If you’re looking to invest your money in Singapore, two of the most popular robo-advisors that come to mind are Endowus and StashAway. Both platforms offer a range of investment products and portfolios to suit different investment objectives. However, there are some key differences between the two that you need to consider before making a decision.
Endowus is the first digital advisor for CPF, SRS, and cash savings in Singapore. It offers a range of investment products, including unit trusts and exchange-traded funds (ETFs), with a focus on passive investing. On the other hand, StashAway invests in ETFs, but also offers access to actively managed funds. Both platforms have different fee structures, which we will explore in more detail later in this article.
If you’re a first-time investor or simply looking for a more convenient way to invest your money, robo-advisors like Endowus and StashAway are worth considering. In this article, we will provide a detailed comparison of the two platforms, covering investment products, fees, performance, and user experience. By the end of this article, you should have a better understanding of which platform is best suited to your investment needs.
Key Takeaways
- Endowus and StashAway are two popular robo-advisors in Singapore, offering a range of investment products and portfolios.
- Endowus focuses on passive investing, while StashAway offers access to actively managed funds.
- Both platforms have different fee structures, which you need to consider before making a decision.
Overview of Endowus and StashAway
Company Backgrounds
Endowus and StashAway are two of the most popular robo-advisors in Singapore. Endowus was founded in 2017 by a team of experienced finance professionals. The company aims to democratize access to institutional-quality investment products for retail investors. StashAway was founded in 2016 by a team of finance and technology experts. The company aims to provide personalized, goal-based investment solutions to its clients.
Investment Philosophy
Endowus and StashAway have different investment philosophies. Endowus invests in actively managed funds or unit trusts, while StashAway invests in ETFs. Endowus aims to generate alpha by selecting the best funds or unit trusts, while StashAway aims to provide broad market exposure through ETFs. Both companies use technology to optimize their investment strategies.
Services Offered
Endowus and StashAway offer similar services, but with some differences. Endowus offers investment solutions for CPF, SRS, and cash savings, while StashAway offers investment solutions for individuals and institutions. Endowus has a minimum account value of $10,000, while StashAway has no minimum investment. Endowus charges 0.6% on everything up to $200,000, while StashAway charges 0.8% for the first $25,000.
In summary, Endowus and StashAway are two of the most popular robo-advisors in Singapore. They have different investment philosophies and offer similar services with some differences in fees and minimum investment requirements. Both companies use technology to optimize their investment strategies and aim to provide personalized investment solutions to their clients.
Investment Products and Portfolios
When it comes to investment products and portfolios, both Endowus and StashAway offer a range of options to suit different investment goals and risk profiles.
Diversified Portfolios
Endowus offers a range of diversified portfolios that include equities, bonds, and REITs. These portfolios are designed to provide investors with exposure to a range of asset classes and sectors. Endowus also offers ESG and thematic portfolios for investors who want to invest in companies that align with their values or in specific themes, such as technology or healthcare.
StashAway also offers diversified portfolios that include equities, bonds, and REITs. The portfolios are designed to provide exposure to different asset classes and sectors, with a focus on global diversification. StashAway also offers a goals-based investing portfolio, which is designed to help investors achieve specific financial goals, such as retirement or saving for a down payment on a house.
Specialised Investment Options
Endowus offers a cash management portfolio called Endowus Cash Smart, which provides investors with a higher yield than traditional savings accounts. The portfolio invests in Singapore government bonds and is designed to provide investors with a low-risk, stable return on their investment.
StashAway offers a simple investment option called StashAway Simple, which invests in a single ETF that tracks the global stock market. This option is designed for investors who want a simple, low-cost investment option that provides exposure to the global stock market.
Both Endowus and StashAway offer income portfolios that are designed to provide investors with a regular income stream. Endowus’ income portfolio invests in a mix of government bonds and corporate bonds, while StashAway’s income portfolio invests in a mix of bonds and REITs.
Overall, both Endowus and StashAway offer a range of investment products and portfolios that cater to different investment goals and risk profiles. Whether you’re looking for a diversified portfolio or a specialised investment option, both platforms have something to offer. With Endowus Cash Smart and StashAway Simple, investors also have access to unique investment options that are designed to provide stable returns and low costs.
Fees and Costs Comparison
When it comes to robo-advisory platforms, fees and costs are a crucial factor to consider. Here, we compare the fees and costs of Endowus and StashAway to help you make an informed decision.
Management Fees
Endowus charges a management fee of 0.6% on all investments up to $200,000, which is lower than StashAway’s management fee of 0.8%. However, StashAway offers a tiered fee structure, which means that the management fee decreases as your investment amount increases.
Transaction Fees
Both Endowus and StashAway do not charge any transaction fees. This means that you can buy and sell assets without incurring any additional costs.
Fund Costs
Endowus invests in professionally managed funds or unit trusts, which may have higher underlying fees compared to StashAway’s ETFs. However, Endowus offers access to institutional share classes, which are typically lower in cost compared to retail share classes.
StashAway invests in ETFs, which are generally more cost-efficient than mutual funds. However, it’s important to note that ETFs may still have underlying fees that can impact your returns.
Overall, it’s important to consider the management fees, transaction fees, and fund costs when choosing between Endowus and StashAway. While Endowus may have lower management fees, StashAway’s tiered fee structure and cost-efficient ETFs may make it a more attractive option for investors with larger investment amounts.
