DHHF ASX DHHF Review – My stock prediction

DHHF ASX DHHF : Thinking about investing in the stock market but feeling overwhelmed by all the choices? You’re not alone. Many Australians, especially beginners, are interested in growing their wealth but might not know where to start. This is where Exchange Traded Funds (ETFs) come in. ETFs offer a way to invest in a basket of companies all at once, spreading your risk and potentially increasing your returns.

One popular option for Australian investors is the BetaShares Diversified All Growth ETF, also known by its ASX code DHHF. This article will take a deep dive into DHHF, exploring its features, how it works, and whether it might be a good fit for your investment goals.

What is DHHF?

DHHF is an all-in-one investment solution. It’s a type of ETF that tracks a specific index, in this case, an index of global shares. By investing in DHHF, you’re essentially buying a tiny slice of ownership in thousands of companies spread across different countries and industries. This diversification helps to manage risk, as a downturn in one sector might be balanced by growth in another.

How Does DHHF Work?

Imagine a basket filled with colorful candies. Each candy represents a different company. DHHF is like buying a small handful from that basket, getting a mix of different flavors (companies) all at once. The specific mix of companies in DHHF is based on the index it tracks. This index is constantly changing as companies grow, shrink, or merge, but the overall goal is to represent a broad spectrum of the global stock market.

Benefits of Investing in DHHF

There are several reasons why DHHF might be an attractive option for investors:

  • Diversification: As mentioned earlier, DHHF spreads your investment across many companies. This helps to reduce risk, as a poor performance by one company won’t significantly impact your overall portfolio.
  • Low Cost: Compared to actively managed funds where a fund manager picks stocks, ETFs like DHHF typically have lower fees. This means more of your money goes towards potential growth.
  • Convenience: Buying and selling DHHF is just like buying or selling any other stock on the ASX. It’s a simple and convenient way to gain exposure to a global market.
  • Long-Term Growth: Historically, the stock market has trended upwards over time. By investing in DHHF for the long term, you’re hoping to benefit from this potential growth.

Things to Consider Before Investing in DHHF

While DHHF offers many benefits, it’s important to understand its limitations and potential drawbacks:

  • Market Volatility: The stock market can be volatile, meaning prices can fluctuate significantly in the short term. DHHF is not immune to these fluctuations. You should be prepared for potential ups and downs.
  • No Guarantees: Past performance is not necessarily indicative of future results. There’s no guarantee that DHHF will always deliver positive returns.
  • Passive Investment: DHHF tracks an index, meaning you’re not actively choosing individual companies. This can be a benefit for diversification but might not appeal to investors who want more control over their portfolio.

Is DHHF Right for You?

The decision of whether or not to invest in DHHF depends on your individual circumstances and investment goals. Here are some things to consider:

  • Risk Tolerance: How comfortable are you with potential losses? DHHF is a long-term investment, but the stock market can be volatile in the short term.
  • Investment Horizon: How long do you plan to invest your money? DHHF is best suited for long-term goals like retirement savings.
  • Investment Knowledge: Do you feel comfortable with the concept of ETFs and the risks involved in the stock market?

Alternatives to DHHF

DHHF is not the only all-growth ETF available on the ASX. Here are a couple of alternatives to consider:

  • Vanguard Diversified High Growth Index ETF (ASX: VDHG): This ETF is similar to DHHF but has a slightly different weighting of companies.
  • iShares Core Global Aggregate ETF (ASX: IOZ): This ETF offers even broader diversification by also including some bond exposure.
DHHF ASX | DHHF Review - Mystockprediction

Main sectors in witch betashares dhhf asx is mainly invested

Financials19.4%
Information Technology15.8%
Healthcare11.2%
Consumer Discretionary10.7%
Materials10.0%
Industrials9.6%
Communication Services6.7%
Consumer Staples5.9%
Real Estate5.0%
Other5.6%

The information above was taken from Betashares official website.

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Top 10 holdings of DHHF ASX

RankStockAllocation
1CBA .ASX3.36%
2CSL .ASX2.48%
3BHP .ASX1.96%
4Apple Inc.(AAPL)1.74%
5NAB .ASX1.71%
6WBC .ASX1.7%
7Microsoft Corp.(MSFT)1.66%
8ANZ .ASX1.45%
9MQG .ASX1.26%
10WES .ASX1.17%
DHHF ASX

What are DHHF ASX benefits and drawbacks?

Benefits of DHHF ASX

Emerging market exposure
Price is cheap
Fully Diversified
Opportunities of DRIP
Australian product

Drawbacks of DHHF ASX

This ETF includes a large number of Australian companies.
Less or almost no past returns
Some companies are stable and never move

Lets do VDHG vs DHHF

We’d like to give you more information about VDHG before comparing it to DHHF, after which we’ll give our final decision. SO,

What is VDHG ?

Well, Vanguard created the ETF VDHG. Seven well-known Vanguard money were put together to create this ETF. This ETF is popular as a passive investment scheme and is known as the VDHG ETF.

