Portfolio by age: how Australians should invest at every life stage
Drag the slider to your age and see an illustrative allocation — then read why it's built that way and which platform makes sense to use.
Illustrative only — not personal financial advice. Allocations are examples based on industry convention, not a recommendation for your circumstances.
Maximum long-term growth. Short-term volatility is expected and tolerable.
95%
Growth
5%
Defensive
Australian shares
26.6%
Broad ASX exposure. Dividend income with franking credits.
Examples: VAS · A200 · IOZ
International shares
49.4%
Diversified global exposure outside Australia.
Examples: VGS · BGBL · IVV
Satellite / thematic
19%
Higher-conviction bets — sector, factor, or thematic.
Examples: NDQ · HACK · ETHI
Bonds / fixed income
3%
Lower volatility income. Buffers against share market drawdowns.
Examples: VAF · IAF · AGVT
Cash / term deposits
2%
Capital preservation and liquidity. Earns interest.
Examples: BILL · Term deposits · HISA
Within your growth allocation
Core (80%)
Broad market ETFs. Low cost, highly diversified, set-and-forget.
Satellite (20%)
Higher-conviction positions. Sector, factor, or thematic bets.
What is a core/satellite portfolio?
Most financial literature describes portfolios as a single allocation — “70% shares, 30% bonds.” The core/satellite framework adds a useful layer on top: it splits your growth allocation into a boring, reliable core and a smaller, higher-conviction satellite.
Core (80% of growth)
Broad market ETFs. Low cost. Highly diversified. Tracks the market — no active bets. The core does the compounding. You don't need to think about it.
Examples: VAS, VGS, VDHG, DHHF
Satellite (20% of growth)
Higher-conviction positions. A sector you believe in, a factor tilt (quality, value), or a theme (technology, clean energy). The satellite can outperform — or underperform — without sinking the portfolio.
Examples: NDQ, HACK, ETHI, QRE, IEM
The 80/20 split is a guideline, not a rule. Some people go 90/10 (almost entirely passive), others go 70/30. The key principle is that the satellite is small enough that a bad call doesn't materially hurt the overall portfolio.
Note
The glide path: why allocation shifts with age
The shift from growth-heavy to defensive-heavy as you age is called the glide path. The intuition is simple: the longer your investment horizon, the more volatility you can absorb. A 25-year-old with 40 years ahead can ride out a 40% crash and still retire wealthy. A 62-year-old planning to retire in 3 years cannot.
| Age | Growth | Defensive | Profile |
|---|---|---|---|
| 20s | 95–100% | 0–5% | High Growth |
| 30s | 85–95% | 5–15% | Growth |
| 40s | 75–85% | 15–25% | Growth |
| 50s | 55–65% | 35–45% | Balanced |
| 60s+ | 30–45% | 55–70% | Conservative |
These are guidelines, not rules. Someone who retires at 55 should start de-risking earlier. Someone still working at 68 with other income sources (pension, rental income) can hold a higher growth allocation than their age alone suggests. The point of the glide path is to make sure a major market event doesn't force you to sell growth assets at the worst time.
The lazy portfolio: one fund, no tinkering
If the idea of managing multiple positions feels overwhelming, Australia has two excellent all-in-one options that do the allocation for you inside a single ETF:
VDHG — Vanguard Diversified High Growth
90% growth / 10% defensive · MER ~0.27%
Holds seven underlying Vanguard funds. Automatically rebalances. Distributes income quarterly. Best for investors who want a complete portfolio without managing individual allocations.
DHHF — BetaShares Diversified All Growth
100% growth / 0% defensive · MER ~0.19%
100% equities — no bonds. Cheaper than VDHG. Suitable for younger investors who want maximum growth exposure without managing separate funds. Lower MER than VDHG.
Tip
Which platform to use
Platform choice comes down to which ETFs you want to buy and how often you trade. Zero-brokerage platforms are the cheapest entry point — but they only cover their own ETFs. A flat-fee broker like Selfwealth makes sense once your positions are large enough that $9.50 is negligible.
$0 on Vanguard ETFs
Min: $500
Zero brokerage on Vanguard's own ETFs (VAS, VGS, VDHG, VAF etc). Automatic reinvestment available.
