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Natalie Leong

10 Apr 2021

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What are your views on buying REITs using robo investor?

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What are your thoughts?

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For Robo REITs wise, I will recommend Syfe Reit+ without risk management. This is because they are buying into the reits directly. However, for StashAway, you're buying into the ETF. which there are costs incurred.

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From my perspective, the alternative is buying a REIT ETF because both offer a similar product, that is a ready-made diversified REIT portfolio in exchange for management/platform cost. If so, the robo investor may be more tax efficient since you hold the units directly, albeit through a custodian account. The REIT ETF will need to pay corporate taxes before it can distribute the dividends.

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If you are comfortable with picking individual REITs and buying these directly as an alternative, then the real issue is whether doing so is more cost efficient. The robo advisor allows you to drip small amounts into the investment portfolio. If you are buying individual REITs directly, brokerage fees/commissions require you to invest a certain sum before the investment becomes cost efficient.

I invested 100K into SYFE REITS plus and the main reason why I do that is because it already helps m...

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