Billy Leung's $100,000 ETF portfolio

In this episode of the Australian Investors Podcast, hosts RAS and Billy Leung build two contrasting, theme-based ETF portfolios with a $100,000 hypothetical allocation and a five-year time horizon. Billy’s portfolio centers on the 'AI infrastructure' theme, emphasizing overlooked but critical components of the AI value chain such as data center hardware, cooling systems, and energy materials. He anchors his strategy with the GlobalX Artificial Intelligence ETF (GXAI) at 40%, followed by the AI Infrastructure ETF (AINF) at 20%, copper miners (YRE) at 20%, and the Lithium and Battery ETF (ACDC) at 10%, with a final 10% in Dragon (China-focused AI adopters). His approach reflects a deep structural belief in AI’s long-term growth and a focus on second- and third-order beneficiaries. In contrast, the host’s portfolio embraces 'value investing is back' as its theme, prioritizing low-cost, high-quality ETFs like A300 (20%), U100 (10%), and GARP (10% each for global and Australian versions), while also including defensive assets like currency-hedged US treasuries (USTB) and Australian bank bonds (BANK) to balance risk. The episode blends personal investing stories—Billy’s 20-year hold on Tencent and his regret over selling Meituan—with strategic insights into AI’s evolution, commodity demand shifts, and the importance of diversification across themes and geographies. Both portfolios are designed for long-term structural growth, with a strong emphasis on due diligence and professional advice. Key takeaways include: (1) AI infrastructure—beyond semiconductors and hyperscalers—is a high-conviction, overlooked opportunity; (2) value investing remains relevant, especially through low-cost, quality-focused ETFs like GARP and A300; (3) base and precious metals like copper and gold are poised for structural demand growth due to AI and de-dollarization trends; (4) thematic ETFs should be evaluated not just for exposure but for underlying quality and diversification; and (5) long-term success often comes from patience and conviction, as demonstrated by Billy’s Tencent holding. The episode ends with a call to action for listeners to engage with the portfolios, share feedback, and explore the ETFs’ PDS and fact sheets.