Stashaway discussion thread

[Kojo0403]

Sianz stashaway overweight gold but not doing well

The primary issue I have with StashAway global portfolio is that it's investment methodology is too complex.. and to some extent aggressive.
Feels like I am buying into a active fund/ unit trust instead of trying to keep things simple, especially with those sector-based ETFs and weighting in GLD.
If they were to add GLD, I hope that it follows the convention of not more than 5-10% allocation.

At least the other robo that I have tried - DBS Digiportfolio (Asia) is more straight-forward and broad-based. China, India, AXJ REIT and SGD Bonds, that's it.

 

[twosix]

The primary issue I have with StashAway global portfolio is that it's investment methodology is too complex.. and to some extent aggressive.
Feels like I am buying into a active fund/ unit trust instead of trying to keep things simple, especially with those sector-based ETFs and weighting in GLD.
If they were to add GLD, I hope that it follows the convention of not more than 5-10% allocation.

At least the other robo that I have tried - DBS Digiportfolio (Asia) is more straight-forward and broad-based. China, India, AXJ REIT and SGD Bonds, that's it.

They did state the risks profile upfront.

 

[haikallp]

Can anyone share with me the assets for Risk Index 18%? I just upped my risk, hoping for higher returns. TIA.

 

[tutonic]

Can anyone share with me the assets for Risk Index 18%? I just upped my risk, hoping for higher returns. TIA.

You can view the composition in Stashaway itself when you're selecting the risk profiles..

18% EMB
20% BNDX
35% Equity (should be about 14-15% of XLV and XLY, and the remaining 5-7% IJR)
8% KWEB
20% GLD

 

[Okenba]

The primary issue I have with StashAway global portfolio is that it's investment methodology is too complex.. and to some extent aggressive.
Feels like I am buying into a active fund/ unit trust instead of trying to keep things simple, especially with those sector-based ETFs and weighting in GLD.
If they were to add GLD, I hope that it follows the convention of not more than 5-10% allocation.

At least the other robo that I have tried - DBS Digiportfolio (Asia) is more straight-forward and broad-based. China, India, AXJ REIT and SGD Bonds, that's it.

I would not really consider Stashaway passive investing. Just that they use index ETFs.

However, they are active not only in risk management (some would say market timing), but also to the extent of switching around their allocations according to what their team thinks is on the rise.

Buying stashaway is not so much about trusting the market but more about trusting their investment team.

 

[gold_eagle36]

Their strategy is to combine modern portfolio theory with assessment of economic conditions.

And if economic condition is uncertain. Will fall back to all weather. Which is happening now and bringing it a lot of risk management asset type like gold even on their high risk portfolio.

 

[Kojo0403]

I would not really consider Stashaway passive investing. Just that they use index ETFs.

However, they are active not only in risk management (some would say market timing), but also to the extent of switching around their allocations according to what their team thinks is on the rise.

Buying stashaway is not so much about trusting the market but more about trusting their investment team.

Yea, that’s a good point!
With the trust part being kind of unknown or uncertain to some,
would you recommend one to just allocate part of their retirement portfolio (5-10%?) into Stashaway? or use it as a core part of their retirement portfolio?

In fact, isn’t it similar to investing into a unit trust including those balanced funds with bonds and equities component.. (though Stashaway has a lower cost)? Anyway all fund managers would claim that they have the “secret sauce” to generate a long term positive return..

 

[Okenba]

Yea, that’s a good point!
With the trust part being kind of unknown or uncertain to some,
would you recommend one to just allocate part of their retirement portfolio (5-10%?) into Stashaway? or use it as a core part of their retirement portfolio?

In fact, isn’t it similar to investing into a unit trust including those balanced funds with bonds and equities component.. (though Stashaway has a lower cost)? Anyway all fund managers would claim that they have the “secret sauce” to generate a long term positive return..

Yup. Agree that it is in a way similar to UTs.

I think SA has been performing well, and so it does have many who have invested in it. For myself, as I saw them changing allocations, I decided that I wanted something that is more about buying the whole market.

So I have decided to just buy a global index through IBKR.

I think it's a personal decision what people do, and considering they seem to be delivering well so far, I can certainly understand why people would want to invest with them.

 

[Okenba]

Perhaps another thing to add is that SA isn't necessarily that cheap either.

Past couple of years have seen further regulations kick in to lower costs for UTs.

SA is one of the more expensive Robos out there starting at 0.8%

There are costs to FX from SGD to USD.
As well as costs in the area of Dividend Withholding Tax and dangers of estate taxes.

Buyers of SA should, on top of the fees, also consider ETF expense ratios, fx costs, and dividend tax costs for a more complete picture of how much they pay for SA.

 

[Kojo0403]

Perhaps another thing to add is that SA isn't necessarily that cheap either.

Past couple of years have seen further regulations kick in to lower costs for UTs.

SA is one of the more expensive Robos out there starting at 0.8%

There are costs to FX from SGD to USD.
As well as costs in the area of Dividend Withholding Tax and dangers of estate taxes.

Buyers of SA should, on top of the fees, also consider ETF expense ratios, fx costs, and dividend tax costs for a more complete picture of how much they pay for SA.

yea i did notice that.. for etfs with >0.20%, after adding the management fee of 0.80%, it can easily cross 1.0%..

 

[direbmem]

Not sure if I'm seeing right, but Stashaway Etfs doesn't seem to include those that include tech stocks? Seems like don't have popular etfs like qqq and snp included?

 

[Okenba]

Not sure if I'm seeing right, but Stashaway Etfs doesn't seem to include those that include tech stocks? Seems like don't have popular etfs like qqq and snp included?

https://www.stashaway.sg/r/stashaways-etf-selection

snp is first on the list.
Instead of using nasdaq etfs (qqq), it looks like they use snp as the core and then work with sector etfs as satellite.

So further down you use XLK as a tech sector etf.

 

[direbmem]

Strange I don't see snp in my 36% portfolio allocation...only IJR, XLV and XLY under US equity sector..does Stashaway invest in all Etfs under the selection at all times?

 

[Okenba]

Strange I don't see snp in my 36% portfolio allocation...only IJR, XLV and XLY under US equity sector..does Stashaway invest in all Etfs under the selection at all times?

Probably not. As mentioned up thread, StashAway isn't really a passive robo and they change their portfolios as and when their investing team thinks is appropriate.

Perhaps they have decided that the snp is overbought and due for a downturn?

 

[direbmem]

Hmm..perhaps. Is anyone else here on the 36% portfolio? Can share what US etfs u see in your portfolio currently?

 

[twosix]

Should be the same right?

 

[direbmem]

Got reply from Stashaway. 36% portfolio US ETFs comprises only the 3 IJR, XLV and XLY. So no exposure to the usual tech stocks like Tesla or Apple. Unless u turned on re-optimisation (I did not), there MIGHT be a chance they add in XLK or IVV. 30% is the only portfolio with default allocation to IVV.

 

[twosix]

Endowus has snp etf.

 

[luvalist]

I have 36% portfolio. It’s what the rest said - IJR, Xlv, xly

Hmm..perhaps. Is anyone else here on the 36% portfolio? Can share what US etfs u see in your portfolio currently?

 

[direbmem]

Haha Is it a bit weird the riskiest portfolio doesn't have some exposure to the high profile volatile stocks of the tech sector?