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
Personalise Your Portfolio
Screens
You can exclude the below to customise your portfolio
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.
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.
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 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)
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
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
3 Month 5.6% p.a
1 Year 22.5% p.a
Inception 15.7% p.a*
Past performance is not an indication of future performance. The above returns are per annum, as of August 31st 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.
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.
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
3 Month 4.3% p.a
1 Year 9.5% p.a
Inception 9.0% p.a*
Past performance is not an indication of future performance. The above returns are per annum, as of August 31st 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.
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
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
3 Month -1.6% p.a
1 Year 0.5% p.a
Inception -4.1% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of August 31st 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.
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.
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
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
3 Month 5.6% p.a
1 Year 22.5% p.a
Inception 15.7% p.a*
Past performance is not an indication of future performance. The above returns are per annum, as of August 31st 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.
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.
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
3 Month 4.3% p.a
1 Year 9.5% p.a
Inception 9.0% p.a*
Past performance is not an indication of future performance. The above returns are per annum, as of August 31st 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.
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
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
3 Month -1.6% p.a
1 Year 0.5% p.a
Inception -4.1% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of August 31st 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.