Asked on 17 Jun 2020
Instantly diversify between stocks and bonds (and gold for some).
Don't need to choose your ETF, just your risk level.
Cheaper to use roboadvisors if you're looking to invest in multiple ETFs.
If you're new to investing and you're not sure how to select an ETF, roboadvisors would be a good place to start. I recommend Stashaway (if you have less than 3k) or Autowealth (if you have more than 3k) because the options are simple, straightforward and less intimidating. Syfe has a global portfolio you can also consider.
Hope this helps!
4 more comments
23 Jun 2020
23 Jun 2020
I'm a beginner as well and I chose investing with a robo-advisor!
Using a robo-advisor is very easy and fuss-free! You can deposit any amount you want, anytime. Furthermore, it is a form of passive investing where you just leave your funds there and let it do it's magic. It's also pretty diversified.
However, you cannot choose the specific companies you want to invest in as they are chosen by the robo-advisor.
Overall, it's still a pretty good platform to start your investment journey!
19 Jun 2020
+1 robo advisor.
Can start with minimal $1, can set up auto invest every month, can choose to auto reinvest dividends.
TBH, why not do both? Robos don't exactly offer you the exact ETF you are looking for, and more often than not, they have their own constructed asset allocation which may or may not be what you're looking for. However, you can see robo as the professional segment of your investments. And then DIY and buy ETFs of your choice, but make sure you don't overlap if not you are being redundant. For myself, I have my own DIY portfolio as well as a Robo segment. Hope it helps!
I believe that both strategies are the same in the sense that they use the same financial product which is ETF. I would recommend investing with a robo-advisor because for beginners, they may not know what ETFs to buy. Should I buy STI ETF or S&P500 ETF or World Stock ETF or which sector ETF to get the most gains etc. With robo-advisor, they will properly allocate those ETFs that has potential because there's always one professional behind this robo-advisor running those algorithms.
So if you know what ETF to buy, I would recommend doing DIY ETF RSP through FSMOne's ETF RSP or IBKR (for ireland domiciled etf).
However, please bear in mind that you might incur more costs if you want to buy a lot of ETFs compared to robo advisor where they charge you by AUMs. Therefore, to me, I would choose a World Stock ETF to invest in so that almost all aspects of the stocks are covered in one ETF and thus saving cost.
DIY investing into large & cheap & well diversified (globally) passive indexing ETFs with a cheap online broker.
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