Asked on 10 Jun 2020
I'm intending to diversify my portfolio and invest in S-REIts and wanted to have some thoughts/advice. What do you think about investing in the Lion-Phillip S-REIT ETF with FSMone vs. investing in the i-Edge S-REIT with Syfe REIT+? I do not wish to invest in both.
(1) what are some considerations (e.g. fees, etc.) that i should be aware of before deciding on either?
(2) I'm intending to invest over the long term (i.e. passive investing)
Hi anon, that's a great question! Firstly, Syfe REIT+ is not an ETF portfolio. When you invest in the REIT+ portfolio, you get to own actual units of the REITs included in the i-Edge S-REIT index.
Unlike FSMone, Syfe has no minimum investment amount and no commission fees.
If you invest $100 every month into REIT+, the fee you pay for the entire year is $4.23. Our fee of 0.65% is a per annum fee, but fees are charged on your asset under management each month.
If you invest $100 every month through FSMone, your commission alone will be $12. That's not including the ETF management fees of 0.5% on the Lion-Phillip S-REIT ETF.
To boost your returns, REIT+ 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.
FSMone uses a transaction-based approach to charging fees. On the other hand, Syfe uses a percentage-based model on your portfolio size.
The cost of investing via FSMone or Syfe will depend on the following factors:
Frequency of investing - the more often you invest, the more expensive via FSMone
Quantum of investment - the more $ you invest, the more expensive via Syfe
There are 2 ways to approach investing in the Lion-Philip S-REIT ETF via FSMone:
Via Regular Savings Plan(0.08% or min S$1 per month) which will buy into the ETF on the 8th of every month
Directly buying the ETF via Live Trading(S$8.80 per trade) whenever you want to.
As for investing via Syfe, it follows a tiered percentage-based struture on AUM:
<20k - 0.65%
20k and <100k - 0.5%
100k - 0.4%
Show More Products