The growth investment that is dialled up to 11
This interview was filmed Thursday, 8 May 2025
I like my growth investing as I like my Spinal Tap - dialled all the way to 11.
For those who that reference is lost on, I like the growth sleeve of my portfolio to be as aggressive as possible. I'm there to get the maximum possible return and ride the waves, not hedge my bets - there are other parts of my portfolio for that.
That approach, however, requires some other important components. Given that riding the waves will be bumpy, as we have seen over the last few months, a long-term approach is required.
Equally, you don't want to be a portfolio tinkerer; someone who can't help themselves but make adjustments along the way. It is along this dimension that I often get myself into trouble.
How many of you out there sold down during the recent market volatility, only to miss the 12%-up day we saw on the Nasdaq and ensuing rally? It happened so fast, blink and you would have missed it. And therein lies the problem we mere mortals face when presented with bouts of market volatility.
As Matt Cho, Head of Multi-Asset Solutions at Vanguard Australia, points out;
"Research has shown that the vast majority of return for multi-asset investments, upwards of 90%, is driven by that strategic asset allocation decision, where the remaining 10% is typically driven by security selection and market timing.
So getting that strategic asset allocation correct is really going to set you up for long-term risk adjusted return", says Cho.
As part of Livewire's inaugural Growth Series, I sat down with Cho to talk through some of the issues investors face when making growth investments, how Vanguard approaches the task, and the new product they have created to help solve some of the problems - the Vanguard Diversified All Growth Index ETF (ASX: VDAL) - which consists of 100% growth assets.
You can watch the interview above, or read a summary of the key points below.

Interview summary
What does it mean to invest for growth?
For Cho, it’s critical to distinguish between investing for growth and the growth style of investing. The former, he says, is “essentially what we're all trying to achieve as investors – long-term capital appreciation.” This is why shares are considered “growth assets” compared to more defensive options like bonds and cash.
The growth style, by contrast, focuses on selecting stocks with high potential for earnings and revenue growth, often found in innovative sectors like tech.
“It’s often contrasted with value investing,” Cho explains, “which is concentrated in more established sectors believed to be undervalued by the market.”
At Vanguard, investing for growth is underpinned by three core principles: discipline, diversification, and cost.
“Maintaining a long-term perspective is the first step in generating long-term returns,” says Cho.
Diversification matters, too – not just across geographies and sectors, but also styles.
And when it comes to cost: “As an investor, there’s a lot that’s outside of your control… but one thing you can control is what you pay for your investments.”
Secular shifts, not cyclical spikes
Asked where he sees true growth in today’s markets, Cho points to long-term, structural trends rather than short-lived booms.
“A true growth opportunity is one that is showing secular change, not cyclical change,” he says.
One standout theme? Artificial intelligence.
“Our view is that the excitement surrounding AI is warranted,” Cho notes. “However, we believe that the rapid adoption of AI might not take place as quickly as some others would expect.” Even in optimistic scenarios, Vanguard doesn’t expect to see real productivity gains from AI until the late 2020s. Still, its potential is immense. “We still believe that in developed economies, around 30% of working hours will be replaced by AI automation in around 20 years’ time,” he says.
Importantly, Cho isn’t predicting mass unemployment. Instead, he anticipates a reallocation of labour: “We don’t expect that you’ll see a 30% increase in unemployment… a lot of those working hours will get reallocated towards sectors that are less AI-sensitive.”
Why launch a growth-focused ETF now?
Vanguard’s newly launched ETF, the Vanguard Diversified All Growth Index ETF (ASX: VDAL), is designed for investors with a high risk tolerance and a long time horizon. But why launch it now?
Cho explains that the product builds on Vanguard’s history of diversified solutions, which began over 20 years ago and extended to ETFs in 2017. “VDAL is really just an extension of this offer,” he says,
“in recognition that there are investors out there that have the requisite risk tolerance and investment timeframe to justify that 100% allocation to growth assets.”
Crucially, VDAL aims to meet the needs of retail investors who are often underexposed to diversified solutions and may lack the time or inclination to manage portfolios actively. “It’s really these investors that we think can benefit the most from a diversified solution,” Cho says.
Managing risk, behaviour, and the urge to tinker
A key part of Vanguard’s product design is helping investors avoid common behavioural pitfalls - especially the tendency to panic during drawdowns or chase rallies.
“Behavioural finance tells us that investors can be emotional – selling after drawdowns and buying after rallies,” says Cho.
With VDAL, Vanguard focused on transparency and consistency to help counteract those impulses.
VDAL's allocations are based on long-term risk-return expectations. “What we’re really trying to achieve is build that portfolio that’s going to give you returns throughout the cycle,” says Cho. This means avoiding reactive changes during periods of market stress. As he puts it:
“We are not tinkering with the asset allocation on a short-term basis.”
This disciplined approach is backed by research. “The vast majority of return for multi-asset investments, upwards of 90%, is driven by that strategic asset allocation decision,” Cho says. “The remaining 10% is typically driven by security selection and market timing.”
Time in the market vs timing the market
While it’s still early days for VDAL, Cho says it’s performing as expected given the recent volatility. The broad exposure – across domestic, global, and even emerging markets – helps mitigate concentration risk.
Over time, he says, performance will reflect the underlying markets and the benefits of professional portfolio construction. “Returns will be enhanced by the design of our strategic asset allocation as well as our professional rebalancing.”
Cho leaves investors with two timeless lessons from Vanguard’s decades of global experience.
First: “Time in market beats timing the market…Investors that can see through the noise, take a long-term perspective, are typically rewarded with strong risk-adjusted returns.”
Second: Don’t underestimate diversification. “If you are building a portfolio for growth, don’t think too narrowly… that will help with not only your portfolio resilience, but the potential for strong risk-adjusted returns.”
Vanguard Diversified All Growth Index ETF
Vanguard Diversified All Growth Index ETF provides low-cost access to a professionally designed mix of investments, offering broad diversification across a blend of equity markets, providing access to Vanguard’s best investment thinking, in a ready-made portfolio that makes investing simple for you.

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