What are your thoughts on the new Syfe Select?

Redundant? Feels like one is better off investing via brokerage for what they are trying to do

Discussion (12)

What are your thoughts?

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The Frugal Fox, sharing ideas @ the-frugal-fox.com

09 Sep 2021

You have a point. For investors who just want to buy ETFs as a one-off transaction, it's more cost effective to use a brokerage.

But say there are 4 ETFs you want to buy, and you want to DCA $500 each month (so $125 into each), it will be about $1.75 per month in Syfe fees vs $10 in brokerage commissions.

So it depends on how you want to invest.

With Syfe, there are also some extra features. Like info on your custom portfolio's top holdings, historical returns etc, on a portfolio level. Quite hard to figure that out on your own using a brokerage.

If you're interested to find out more, check out my review here :) https://the-frugal-fox.com/2021/09/07/is-the-ne...

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thefrugalstudent

08 Sep 2021

Founder at thefrugalstudent.com

Hi Anon,

For DIY investors, you're right - it's basically redundant because of Syfe's recurring and arguably higher management fee that is changed in place or regular broker fees like commissions or FX conversions.

But I think this move by Syfe is wise because it will appeal to people who already invest or are thinking about starting to invest with Syfe.

It gives them the option to customise their portfolio in a similar way a DIY investor would without having to deal with a broker, which I think is a big part of what makes DIY investing seem scary to some.

It also provides the convenience of consolidating all of their investments in a single platform rather than have to deal with keeping track of multiple portfolios.

Regards,
thefrugalstudent

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Desmond

07 Sep 2021

If you are planning to invest in ARK funds, I advise you to look elsewhere. ARK ETFs expense ratio are 0.75% and SYFE management fees range from 0.4-0.65% which means you are paying 1.15%-1.4% of fees annually. Doesnt this defeat the purpose of low cost investing? Just my 2 cents worth

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1M45

06 Sep 2021

Every instrument have it purposes. May not be suitable for everyone. Most importantly, is have a open mind to understand the pro and con. How the tools can fit into your financial goal.

The fundamental of robo advisor is to provide a simple , hassle free and allow people who without prior knoweldge of investing to start investing in a diversified portfolio with low starting capital.

It will definitely appeal to certain crowd.

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