Endowus made a pretty big change recently and you can read about it in detail here - Endowus launches low-cost Cash and SRS portfolios with systematic & passive index funds from Vanguard, Dimensional, PIMCO. I will briefly capture the important points below.
This is not exactly a re-optimization of its portfolio but a complete change to a newer and better (more diversified) one at no additional or lower fee.
If this is your first time coming across the efficient frontier chart/graph, you can read more about it here. In theory/reality, we want the highest return for a specific level of risk. Standard deviation measures the risk/uncertainty, hence the lower the better and you can read in detail here. In this case, Endowus's portfolios are shifting up (higher returns) and shifting left (lower annualized standard deviation) which means for the better! This is what the fees are for, portfolio optimization.
Is it possible to shift higher and more left using other funds? Possible but so will the fees. Increasing the fees is a hard pill to swallow for any investors as returns are not guaranteed but the fees are. Hence, I believe this is probably the best portfolio they can come up with at the current moment and such a complete change of portfolio shouldn't happen again in the near future.
Anyway, to trigger the rebalance, you will have to review and accept it under your notification (click on the bell icon). I missed it a couple of times when I logged in using my laptop and only saw it when I was using my mobile.
Risk Profile
Goal type: General wealth accumulation
Risk tolerance: Maximise returns (loss tolerance -60%)
Account Summary
Capital: $5,950.00
Current: $5,797.36 (-10.13%)
There are quite a few differences as compared to StashAway. Firstly, all the cash has been invested while StashAway keeps 1% of the portfolio in cash. Secondly, the fees are not deducted on a monthly basis. The Access Fee charged by Endowus will be deducted at the end of each quarter as stated in their FAQ.
Asset Allocation
This was in the midst of the rebalance where Endowus had to first sell all the Dimensional World Equity Fund, hence there was no asset/investment in my portfolio. Having said that, I believe that this might be a bug since the sell transaction only happened on 1st June.
Not much of an issue since the total number of units is correct. Anyway, you can see the rest of the transactions in advance.
Transactions
Bought 35.5690 shares of Dimensional World Equity Fund @ $19.68!
That's all! Overall, I think the statement is pretty straightforward and easy to read.
If you are interested in Endowus, do use our referral link for our readers! You will get S$10,000 managed free for 6 months ($20 equivalent) and we will get $20 too!
You might be interested in previous months update too:
- Endowus CPF/SRS Review
- Endowus - January 2020 - $3,692.02
- Endowus - February 2020 - $3,704.57
- Endowus - March 2020 - $4,153.50
- Endowus - April 2020 - $4,849.67
- Endowus - May 2020 - $5,797.36
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 --> Unfortunately, you can't see it on mobile.)
This is not exactly a re-optimization of its portfolio but a complete change to a newer and better (more diversified) one at no additional or lower fee.
If this is your first time coming across the efficient frontier chart/graph, you can read more about it here. In theory/reality, we want the highest return for a specific level of risk. Standard deviation measures the risk/uncertainty, hence the lower the better and you can read in detail here. In this case, Endowus's portfolios are shifting up (higher returns) and shifting left (lower annualized standard deviation) which means for the better! This is what the fees are for, portfolio optimization.
Is it possible to shift higher and more left using other funds? Possible but so will the fees. Increasing the fees is a hard pill to swallow for any investors as returns are not guaranteed but the fees are. Hence, I believe this is probably the best portfolio they can come up with at the current moment and such a complete change of portfolio shouldn't happen again in the near future.
Anyway, to trigger the rebalance, you will have to review and accept it under your notification (click on the bell icon). I missed it a couple of times when I logged in using my laptop and only saw it when I was using my mobile.
Risk Profile
Goal type: General wealth accumulation
Risk tolerance: Maximise returns (loss tolerance -60%)
Monthly investment using SRS: $700
Account Summary
Current: $5,797.36 (-10.13%)
There are quite a few differences as compared to StashAway. Firstly, all the cash has been invested while StashAway keeps 1% of the portfolio in cash. Secondly, the fees are not deducted on a monthly basis. The Access Fee charged by Endowus will be deducted at the end of each quarter as stated in their FAQ.
Asset Allocation
This was in the midst of the rebalance where Endowus had to first sell all the Dimensional World Equity Fund, hence there was no asset/investment in my portfolio. Having said that, I believe that this might be a bug since the sell transaction only happened on 1st June.
Not much of an issue since the total number of units is correct. Anyway, you can see the rest of the transactions in advance.
Transactions
Bought 35.5690 shares of Dimensional World Equity Fund @ $19.68!
That's all! Overall, I think the statement is pretty straightforward and easy to read.
If you are interested in Endowus, do use our referral link for our readers! You will get S$10,000 managed free for 6 months ($20 equivalent) and we will get $20 too!
You might be interested in previous months update too:
- Endowus CPF/SRS Review
- Endowus - January 2020 - $3,692.02
- Endowus - February 2020 - $3,704.57
- Endowus - March 2020 - $4,153.50
- Endowus - April 2020 - $4,849.67
- Endowus - May 2020 - $5,797.36
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 --> Unfortunately, you can't see it on mobile.)
hi KPO,
ReplyDeletewhy is the SD on the chart 11.5%, but your profile's SD is 16.x%?
just wondering the discrepancy
Very observant! I just logged in to check and I am looking at an expected annualised return of 6.04% with a standard deviation of 9.09% which are very different from the presented data too. My guess is both the expected return and SD are going to be slightly different for everyone because the datasets used to generate them are different.
DeleteI started invested Dec last year (sort of at a high) as compared to now, hence the previous portfolio had a much higher SD? Over a longer period of time, it should be closer to what is presented.