facebookStashAway recently changed its portfolios quite significantly, reporting to be now using an all weather strategy in these times of market volatility. What do you guys think of this re-optimisation? - Seedly

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Russell

Dr at SGH

25 May 2020

General Investing

StashAway recently changed its portfolios quite significantly, reporting to be now using an all weather strategy in these times of market volatility. What do you guys think of this re-optimisation?

I'm on their 36% risk index (highest), and the biggest changes made were to exit the S&P 500 & Europe, and buy Gold & KWEB (China Internet) ETFs, now comprising 40% of my portfolio.

No one knows where the market goes from here, but this move locks in losses and misses out on potential upside when the market eventually recovers. The portfolio also seems much less diversified, with KWEB only representing one sector compared to the wider S&P 500 & European markets.

What are your thoughts?

Discussion (4)

What are your thoughts?

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Those are the biggest issue I have with Stashaway:

  1. They are an active manager, not really a passive investing platform

  2. They seem to look at trends, which also mean that they may chase the next hot things like KWEB and overallocate on that.

Seems like outsourcing sector picking and active investing for me, and it seems like additional work needed to "monitor" if their changes are in line with my preference. Wonder how frequently will they do it though, else it is going to be a pain to monitor it.

I am keen on what Stashaway will comment on their portfolio changes as well. The 40% allocation to gold and China is concerning.

Cryotosensei

24 May 2020

Blogger at diaperfinancingfund.blogspot.com

I’m bumping this up because this is a question on my mind and I hope to learn from minds brighter an...

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