Why does kōura use ETFs?

We invest in ETFs for three reasons: they provide exposure to a broad range of asset classes; have lower costs than actively managed funds, and offer more predictable performance than an actively managed fund. Managing risk is at the core of our philosophy. ETFs allow us to manage the risk in our share portfolios by broad diversification across geographies and asset classes. A diversified portfolio is better insulated against downside risk and evidence suggests that it’s difficult for active stock pickers to consistently outperform the market over time.

We have selected our ETFs based on several criteria: 

  • the prominence and reputation of the ETF manager in the industry: Blackrock, our chosen ETF provider, is the world’s largest fund manager with US$6.84 trillion under management.
  • the ETF’s adherence to ESG principles.
  • to provide a broad geographical and sector coverage which provides diversification across all industrial sectors and geographies.