Endowus Investment: Using their Flagship Plan

[camholicx]

Anyone uses their Flagship plan to invest? It stated that most of the client invested in their flagship plan.

After I invested in their balanced risk plan 40% Equity, 60% Fixed income, I noticed that they invested in several equity fund and fixed income. Some of the main one are:
1. PIMCO GIS Global Bond fund
2. Dimensiional Global Core Equity
3. Amundi Index Global

Ques: do you recommend this flagship plan or should I listen to some guru to invest on SNP500 solely?

I am using SRS hence it is like a long term investment with at least 10yrs.

 

[JuniorLion]

I don't.

It's a fund of funds. Which is no better than pure S&P with a 30y horizon.

 

[gold_eagle36]

I use 80/20 flagship for srs. It all boils down to greed and asset allocation strategy.

Will you be ok if S&p give flattish returns next 10years ?

Inclusion of global or world funds into the mix might be better in my opinion

Anyone uses their Flagship plan to invest? It stated that most of the client invested in their flagship plan.

After I invested in their balanced risk plan 40% Equity, 60% Fixed income, I noticed that they invested in several equity fund and fixed income. Some of the main one are:
1. PIMCO GIS Global Bond fund
2. Dimensiional Global Core Equity
3. Amundi Index Global

Ques: do you recommend this flagship plan or should I listen to some guru to invest on SNP500 solely?

I am using SRS hence it is like a long term investment with at least 10yrs.

 

[camholicx]

80/20 means higher risk correct?

 

[blurpandasg2014]

I don't.

It's a fund of funds. Which is no better than pure S&P with a 30y horizon.

Safer to do 50% SP500 and 50% MSCI

Although I find endowus 80/20 and 100 equity portfolio returns are ok. I do also have some monies invested

 

[s0crates]

Anyone uses their Flagship plan to invest? It stated that most of the client invested in their flagship plan.

After I invested in their balanced risk plan 40% Equity, 60% Fixed income, I noticed that they invested in several equity fund and fixed income. Some of the main one are:
1. PIMCO GIS Global Bond fund
2. Dimensiional Global Core Equity
3. Amundi Index Global

Ques: do you recommend this flagship plan or should I listen to some guru to invest on SNP500 solely?

I am using SRS hence it is like a long term investment with at least 10yrs.

I have invested in their flagship portfolio, more recently switched to buying Amundi msci funds.

What I realise is that the way endowus invests, especially for the equity portfolio portion, is not that different from a MSCI ACWI, with a slight overweight to EM.

Its hard to claim any short term outperformance to skill relative to msci ACWI.

If you invest in the flagship portfolio you are assuming that they will ensure that they will always keep an eye on the fund managers and make sure you get the best fund products available. It also means you are comfortable to buy ACWI with slight EM overweigh

If you pick your own fund you either have to make a call to overweight a sector (sp500, MSCI world) or make your own ACWI equivalent.

I find arguing that just investing in sp500 will beat ACWI is an uneducated view on investing. Choosing the right benchmark to compare is very important for performance monitoring. The benchmark that you should compare endowus against us MSCI ACWI given their investment approach, not sp500. Trying to compare any investment/roboadvisor against sp500 is just not fair without taking into consideration what kind of exposure they want to give you.

If you give this kinda benchmark all investment managers in the world should compare themselves against sp500 and ten of thousands of investment specialists jobs will be unnecessary lol.

 

[Mephist0pheLes]

Anyone uses their Flagship plan to invest? It stated that most of the client invested in their flagship plan.

After I invested in their balanced risk plan 40% Equity, 60% Fixed income, I noticed that they invested in several equity fund and fixed income. Some of the main one are:
1. PIMCO GIS Global Bond fund
2. Dimensiional Global Core Equity
3. Amundi Index Global

Ques: do you recommend this flagship plan or should I listen to some guru to invest on SNP500 solely?

I am using SRS hence it is like a long term investment with at least 10yrs.

I believe you selected a 40/60 portfolio because you assessed that's the risk/volatility level you were comfortable with. To switch to a 100% S&P500 fund means taking on substantially more risk, r u able to stomach that?

Other people do it, regardless of who, does not mean you should follow. They may be perfectly fine seeing their $500k S&P500 portfolio drop to $300k without batting an eyelid, while other people might go crazy over the same drop.

You should assess that whether you are okay to take on high risk when considering increasing your equity allocation.

Regardless, I suggest you not use their flagship portfolio due to its higher platform fee. Consider buying 40% Amundi Global and 60% PIMCO GIS Global Bond as single fund instead to save some fees if you want to stick to Endowus. Alternative, you could explore the Amundi bond and equity funds from POEMS, which should be even cheaper.

 

[JuniorLion]

If you give this kinda benchmark all investment managers in the world should compare themselves against sp500 and ten of thousands of investment specialists jobs will be unnecessary lol.

Truth. And truth hurts.

 

[s0crates]

Truth. And truth hurts.

Lol that's not how the world works buddy.

 

[JuniorLion]

Lol that's not how the world works buddy.

No matter how bad the fund is, there will be people who buy it. That's why fund managers have a job.

That's how the world works.

 

[JuniorLion]

There are junk bond funds, and ultra-short etfs. These are known to be bad. People still buy them. Just because it's bad doesn't mean people won't buy.

Granted; don't compare whatever you buy to S&P. But it won't change the fact that to outperform it is tough (I did *not* write jmpossible).

That is all.