Asked on 20 May 2020
I’m thinking of investing in REITs.
Comparing investing in syfe reit+ or Lion-Phillip S-REIT ETF through ocbc blue chips, which is better for returns? Ever since smartly suddenly announced they’re shutting down on end March my trust for robo advisors have dropped. The only thing attractive is the fees. And yes I know many have said to copy and buy whatever is included in the REITs portfolio but the thing is I don’t have time to manage it. And is it logical to invest in Syfe with bonds or 100% REIT?
Depends on your risk appetite and profile, investment objectives and time period of investment. Find out, have a plan. Then commit and go.
OCBC BCIP cost per transaction is minimum $5 (excluding their current promo). The ETF expense ratio is known.
For Syfe REIT+, it tracks a different index and the cost is monthly on the total investment amount.
Both allow you to do monthly investments.
With Syfe’s REITs + Bonds, it is less volatile versus 100% REITs.
Both the ETF and 100% REITs portfolio have baskets of REITs but still have concentration risk in the REITs sector.
For Syfe, dividends are reinvested until you hit minimum Black status. ($20K invested or value)
For BCIP, the dividends are paid out as and when the ETF pays them.
If you can accept the cost of BCIP and do not want to take additional risk or have lesser trust in robos, go for BCIP.
You can always change your mind later on.
The point here is to start investing now.
3 more comments
21 May 2020
Hello there! Syfe REIT+ tracks the SGX's i-Edge S-REIT 20 index, which measures the performance of the 20 largest and most tradable REITS in Singapore. When you invest in the REIT+ portfolio, you get to own actual units of these REITs.
Unlike OCBC's BCIP, there is no minimum investment to get started. There are no buying and selling transaction fees as well with REIT+. For BCIP, there is a charge of 0.3% of the total investment amount or $5 per counter per transaction, whichever is higher. If you are planning to invest regularly, REIT+ is by far more cost effective.
To boost your returns, dividends are automatically reinvested for Blue tier clients. That said, there are no withdrawal fees or lock-in periods. If you wish, you can withdraw your dividends at any time.
As Matthew mentioned, whether to choose 100% REITs or REITs with bonds will depend on your personal risk appetite. Our article here provides more guidance on how to choose as well.
Finally, while Smartly's closure is unfortunate, rest assured that Syfe has stringent measures in place to safeguard our clients' money and assets. As a CMS license holder, we have met all the stringent requirements and standards set by MAS to prevent a bankruptcy event from happening. This includes meeting the minimum capital requirement to ensure that Syfe has sufficient daily cash flow to meet all operational needs. We have elaborated on this point previously on Seedly. You can refer to more details here.
3 more comments
27 May 2020
27 May 2020
Lion seems very o.k., but every performance chance (dividends + stock price appreciation in this case) comes with it's own risks. Historically for it's recent inception date is somehow (?) cheap, but the general situation because of the C-crisis is very unclear. REITs particularly sagged a lot, ca. 50% of price dip however already recovered...
Im personally invested in Syfe reit portfolio and made the switch to the 100% reit. This is because my investment horizon is around 20-30 years and so I'm ok with the market volatility. If your investing horizon is shorter or prefer to have a more 'risk managed' approach then do consider opting for the portfolio with bonds. The risk profile is set at 15% and they will optimise the portfolio according to market conditions for eg. Higher allocation of reits when markets are doing well or higher % of bonds when markets are more volatile (like now).
I had a similar question some time back regarding the Nikko AM Asia Ex Japan Reit ETF. Do note that on top of the individual fees for the reit, there will be an expense fee for the ETF as well.
All in all, past returns cannot be guaranteed. Take a look at the reits that are inside each portfolio and assess which product is better suited for you. All the best!
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