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ETF

Bank Account

Kenneth Chia
Kenneth Chia
Level 3. Wonderkid
Answered on 11 Jun 2018
Never heard of any advantage in the method that you mentioned haha

Investments

ETF

Robo-Advisors

Jay Liu
Jay Liu, Diploma in Accountancy at KHEA
Level 6. Master
Answered on 15 Sep 2018
How about both? When you invest in robo-advisors e.g. Smartly, you are investing in US ETF too. So it depends on the market exposure you are looking at. For smartly it's converted to sgd on the site when you view it. There is also a currency impact portion where you can view it too. It changes everyday so when you feel that it's time to cash out, you can do so.

Investments

ETF

Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 24 Apr 2019
May not be a good time to get into ETFs now, especially if you believe the rumours about a recession coming. But if you want to go the ETF route, consider using robo advisories instead. A portfolio will be recommended based on your risk profile

Investments

ETF

Securities

PhillipCapital (POEMS)

Besides what Hariz has mentioned regarding the Infinity US 500 UT, you can also directly buy the vanguard S&P 500 ETF on the NASDAQ exchange on POEMS, although you will have to pay brokerage fees for that as it is an ETF and not a UT. Please don't buy the one traded on SGX as the volume is really bad and you will have a liquidity problem.

AMA The Fifth Person

ETF

Robo-Advisors

Investments

Hi anon, I've recently answered a similar question and did a thorough analysis here! Do take a look :) At the end of the day, ask yourself the usual questions before investing: 1. What's your risk appetite? 2. What's your starting capital? Are you alright with paying for intermediary fees? 3. How much do you know about each type of investment? 4. How much effort and time would you like to spend on the investment? Ultimately, diversification is key! So you can actually invest in BOTH Robo-Advisors and ETFs at the same time :)

Investments

ETF

Robo-Advisors

Hi Dominic! I’ve been doing some research into the common investment options available and considered ETFs vs Robo-Advisors too so here’s my little analysis. Some quick facts about ETFs : - When you buy a stock of an ETF, you are buying into a basket of weighted shares. - They are medium to high risk investments that have high returns. - These are great for passive investors wanting to diversify at a low cost with relatively low effort. - E.g. STI ETF - We actually have a checklist on choosing the right ETF here! Some quick facts about Robo-Advisors : - Digital platforms that make automated and algorithm-driven investment decisions instead of going through an actual, human fund manager. - They are low to high risk investments with low to high returns (customisable). - These are great for passive investors wanting to diversify at a low cost with very little effort. - E.g. StashAway, AutoWealth, MoneyOwl, Endowus - We’ve done up a comparison of all the Robo-Advisor companies in Singapore too, check it out here! TL;DR You should make a long term investment in Robo-Advisors if you’re an investor that: - Don’t mind the lack of control over the exact ETFs or securities you’re investing your money in - Want a purely passive investment option that requires minimal effort but is highly diverse too - Don’t mind paying additional fees for the Robo-Advisor to do the manual work for you - Is new to investing and would like to explore this alternative of investing ! Now moving on to comparing between ETFs and Robo-Advisors: #1 What is being invested: - ETFs: If you’re looking at the STI ETF then it would be a local ETF. It would expose you to companies in various sectors in Singapore, albeit heavily focused on the banking & finance ones. Investing in ETFs as an individual gives you the freedom to DIY. - Robo-Advisors: They would usually invest in a basket of global ETFs (mostly US ETFs), exposing you to the global economy in different sectors. They are usually diversified through a mix of equities and bonds in the portfolio. Some of these ETFs are not available to retail investors too. #2 Degree of autonomy: - Investing in ETFs directly would give you full control and flexibility over which ones you would like to invest your money in. - Investing via Robo-Advisors wouldn’t give you as much control over the specific ETFs/bonds/equities you would like to invest in as the algorithm would help decide for you. Investing through the algorithm may not cater to your specific investment needs compared to investing with a human touch. HOWEVER, you would still be able to customise based on your risk appetite, income, financial goals .etc. #3 Method of investment: - ETFs: You can make a lump sum investment through a brokerage account OR make monthly investments through your bank account or POEMS. - Robo-Advisors: Each Robo-Advisor company has its own method of investment using different algorithms and models. - Investing through Robo-Advisors would usually be easier as there’s no need to submit any documents to the brokerage firm or pass any instructions down. Simply sign up and let the app’s algorithm do the work for you. #4 Costs associated: While the fees associated with Robo-Advisors are indeed lower than investing via a fund manager, you would still incur additional costs compared to buying the ETF and managing your investment portfolio on your own. Therefore, you should evaluate if these Robo-Advisor fees are worth it in the long term. Intermediary fees aside, do take note of minimum investments and transaction costs associated with investing in ETFs as an individual too. Some Robo-Advisor companies might have minimum investments too! Long term investments: You mentioned that you’re looking for a long term investment strategy and both ETFs and Robo-Advisors are great investment options for the long term as they are both liquid. This means that you can sell your portfolio whenever you deem fit, or in your case, when your ‘long term’ timeframe is up. I personally find Robo-Advisors more liquid than ETFs. Since the algorithm would manage your entire portfolio, you can decide to cease the long term investment whenever you like to. Investing in ETFs as an individual means managing and reviewing your portfolio on your own before selling them away. I feel that this process would take a tad bit more effort and time compared to leaving it in the hands of the Robo-Advisor’s algorithm. But at the end of the day, to each his own. More importantly, diversifying is key :) Ultimately, you can invest in both Robo-Advisors and ETFs at the same time as your long term investment strategy as they both help to diversify your portfolio. I hope this was helpful to you!
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Investments

Stocks

ETF

General

Most active fund managers don't tend to outperform the index net of fees. But all index funds don't outperform the index either. There is another case when comparing to markets out of US. The markets tend to be less efficient and active managers usually can perform better making active choices. Index funds are great, but there can always be space for active fund management to be in your portfolio. Especially in harder to access geographies, specialist sector funds, other asset classes such as bonds and commodities.

ETF

Online Brokerages

Investments

Darren Chew
Darren Chew
Level 5. Genius
Updated 4w ago
Based on what i know, you can't invest on S&P 500 ETF on a monthly basic. The alternative is to invest in a Unit Trust fund that invest directly into S&P 500 index. The unit trust name is Infinity U.S. 500 Stock Index Fund. You can invest this on POEMS platform from $100 per month and there are no sales charges, switching fee and platform form. However, do noted that you have to first invest $1,000 into this fund as that is the minimum investment amount required before you can commence your monthly investment. Hope that help.

Investments

Robo-Advisors

ETF

Bonds

Elijah Lee
Elijah Lee
Top Contributor

Top Contributor (Jun)

Level 7. Grand Master
Updated on 17 Jun 2019
If you are investing on a personal basis, any capital gains are not taxable. You need not report such gains in your tax returns.
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