Diversifying away from Aussie banks

Financials dominate the ASX200, comprising 35.4% of the index. This compares to 14.7% of the S&P500. Andrew Fleming, Deputy Head of Australian Equities at Schroders Australia, points out, they are a big part of the index - because they make a lot of money. Here he questions whether this will continue.

Risks are clearly skewed one way, being down rather than up, from the starting point. The banks are not likely to make a lot more money than they do today in the future

In the short video above Fleming discusses this in more detail and also shares one simple strategy for achieving better diversification when investing in the ASX-listed banks.

More information 

The Schroder Equity Opportunity Fund is an index unconstrained, all cap strategy managed by the highly rated Schroders Australian Equity team. Click here to visit the website.