In this Australian Investors Podcast episode, Owen Rask sits down with Jess Leung from Global X for episode four of the portfolio construction series, this time focusing on the advanced mechanics that shape how a portfolio actually behaves through time.
Jess explains why professional portfolio management is really about managing risk, not chasing returns, and unpacks the key ideas many investors hear but rarely understand clearly: volatility, drawdowns, correlation, Sharpe ratios and the trade-offs that sit behind them. Rather than turning it into a maths lesson, she gives investors a practical framework for thinking about how a portfolio behaves when markets move.
The conversation also explores factor investing, including value, quality, momentum, low volatility and yield, and why these tilts can behave very differently across market cycles. Jess explains why factors are cyclical, why diversification is not just about owning more ETFs, and how two investments that sound different can still move together when markets come under stress.
They finish by talking through rebalancing, correlation, portfolio drift and a real-world example of how satellite ETF additions changed the risk and return profile of a core portfolio. If you want to move beyond beginner ETF ideas and start thinking more like a portfolio builder, this episode is a strong next step.