Performance and Returns
When it comes to investing, returns and performance are crucial factors to consider. Endowus and StashAway are both robo-advisors in Singapore that offer investment portfolios with different risk levels and projected returns. In this section, we will compare the historical returns of both platforms and discuss their risk management strategies.
Historical Returns
Endowus offers a range of portfolios with different risk levels, from conservative to aggressive. Their portfolios are made up of professionally managed funds or unit trusts. According to their website, their Income portfolios have an estimated total return between 3.5% and 10.0%, while their Satellite portfolios gave an average annualised 10-year return of 17.62%.
On the other hand, StashAway’s portfolios are made up of ETFs and are designed to match your risk tolerance. Their projected returns range from 2.4% to 8.0%, depending on the portfolio’s risk index. According to their website, their higher-risk portfolio has a risk index of 36.0% and a projected return of 8.0%.
Risk Management
Both Endowus and StashAway have risk management strategies in place to help investors mitigate risk. Endowus uses a combination of active and passive management, as well as diversification across asset classes and geographical regions. They also offer a Cash Smart portfolio, which invests in cash and short-term instruments to provide liquidity and capital preservation.
StashAway, on the other hand, uses ERAA® (Economic Regime-based Asset Allocation) to adjust their portfolios based on economic conditions. They also use diversification across asset classes and geographical regions to manage risk. Additionally, they offer a StashAway Risk Index that helps investors determine their risk tolerance and select a portfolio that matches their risk profile.
In conclusion, when it comes to performance and returns, both Endowus and StashAway offer competitive options with different risk levels and projected returns. It is important to consider your risk tolerance and investment goals when selecting a portfolio.
User Experience and Accessibility
When it comes to user experience and accessibility, both Endowus and StashAway offer a user-friendly platform that is easy to navigate. However, there are some differences in their platform interface, mobile application, and customer support.
Platform Interface
Endowus has a clean and simple interface, making it easy for users to find what they need. The platform offers a dashboard that displays your portfolio performance, asset allocation, and investment returns. You can also view your account balance, transactions, and holdings. The platform is intuitive and straightforward, making it simple to invest.
StashAway also has a user-friendly platform that is easy to navigate. The platform offers a dashboard that displays your portfolio performance, asset allocation, and investment returns. You can also view your account balance, transactions, and holdings. However, some users have reported that the platform can be overwhelming at times, with too much information displayed on the screen.
Mobile Application
Both Endowus and StashAway offer mobile applications that allow you to manage your investments on the go. The mobile applications offer similar features to the web platforms, including the ability to view your portfolio, make deposits, and withdraw funds. However, some users have reported that the StashAway mobile application can be slow and buggy at times.
Customer Support
Endowus offers excellent customer support, with a team of dedicated advisors available to answer your questions and provide guidance. You can contact the team via email or phone, and they typically respond within 24 hours. The platform also offers a comprehensive FAQ section that covers most common questions.
StashAway also offers customer support via email and phone. However, some users have reported that the response times can be slow, with some queries taking several days to be resolved. The platform also offers a comprehensive FAQ section that covers most common questions.
Overall, both Endowus and StashAway offer a user-friendly platform that is simple to invest in. However, Endowus offers better customer support, while StashAway’s mobile application can be slow at times.
Frequently Asked Questions
What are the key differences in investment strategies between Endowus and StashAway?
Endowus invests in professionally managed funds or unit trusts, while StashAway invests in hands-off ETFs. This means that the underlying fees could be very different depending on your actual portfolio. Endowus charges 0.6% on everything up to $200,000, which is lower than StashAway for the most part.
How do user experiences compare when using Endowus versus StashAway platforms?
Both Endowus and StashAway offer user-friendly platforms that are easy to navigate. However, Endowus offers a more personalized experience with a dedicated advisor for each investor. StashAway, on the other hand, has a more hands-off approach, allowing investors to manage their portfolios independently.
What are the performance track records for Endowus and StashAway in the Singapore market?
Endowus has a strong track record of consistently outperforming the market, with a return rate of around 5.5% to 6.5% per annum. StashAway also has a good track record, with returns ranging from 4.5% to 5.5% per annum.
Can you highlight the fee structures of Endowus and StashAway and how they impact returns?
Endowus charges a flat fee of 0.6% on everything up to $200,000, while StashAway charges a tiered fee structure ranging from 0.2% to 0.8% per annum depending on the investment amount. The fees charged by both platforms impact returns, but the difference in fees is not significant enough to make a huge impact on overall returns.
What are the unique selling points of Endowus compared to StashAway for Singaporean investors?
Endowus offers a more personalized experience with a dedicated advisor for each investor. They also invest in professionally managed funds or unit trusts, which could potentially lead to higher returns. StashAway, on the other hand, has a more hands-off approach, making it a good option for investors who want to manage their portfolios independently.
How do the security measures of Endowus and StashAway ensure the safety of my investments?
Both Endowus and StashAway use bank-level security measures to ensure the safety of your investments. They also use two-factor authentication to prevent unauthorized access to your account. Additionally, your investments are held in custody by a third-party custodian, ensuring that your assets are safe even in the unlikely event of bankruptcy or insolvency.