What are the seven VDHG vanguard funds?

  • Australian Shares Index Fund from Vanguard (Wholesale)
  • Index Fund for Vanguard International Shares (Wholesale)
  • AUD Class of the Vanguard International Shares Index Fund (Wholesale)
  • Global Aggregate Bond Index Fund from Vanguard (Hedged)
  • International Small Companies Index Fund from Vanguard (Wholesale)
  • Index Fund for Vanguard Emerging Markets Shares (Wholesale)
  • Australian Fixed Interest Index Fund from Vanguard (Wholesale)

What is the VDHG fees ?

The fees for VDHG are 0.27%, so if you invested $10,000 in 2022, your total yearly VDHG fees would be only $27.

What are returns or VDHG performance ?

The average return for VDHG over the past 10 years has been around 12% pa, and over 7% over the past 15 years. A important return of over 26% was noted in 2021. Everyone loves going to invest in VDHG because of the overall good returns.

DHHF and VDHG Comparison

ComparisonVDHG (Vanguard)DHHF (BetaShares)
Equity Allocation (Growth)90%100%
Bond Allocation (Defensive)10%0%
Australian Equity Allocation36%37%
Global Equity Allocation54%63%
Management Fees (MER)0.27% p.a.0.19% p.a (0.28% p.a. effective cost)
HedgingYesNo
Constructed with ETFs or Managed FundsManaged FundsETFs

Which one is better

Well, both dhhf and vdhf have solid fundamentals and have done well in the market before and after COVID-19. Both ETFs have very clever allocations that help them stand out from the competition. Both have a high potential for growth and are in demand.

So both are approved from our point of view. If you have more money, invest in VDHF; if you have less, invest in DHHF. easy and simple.

Alternatives to VHDG & DHHF

The best alternatives to both of these are A200 and VGS, as both of these ETFs have exposure to both domestic and foreign companies. FAIR and ETHI are some additional options.

Key Features of DHHF ASX

  • Global Equities Diversification: DHHF ASX spans over 8,000 equities listed on 60+ global exchanges, ensuring a diversified portfolio. This diversity acts as a safeguard, mitigating the impact of any single company or country on the overall performance of the ETF.
  • Cost-Efficiency: With a total expense ratio (TER) of 0.27%, DHHF ASX stands out as one of the most cost-effective options in the market. Investors benefit from a lower TER, retaining more of their returns.
  • Passive Management: The ETF adopts a passive management approach, mirroring a benchmark index without attempting to outperform the market actively. This minimizes the risk of underperformance due to managerial decisions.
  • Transparency and Liquidity: DHHF ASX is both transparent and liquid. Investors enjoy easy access to information about its holdings and can efficiently trade its shares.

Benefits of Investing in DHHF ASX

Investing in DHHF ASX comes with a host of advantages:

  • Long-Term Capital Growth Potential: Positioned for long-term capital growth, DHHF ASX offers investors the opportunity to grow their wealth over time through a diverse global equities portfolio.
  • Diversification: The diversified portfolio helps mitigate risks associated with the performance of individual companies or countries, promoting stability in the ETF’s overall performance.
  • Cost-Effectiveness: The low TER ensures that investors retain a greater portion of their returns, enhancing the cost-efficiency of the investment.
  • Passive Management: By adopting a passive management approach, DHHF ASX reduces the risk of underperformance due to active management decisions, aligning with a steady and predictable investment strategy.
  • Transparency and Liquidity: The transparent nature of the ETF, coupled with its liquidity, makes DHHF ASX an appealing choice for a diverse range of investors.

Risks of Investing in DHHF ASX

While DHHF ASX offers compelling benefits, it’s essential to be aware of associated risks:

  • Market Risk: The ETF is influenced by global stock market movements, and its value can fluctuate in tandem with market trends.
  • Currency Risk: DHHF ASX invests in equities denominated in various currencies, exposing its value to changes in exchange rates.
  • Concentration Risk: Concentrated in specific sectors like technology and financials, the ETF faces heightened risks associated with those sectors’ performance.
  • Emerging Market Risk: Investments in equities from emerging markets can be more volatile compared to those from developed markets, adding an additional layer of risk.

Is DHHF ASX Right for You?

DHHF ASX is an excellent fit for investors who:

  • Seek Long-Term Capital Growth: With a focus on long-term growth potential, the ETF aligns with investors looking to build wealth over time.
  • Have a High Risk Tolerance: Investors comfortable with a higher risk threshold can benefit from DHHF ASX’s growth-oriented strategy.
  • Embrace Global Equities Risks: Those who understand and are comfortable with the inherent risks of global equities will find DHHF ASX a suitable investment avenue.
  • Desire a Low-Cost and Passive Solution: Investors in search of a cost-effective and passive investment solution can leverage the benefits of DHHF ASX.

Investing wisely involves weighing the benefits against the risks. DHHF ASX, with its strategic approach and diverse portfolio, provides an opportunity for growth with due consideration of potential challenges.

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