A new exchange-traded fund (ETF) is listing on the ASX next month, specifically targeting investors with "a very high tolerance" for risk in return for massive potential growth.
BetaShares Diversified All Growth ETF (ASX: DHHF) will be released for trade on 16 December, marketed as a portfolio consisting entirely of growth assets.
The ticker DHHF is currently used by BetaShares Diversified High Growth ETF (ASX: DHHF), but after the close of trade on 15 December, the investment strategy will switch for a fresh start.
The new fund will hold 8,000 different companies from 60 exchanges, and will be agnostic on market capitalisation and country-of-origin.
"It offers investors exposure to a diversified portfolio with the potential for high growth in a single trade," a BetaShares spokesperson told The Motley Fool.
"The target investor is an investor seeking the potential for high growth, who has a very high tolerance for risk and is willing to accept a high degree of volatility."
Given the risky nature, the investment firm suggested younger clients with a long investment timeframe might be best suited to this new product.
Image source: Getty Images
Is this ETF actually '100% growth'?
Despite BetaShares' claim that the fund is 100% growth, The Motley Fool understands the starting portfolio will include Australian banks like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).
Mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), which are more cyclical than growth, are also in the mix.
United States holdings include growth darlings like Apple Inc (NASDAQ: AAPL) and Amazon.com, Inc (NASDAQ: AMZN) — but also 183-year-old Procter & Gamble Co (NYSE: PG) and 134-year-old Johnson & Johnson (NYSE: JNJ).
The ETF's holdings outside the US and Australia also raise some eyebrows, with stocks like 115-year-old Nestle SA (SWX: NESN), 124-year-old Roche Holding AG (SWX: RO) and Toyota Motor Corp (TYO: 7203) in the fold.
Afterpay Ltd (ASX: APT), Alibaba Group Holding Ltd (NYSE: BABA), Tencent Holdings Ltd (HKG: 0700), Taiwan Semiconductor Mfg Co Ltd (TPE: 2330) and JD.Com Inc (NASDAQ: JD) are also believed to be in the starting stable to actually represent growth shares.
The management fee is only 0.19% per annum, which is relatively low for an actively managed ETF.
The geographic split is 37% Australian shares and 63% overseas stocks to start with.
Betashares is the most popular ETF provider on the ASX so far this year, attracting $4.35 billion into its products to the end of October. Vanguard is not far behind, enjoying $4.33 billion of inflow.
