Article / 13 October 2016 at 9:46 GMT

ETF Portfolio Update: Positive returns continued in Q3

CIO / Saxo Private Bank
  • All four ETF portolios yielded positive returns in Q3
  • We have cut gold producer exposure by half for Q4
  • Bonds allocation lifted across core, high-yield, EM

Shenzhen, China
Emerging market bonds and equities have provided solid returns this year. Photo: iStock 

By Teis Knuthsen

In this comment, I update our ETF portfolios with returns up until the end of the third quarter.
The four ETF portfolios are constructed as global, multi-asset portfolios with the European investor in mind. In general, we aim to provide a transparent, familiar and robust asset allocation universe, suitable for medium-term to long-term investors. 

The ETFs are UCITS compliant and approved for distribution in most European countries. You can read more about the portfolios here.

All four portfolios yielded positive returns in Q3, ranging from 0.2% for the Conservative portfolio to 0.7% for the Aggressive portfolio. Year-to-date returns range from 6.5% to 5.6%, reflecting that equity returns moderate this year. 

Returns have been reasonably high this year, ranging from 9.4% to 13.4%. 

Portfolio returns

Source: Saxo Bank, Bloomberg

Looking at year-to-date returns, portfolio performance is driven particularly by longer-dated government bonds, high-yield and emerging market bonds, as well as gold producers. Global equities are up by just 1.8% so far, but our exposure to minimum volatility equities – in both developed and emerging markets – have lifted our total return here considerably.  

Portfolio returns YTD
Source: Saxo Bank, Bloomberg

Going into the fourth quarter, we have made just a few adjustments to the portfolios. We have cut exposure to gold producers from 10% to 5% in all four portfolios and lifted the allocation to government bonds, high-yield credit and emerging market bonds. 

— Edited by Michael McKenna

Teis Knuthsen is CIO of Saxo Private Bank
Bluesboy2 Bluesboy2
Can this portfolio be constructed in USD denomination? Given the downward pressure on EUR, one is looking for that option.
Teis Knuthsen Teis Knuthsen
Hi, that's certainly possible, but we probably won't do it online. You are welcome to contact me at, or get in touch through your normal Saxo contact.
PatouDesuite PatouDesuite
I forgot the ETF Tools, or how to be consistantly inform of the change in allocation.
Jgl51 Jgl51
You should also show, in addition to returns, maximum loss and number of months needed to recover. Thanks for sharing this ETF portfolio


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