An experiment started in January 2021 to compare performance of Endowus Equity100, Syfe Equity100 and StashAway SRI36%.
Disclaimer: This post is just for educational sharing purposes. Please do your own due diligence on any products introduced in this post.
I started my investment journey with robo advisor when I invested in Endowus 100% Equity Portfolio using CPF OA in July 2020. Since then I came across other robo advisors like Syfe and StashAway. I was curious to find out how the investment strategy of each robo advisor performs and how they compare with each other. Hence I decided to start a Robo War Experiment (RWE) in January 2021.
Intend to continue monthly DCA until December 2021.
Monthly Return =
(Current Month End Portfolio Value + Current Month Redemption + Current Month Dividends) / (Previous Month End Portfolio Value + Current Month Investments) - 1
Quarterly Return =
(1 + Month 1 Return) x (1+ Month 2 Return) x (1 + Month 3 Return) - 1
YTD Return =
(1 + Jan Return) x (1 + Feb Return) x ... x (1 + Current Month Return) - 1
Annualized Internal Rate of Return (IRR) =
XIRR(Values, Dates) function in Excel
All portfolio values are expressed in SGD, so I have picked the SGD numbers from Syfe Equity100 and StashAway SRI36% portfolios.
The selected benchmark indices are MSCI World Index, MSCI All Country World Index (ACWI) and S&P 500. Their performance numbers are simulated with the exact same initial lumpsum and monthly DCA amounts on the same dates as that of the 3 robo advisors.
All the 3 robo advisors' portfolios are globally diversified, so the more approprate benchmark indices to compare with would be MSCI World Index and MSCI ACWI. However, S&P 500 is also a popular index many people used as benchmark.
The simulated benchmark performance numbers don't include trading cost, so real life performance may be lower than the simulated numbers depending on the total expense ratios, tracking errors, brokerage charges, bid/ask spreads, and any other fees for the corresponding index ETFs or funds used.
What I didn't cater for in the simulated numbers are the dividend returns, simply because I don't have a source of total return data for all 3 indices.
Since the indices are expressed in USD, I have taken FX rate into account for the benchmark numbers.
Source of indices and FX rates are taken from the following links:
MSCI World Index - https://www.investing.com/indices/msci-world-historical-data
FX Rates - https://www.x-rates.com/historical/
I had provided mid-year performance update on Seedly community in July 2021, and continued to provide monthly updates since then. Here are the links to these updates for your reference, but all relevant info are now in this Opinion post:
September 2021 - https://seedly.sg/posts/robo-war-experiment-september-2021-update
I would be updating performance in this Opinion post in future. Plan to update monthly until December 2021, and quarterly from 2022 onwards.
Here is the November 2021 Update:
Observation period is too short to make a conclusive verdict on their relative performance.
View 6 other comments