Trying Out All Robo-Portfolios! Here Are The Results After 3 Months

Robo-advisors are a pretty compelling product. Besides offering retail investors access to well-curated funds and investments, they can also be very beginner-friendly, and offer cost-saving benefits as well.

We know with so many different Robo-advisors in the market, investors can get overwhelmed. The last time we counted, there were over 10 Robo-advisors available to consumers in Singapore!

Here at Wreazzy, we are big believers in Robo-advisors, especially for the time-starved, and those who want to keep it simple. Not everyone wants to spend their time checking out stocks, or figuring out investment products.

Of course, when it comes to investing, the most important thing is still results. And whether you are comfortable with the volatility of the portfolio.

Uncovering Results

With that in mind, we took the liberty of depositing funds into the flagship portfolios of the top three Robo-advisors.

Being somewhat obsessive, we decided to take things a step further by picking a few similar setups in terms of equity to bond ratios.

Nothing like a bit of variety to spice things up.

In actuality, we wanted readers to understand how equity-to-bond ratios affect the return and volatility of a portfolio. Something which you have to take into consideration when you are picking a suitable investment for yourself.

What We Chose

For Endowus, we invested into the Core Flagship Portfolios. We took on four different risk profiles, defined by 20%, 30%, 40%, and 60% loss-tolerance. Your Loss-Tolerance is determined by you as you set up your portfolio.

Here are how their asset allocations look like:

The Red highlight represents the Equity portion, while the Green represents the Fixed income portion.

In curating the portfolios, we generally went for a varied Bond-to-Equity ratio, while also striving for a 100% Equity portfolio.

We notice that for Endowus, with so many mutual funds in it’s portfolio, it does take a more active management style.

Similarly for Stashaway;

This is from Stashaway’s General Investing Portfolio. After selecting the risk exposure that you desire, Stashaway will allocate a suitable portfolio to you.

They are somewhat unique in that while they use ETFs for diversification, we can see a distinct tilt to sectors known to benefit from a inflationary environment.

Lastly, we have Syfe;

Syfe’s Core Portfolios invests solely in ETFs to achieve diversification. They are focused primarily on the US markets.

I think Syfe’s offerings are the most diversified of all, with a strong passive-investing stance due to it’s overwhelming use of ETFs.

An Overhead View

At the end of 3 months, this graph shows how $100 in each portfolio performed;

Generally speaking, Gold prices did pretty well, boosting returns for both Stashaway’s and Syfe’s portfolios.

Stashaway had the added benefit of holding a sizable portion of Energy stocks which were an unexpected winner of the Ukraine-Russia conflict.

Across the board, we can see that most equities bore the brunt of the market downturn, with equity-biased portfolios feeling the pinch. Fixed Income portfolios did a bit better, but still went into the negative.

With global markets in turmoil since the start of 2022, i think this poor showing is not unexpected. Nearly all sectors were negatively affected by recent events ranging from Inflation, Rising Interest Rates, and the current Conflict.

Just Different Exposures

This snapshot is probably not the best conclusion as to which Robo-advisor is the best. Markets can be extremely efficient, rapidly boosting “hot” sectors which translate to returns for portfolios who have that exposure.

A more important question which we should be asking is whether we are comfortable with the risk-profile of the portfolio. And if it’s investment approach appeals to us.

If you’re a new investor, don’t let the slightly negative performance scare you away. This volatility is considered pretty mild, and also has it’s highs and lows.

We will be following up with this Robo-advisor comparison in the future, so if you found this article interesting, do consider subscribing for more updates.

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