facebookWhy does Endowus use LionGlobal Infinity US 500 Stock Index Fund instead of CSPX for its cash portfolio? - Seedly

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Anonymous

09 Feb 2021

Robo-Advisors

Why does Endowus use LionGlobal Infinity US 500 Stock Index Fund instead of CSPX for its cash portfolio?

I can see the argument for using the fund for CPF and SRS, where access is limited. But for cash portfolios, why not just use a cheaper ETF like CSPX?

Discussion (3)

What are your thoughts?

Shengshi Chiam, CFA

Shengshi Chiam, CFA

09 Feb 2021

Level 10·Personal Finance Lead at Endowus

Hi Anon, thank you for the question. It is mainly because of the benefit of using a SGD denominated Unit trusts.

You get

  1. Ability to invest in SGD without the need to do FX conversion

  2. Ability to invest in a fractionalised share of a fund (a feature of unit trust but not ETF) without having to give up legal ownership of the fund

Honestly, if you want to specifically look at the SP500, you may be better off investing in a a UCITS ETF like you suggested as long as you can find a low cost platform that doesn't charge a monthly minimum account fee. We focus on giving a total wealth solution.

And no definitely we don't let our partnership with fund houses drive our client products, rather as an advisor we stand in the shoes of our clients to weigh the trade-offs and give the best portfolios for them.

You can read more about the infinity SP500 fund here. http://sg.endow.us/2OgNb7f

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