Time flies! StashAway sent out a 1-year anniversary email around the end of July. In the email, they shared the performance of the various portfolios (P4, P8, ..., P28) and gave a sneak peek into higher return/risk portfolios which will be introduced in the next few weeks. Rachel Dance from StashAway reached out earlier and provided additional information/charts but I shall not reveal too much until the official announcement is out! To be honest, I am looking forward to that because I do believe at our age we can take on more risk.
In addition, there was a "gift" for everyone too. Free management for 1-6 months depending on the fresh fund you invest with them between 24th July and 25th August 2018. I have modified the html (remove my real name) and hosted it here on Github if you are interested in reading the actual email.
If you have seen our Portfolio - July 2018 update and read New Singapore Budget, New REIT Strategy!, you might be wondering why did we not buy any REIT ETF last month. It was partially due to this StashAway email/gift where we would need at least $2,500 and there is always an opportunity cost. Putting more money into StashAway meant putting less elsewhere, we are still considering though...
1. ACCOUNT SUMMARY (as of the last day of the month)
Based on the statement (31 July 2018), we gain $213.52.
2. PORTFOLIO DETAILS
3. TRANSACTIONS
SGD $990.00 converted to USD $726.40 (USD $726.68 last month)
Exchange Rate: 1.3629 (1.3624 last month)
4. FEE CALCULATIONS
There will be no fee until August 2018 because I recommended some friend. Interestingly, we can see the GST stated as being absorbed by StashAway explicitly in this month statement. Not sure how it works but investors will not complain as long as they are not asked to pay more fees.
The actual fee as stated is based on the monthly-average assets SGD $9,552.93 x 0.8% / 365 days * 31 days = $6.49
StashAway VS STI ETF
Since there is no way to compare the performances among the robo-advisors, I came out with a spreadsheet to track our StashAway portfolio performance (General Investing - Risk Level 28) against that of STI ETF which I will be updating on a monthly basis. For simplicity, I shall assume that one can either invest in Nikko STI ETF using POSB Invest-Saver or invest in Nikko STI ETF/SPDR STI ETF using SCB Priority Online Trading (no minimum commission). These would be the opportunity costs while we continue to invest in StashAway.
Apart from the absolute P&L, we should also look at the Reward-to-Risk Ratio where risk/volatility is taken into account. For more information, do read StashAway Clarifications - Reward-to-Risk Ratio. StashAway has the highest ratio of 1.25 which is significantly higher than the other 2 STI ETFs (< 0.4). Let me quote Freddy Lim (Co-Founder & Chief Investment Officer of StashAway), "for every dollar of risk taken, StashAway P28 is producing 1.25 times the return".
This month commentary: StashAway is the only one making money with an XIRR of 6.49%! One year later, we finally see StashAway's fees > SCB Priority Online Trading commissions. The difference will only continue to get bigger and if such performance can continue, we certainly would not mind paying more fees for a higher return. Like I mentioned previously, those that are already doing DCA on STI ETF, do not be disheartened and stop your investment. Try as much as possible to stick to your plan and in the long run, it will turn out well.
Going forward it will be even more interesting when the commissions/fees incurred by StashAway exceed that of POSB Invest-Saver. This will be a battle between cheaper/lesser fees and asset allocation/diversification...
I believe there is a need to redo/regenerate the volatility used to compute the Reward-to-Risk Ratio. Do take it with a pinch of salt for now. I have been compiling some data in order to do so :)
You might be interested in previous months update too:
StashAway - January 2018
StashAway - February 2018
StashAway - March 2018
StashAway - April 2018
StashAway - May 2018
StashAway - June 2018
Which is the best? Only time will tell :)
This is the link to our spreadsheet - KPO & CZM StashAway Portfolio VS STI ETF which I have also added to Our Portfolio page.
StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right -->)
In addition, there was a "gift" for everyone too. Free management for 1-6 months depending on the fresh fund you invest with them between 24th July and 25th August 2018. I have modified the html (remove my real name) and hosted it here on Github if you are interested in reading the actual email.
If you have seen our Portfolio - July 2018 update and read New Singapore Budget, New REIT Strategy!, you might be wondering why did we not buy any REIT ETF last month. It was partially due to this StashAway email/gift where we would need at least $2,500 and there is always an opportunity cost. Putting more money into StashAway meant putting less elsewhere, we are still considering though...
1. ACCOUNT SUMMARY (as of the last day of the month)
Based on the statement (31 July 2018), we gain $213.52.
As of 10 August 2018, we gain $78.30 from investment returns with a huge currency impact of $255.99. Not good! In our last monthly update, I said that I would have preferred the USD to be weaker because we will be going to the US for our honeymoon. Weaker USD meant that we can convert the same SGD for more USD to invest too.
SGD time-weighted returns: 7.5%
USD time-weighted returns: 1.7%
USD time-weighted returns: 1.7%
2. PORTFOLIO DETAILS
3. TRANSACTIONS
SGD $990.00 converted to USD $726.40 (USD $726.68 last month)
Exchange Rate: 1.3629 (1.3624 last month)
4. FEE CALCULATIONS
There will be no fee until August 2018 because I recommended some friend. Interestingly, we can see the GST stated as being absorbed by StashAway explicitly in this month statement. Not sure how it works but investors will not complain as long as they are not asked to pay more fees.
The actual fee as stated is based on the monthly-average assets SGD $9,552.93 x 0.8% / 365 days * 31 days = $6.49
StashAway VS STI ETF
Since there is no way to compare the performances among the robo-advisors, I came out with a spreadsheet to track our StashAway portfolio performance (General Investing - Risk Level 28) against that of STI ETF which I will be updating on a monthly basis. For simplicity, I shall assume that one can either invest in Nikko STI ETF using POSB Invest-Saver or invest in Nikko STI ETF/SPDR STI ETF using SCB Priority Online Trading (no minimum commission). These would be the opportunity costs while we continue to invest in StashAway.
Apart from the absolute P&L, we should also look at the Reward-to-Risk Ratio where risk/volatility is taken into account. For more information, do read StashAway Clarifications - Reward-to-Risk Ratio. StashAway has the highest ratio of 1.25 which is significantly higher than the other 2 STI ETFs (< 0.4). Let me quote Freddy Lim (Co-Founder & Chief Investment Officer of StashAway), "for every dollar of risk taken, StashAway P28 is producing 1.25 times the return".
This month commentary: StashAway is the only one making money with an XIRR of 6.49%! One year later, we finally see StashAway's fees > SCB Priority Online Trading commissions. The difference will only continue to get bigger and if such performance can continue, we certainly would not mind paying more fees for a higher return. Like I mentioned previously, those that are already doing DCA on STI ETF, do not be disheartened and stop your investment. Try as much as possible to stick to your plan and in the long run, it will turn out well.
Going forward it will be even more interesting when the commissions/fees incurred by StashAway exceed that of POSB Invest-Saver. This will be a battle between cheaper/lesser fees and asset allocation/diversification...
I believe there is a need to redo/regenerate the volatility used to compute the Reward-to-Risk Ratio. Do take it with a pinch of salt for now. I have been compiling some data in order to do so :)
You might be interested in previous months update too:
StashAway - January 2018
StashAway - February 2018
StashAway - March 2018
StashAway - April 2018
StashAway - May 2018
StashAway - June 2018
Which is the best? Only time will tell :)
This is the link to our spreadsheet - KPO & CZM StashAway Portfolio VS STI ETF which I have also added to Our Portfolio page.
StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right -->)
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