facebookWhat is the platform cost for Endowus versus StashAway? - Seedly

Anonymous

23 Sep 2020

Robo-Advisors

What is the platform cost for Endowus versus StashAway?

During this volatile period, the time-weighted returns are almost similar/negligible.

I am troubled by the article regarding Stashaway higher COSTS (~1.9% vs <1%) being indirectly featured in an Endowus article: https://endowus.com/insights/4-points-to-consid...

How do we derive the dividend withholding tax 0.6% as mentioned in that article? The dividend withholding tax only applies to dividend stocks/bonds, not the growth stocks, correct?

AMA Endowus

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Endowus

23 Sep 2020

HI Anon,

Dividend withhold tax applies to underlying investments that gives out dividend/income. In the case of investing through US ETFs, because the ETFs are obliged to pay out distributions due to the US tax authorities , and as a result be taxed at the fund level (between the US domiciled ETF to Singapore entity) at 30%.

Assuming a 100% equity portfolio, with a 2% distribution, for a 30% DWT regime the dividend withholding tax will be at 0.6%. This will vary across different risk portfolios and geographical allocation.

"At Endowus, the platform Access Fee is inclusive of GST, and range from 0.05% to 0.60%." Witholding tax for US-domiciled funds is 30% on dividends (regardless of growth or dividend stocks).

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