  • 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 (by default) 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
  • Personalise with ethical and investment overlays, allowing you to exclude or include themes from over 100 different options.
  • 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

1 Year
9.1% p.a

 

3 Year
 7.6% p.a

 

Inception
9.6% p.a*

Past performance is not an indication of future performance. The above returns are per annum, as of April 30th 2024 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.

  • Investment objective: Passively managed portfolio creating a bond ladder using ten to 15 ASX listed Australian Commonwealth Government Bonds of various maturities.

  • Investment Strategy: The overall portfolio is constructed to target an average weighted maturity similar to the Bloomberg AusBond Treasury 0+Yr Index. Bonds are usually held to maturity and target minimal trading
  • Ideal for those who wish to manage their own asset portfolio and want to  include a lower cost Bond exposure
  • Minimum Investment is $10,000
  • Benchmark is the Bloomberg AusBond Treasury Index
  • View the Target Market Determination for this portfolio

Fees

  • Our investment management fee is 0 to 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

1 Year
-1.7% p.a

 

3 Year
-3.2% p.a

 

Inception
-3.6% p.a

 

Past performance is not an indication of future performance. The above returns are per annum, as of April 30th 2024 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.

 

 

Pie Chart of Nucleus Wealth's Government Bond Ladder portfolio, showing portfolio holdings of 99% Australian Commonwealth Government Bonds, and 1% Cash

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