It's important to consider how much diversification an investor needs and which assets can generate returns without compromising growth potential. I want to highlight a specific ASX-listed exchange-traded fund (ETF) that could provide a comprehensive solution in a single portfolio.
That investment is the BetaShares Diversified All Growth ETF (ASX: DHHF).
I'm not trying to say it's going to be the highest-performing fund on the ASX over the next few years. But it could be one of the simplest choices for investors wanting to invest in shares without having to make allocation decisions.
Let's get into what makes it so attractive as an investment consideration.
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Highly diversified
The aim of this fund is to provide exposure to an array of different types of shares, but no bonds, unlike the Vanguard Diversified High Growth Index ETF (ASX: VDHG). It does this by investing in a few different funds itself.
At the end of June, it was invested in the following funds with these allocations:
- Australian shares (37.2%)
- US shares (40.5%)
- Developed markets, excluding the US (16.3%)
- Emerging markets (6%)
As you might expect with a fund like this, it's invested across a number of markets, including the US, Australia, Japan, China, Canada, the UK, India, Germany, and Taiwan.
This geographic spread means the business is invested in companies like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), Nvidia, Microsoft, and Amazon.
In terms of sector diversification, I like how the fund is invested in a variety of areas. The following industries have a weighting of approximately 9% or more: financials (24.3%), IT (14.8%), industrials (10.4%), consumer discretionary (9.6%), healthcare (9.1%), and materials (8.9%).
It's diversified in a number of ways, but that hasn't reduced its ability to produce returns.
Good returns
By being 100% invested in shares, the fund has been able to capitalise on the returns generated by the different asset classes since its inception in December 2020.
Since its inception, the ASX ETF has returned an average of 11.76% per year to June 2025. Over the three years to June 2025, it produced an average return of 16.4% per year.
By having a diversified portfolio, it's able to produce strong returns for investors, but it's not too exposed to one sector or country, which helps reduce the risk of one area being too negative for the fund.
Ultimately, investing is about making returns, so I'm pleased with how the fund has performed, though past performance is not a guarantee of future performance.
Low fees
One of the best benefits of investing in a fund like this is that it's created in a low-cost way.
In fact, BetaShares boasts of this fund having the lowest fee among all-in-one diversified ASX ETFs available to Australians.
The management fee is just 0.19% per year, which is very low.
The lower the fee, the more of the returns that stay in the hands of investors rather than being taken by a fund manager. This low cost is appealing, helping the overall net returns stay as high as possible.
