Hi Community, if I have $100 USD to invest each month, would it be better to invest in a S&P500 ETF or a Robo-Advisor portfolio like Syfe?

Im currently a student and have about $100 USD to invest each month. I have looked up the historical returns of both the S&P500 and the projected returns by Syfe and it seems that the S&P 500 has higher annual returns.

However, my concern is the fees involved. For the S&P500 via FSMOne RSP, the fee is a minimum 1 USD which is about 1% as compared to the 0.65% fee with Syfe.

Considering this, would it still be advisable to go with the S&P500 ETF?

Thank you!

FSMOne Fundsupermart Syfe

2

Discussion (2)

What are your thoughts?

Learn how to style your text

Tan Bing Hui

05 Sep 2023

Maybe consider syfe trade. 2 free trades per month and allow fractional trading. So you can almost fully utilise your 100 usd every month

Reply

Save

Gordon Lim

31 Jul 2020

I think you are comparing between say Vanguard S&P500 ETF vs Syfe's Equity100 portfolio. For starters, last I checked that Syfe portfolio composition on S&P500 comes down to only around 15%. It has around 85% US stocks and then rest of the world. The portfolio covers like 1500 stocks total. Unless you are looking for diversification to a similar degree, then it'll be hard to justify the 0.65% management fee that you'll incur with syfe. Which if you compare to say a combination of FSMOne that has 0.02% per transaction (or $1 whichever higher for their regular savings plan) and Vanguard S&P500's 0.03% expense ratio, it is a big difference.

And returns wise, Syfe's equity100 backtested 13.4% average returns for the past 10 years compared to S&P500 13.2%

Reply

Save