Back in the day financial advisors used to say to work out how...

Back in the day financial advisors used to say to work out how much equity exposure you needed you took your age subtracted it from 100. So for your (close to) two year old that would be 2% bonds. But in reality until she hits about 22-30 don't fret it.

I would look to augment her holdings with international holdings for diversification. ARG will act basically like an index fund to a certain extent but it's all Australian shares. So something like 20% ARG and 80% VGS (vanguard World ex-Australia) will be optimal re-balance it once a year or something. Overall Australia makes up something like 2% of world markets so there is a lot of risk being very exposed to Australia. A good reason to keep the Aus exposure so high though is franking credits.

Also just because I say this, DYOR and see a FA.

You're a good father doing this for her!