To buy S&P500, should I get directly from simple index funds / ETF or some Roboadvisor? - Seedly
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S&P 500 Index

Robo-Advisors

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HC Tang

Asked on 14 Jan 2020

To buy S&P500, should I get directly from simple index funds / ETF or some Roboadvisor?

If I'd like to get a simple index funds / ETF to just buy S&P500, should I just get the "Infinity US 500 stock index SGD"

https://secure.fundsupermart.com/fsm/funds/factsheet/370283/

or via some Roboadvisor ?

In terms of cost, isn't it more cost effective to just get the index funds ? buy and hold for long term ?

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Shengshi Chiam, CFA
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Level 7. Grand Master
Answered on 15 Jan 2020

Hold on. Please get the Irish domiciled S&P500 instead. Those have more favourable dividends withholding tax treatment (15% tax instead of 30% tax), for a marginal increment in total expense ratio. You will be looking at VUSD or CSPX for ticker.

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Jackson Chan
Jackson Chan

22 May 2020

Maybe Irish domiciled S&P500 could be a better options.
Lurkingham

22 May 2020

POEMs has VUSD and i believe this is one of the lowest that I know so far.
Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered on 15 Jan 2020

If you just want to buy and hold the S&P500, consider buying into an Etf that does so with low fees - either VOO or IVV https://stockanalysis.com/what-is-the-best-sp500-etf/. Either of these cost about 0.04% a year which is a fraction of infinity's annual fees. Avoid infinity unless you like paying for convenience (traded in sgd).

Do avoid s27 that is listed on the sgx as it does not have good liquidity. May be an issue when it comes to selling off your holdings.

For robo advisory, you can't really choose the etfs so you will end up with a mix of different ones, depending on your risk profile.

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Julian Wang

15 Jan 2020

If you get VOO or IVV, you'll have to pay the 30 percent witholding tax.
HC Tang
HC Tang

15 Jan 2020

😱
Jackson Chan
Jackson Chan
Level 4. Prodigy
Updated on 22 May 2020

Hi,

Just buy SPDR S&P 500 (SPY) through a brokerage. It is the best ETF tracking S&P 500 and it is also highly liquid. You cannot just buy a single ETF through robo-advisors, unless you use Kristal.AI, which allows users to build up portfolio.​​​

1 comment

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HC Tang
HC Tang

22 May 2020

Thank You!
Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 15 Jan 2020

Hey there, I honestly think you are much better off just buying S&P500 - Technically itself is already a "fund". Buying through other funds means more commissions and fees involved. You can actually open a US brokerage account, such as Interactive Brokers which charges like 1USD comms. Way more logical!

1 comment

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HC Tang
HC Tang

15 Jan 2020

This is so helpful 👍
Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered on 15 Jan 2020

If you just want S&P500, then it is better you buy directly from US exchange instead of through a robo advisor or infinity fund.

The infinity fund charges extra fee on top of commission and the S&P500 ETF fees.​​​

1 comment

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HC Tang
HC Tang

15 Jan 2020

Thank You!
Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 15 Jan 2020

Getting from a provider is cheaper than roboadvisor. Besides fundsupermart, you can also buy such ETFs from other providers like Vanguard. However compare the cost of the fees charged by each provider before deciding to choose one. Theone offering the cheapest fees should be the one you can go for.

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HC Tang
HC Tang

15 Jan 2020

Thank You!