$0 on BetaShares ETFs
Min: $500
Zero brokerage on BetaShares ETFs (A200, DHHF, NDQ, AGVT etc). Clean interface for beginners.
$9.50 flat
Min: None
Flat $9.50 per trade regardless of size — makes sense once your positions are $2,000+. Access to all ASX-listed ETFs.
$2 under $1,000
Min: $50
Designed for small, regular investing. $2 brokerage under $1,000. Limited to 7 themed ETF options.
Included in fee
Min: $2,000
Robo-adviser. Builds and rebalances an ETF portfolio for you. Annual fee of ~0.5–0.66%. Suits people who want zero involvement.
Included in fee
Min: $5
Rounds up everyday purchases and invests the spare change. $3.50/month fee. Best for building the habit — not the primary vehicle for larger portfolios.
Important
Don't forget super — it's already your largest investment
For most Australians, superannuation holds more money than any other investment. Yet most people leave it in the default “balanced” option — often 70% growth / 30% defensive — regardless of their age or risk tolerance.
At 25 in a default balanced fund, you're leaving decades of growth on the table. At 55, a high-growth option inside super might be too aggressive. Log into your super fund, check the investment option you're in, and compare it to the allocation the visualiser above suggests for your age.
Salary sacrificing into super is also one of the most tax-effective moves available to Australians — contributions are taxed at 15% instead of your marginal rate. Use the salary sacrifice calculator to see your annual tax saving, or see the salary sacrifice guide for the full picture. The super at retirement calculator will show you how your current balance projects to retirement age.
Frequently asked questions
What is a core/satellite portfolio strategy?
A core/satellite portfolio divides your investments into two parts. The core (typically 70–80% of your growth allocation) is a diversified, low-cost foundation — broad market ETFs covering Australian and international shares. The satellite (20–30%) is for higher-conviction positions: a specific sector, country, factor, or theme you have a view on. The core reduces the damage if your satellite bets are wrong; the satellite gives you the chance to outperform.
Why does the recommended allocation shift with age?
Time horizon drives risk tolerance. At 25, a 40% market correction is painful but recoverable — you have 40 years of compounding ahead. At 62, the same correction in a 100% growth portfolio could delay retirement by years. The glide path (gradually reducing growth exposure as you age) is designed to protect capital as you approach the point where you'll need to draw on it. It's not about avoiding all risk — it's about taking the right amount of risk for your timeline.
What is the difference between VAS, VGS, VDHG and DHHF?
VAS (Vanguard Australian Shares) tracks the ASX 300 — Australian companies only. VGS (Vanguard International Shares) tracks global developed markets excluding Australia. Together, VAS + VGS give you a globally diversified portfolio you can weight yourself. VDHG (Vanguard Diversified High Growth) and DHHF (BetaShares Diversified All Growth) are all-in-one funds that hold a mix of asset classes in a single ETF — ideal if you want a set-and-forget option without managing individual allocations.
Should I use Vanguard Personal Investor or BetaShares Direct?
Both offer zero-brokerage trading on their own ETFs, making them the cheapest entry point for new investors. Vanguard Personal Investor suits people building around VAS, VGS, VAF, or VDHG. BetaShares Direct suits those using A200, DHHF, NDQ, AGVT, or other BetaShares products. If you want both Vanguard and BetaShares ETFs, you'll pay brokerage somewhere — Selfwealth's flat $9.50 per trade makes sense once your positions are large enough.
Do I need a financial adviser to build a portfolio?
Not necessarily. A simple two-fund portfolio (e.g., VAS + VGS in a 30/70 split, or just VDHG) is entirely manageable without advice. Where an adviser adds value: complex tax situations (trusts, business income), estate planning, SMSFs, or if you're close to retirement and need a personalised drawdown strategy. For most Australians in their 20s–40s building a straightforward ETF portfolio, the advice fee often exceeds the benefit.
What is the 'lazy portfolio' and does it work in Australia?
The lazy portfolio is the idea that a single diversified fund — bought regularly, held for decades, never tinkered with — outperforms most active strategies after fees. In Australia, VDHG and DHHF are the closest equivalents. Both hold global and Australian shares, bonds, and cash in a single ETF. The evidence strongly supports this approach for most retail investors: low cost, automatic rebalancing, and no behavioural mistakes from constant tinkering.