facebookIf fund managers cannot consistently outperform the markets, why does Endowus choose to buy funds instead of the msci index or broad market index? - Seedly

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Anonymous

18 Mar 2020

βˆ™

CPF

If fund managers cannot consistently outperform the markets, why does Endowus choose to buy funds instead of the msci index or broad market index?

And I know that we should buy when market is down, but I have deployed all available cash and CPF already. what should I do next?

Discussion (3)

What are your thoughts?

Shengshi Chiam, CFA

Shengshi Chiam, CFA

13 Mar 2020

Personal Finance Lead at Endowus

Hi!

Not sure if I understand you correctly, but you may be asking why are we using active funds rather than indexed funds like the MSCI index.

For Cash and SRS, we are using Dimensional World Equity, which is benchmarked against the MSCI All Country World Index. It is overweighed research-backed factors that will improve investment returns long term, such as small cap/price to book/profitability. They have done it systematically and at a very low cost - 0.43% for 11,000 securities is very competitive relative to standard fund products.

https://endowus.com/support/360005752553-fund-r...

For CPF, we try to work on getting the lowest cost, diversified fund possible, which is why we brought in the lionglobal S&P500 funds, and will be bringing in the infinity global stock index, which tracks the MSCI world index that you are talking about. All these are exclusive to Endowus now. We try to improve on the CPF investable universe. Hope this helps!​​​

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