Is Syfe’s New Equity100 Portfolio Worth The Hype?

Syfe

Join My Tele Channel Here For Updates!

Syfe (Roboadivsor) just launched its latest portfolio: Equity 100. It is a 100% equities portfolio which follows a Factor-Based + Smart Beta approach to investing.

Syfe Promo Code

For people who are interested to invest into Syfe and wants to open an account, you can use the promo code below as a bonus 🙂

Promo Code: SRPTH8LK3

$10 bonus for the first deposit of $500 (or more)!

$50 bonus for the first deposit of $10,000 (or more)!

$100 bonus for the first deposit to $20,000 (or more)!

Note: Bonus is applicable on the first deposit made only. The bonus will be automatically credited to your portfolio and invested along with your existing investments

So what is Syfe’s Equity100?

Syfe

From what I understand, Syfe’s Equity100 portfolio was launched on the backbone of their existing Global Risk-Managed Portfolio and catered towards investors who are looking for more aggressive growth, with a full equity allocation.

The existing Global Portfolio offered by Syfe follows a “Modern Portfolio Theory-like” approach, focusing on diversified asset allocation across different asset classes. During the March 2020 Market Crash, I remember my 25% Downside Risk Portfolio being rebalanced and maintained like Ray Dalio’s All Weather Portfolio. It pretty much focused on managing risk with assets such as bonds and gold to hedge against the downside risk brought about by equities.

Personally, I am not a big fan of Gold as an investment but I shall not delve into this topic and leave it for another day. Due to the (more) conservative nature of the Global Portfolio, it may not be optimal when it comes to an aggressive investor with a focus on higher risk-adjusted returns for the long term. Stashaway is a direct competitor and they offer a similar allocated portfolio on their higher risk indexes.

I shall not talk about the framework which the Syfe Equity100 is using as it is already covered by Financial Horse in his article here.

Basket of ETFs based on 3 factors

Syfe

Following a factor-based approach, they are focusing on a portfolio which targets an allocation towards”Large Cap, Growth, Low Volatility.”

The illustration above shows the composition of the portfolio. Its biggest holding is Invesco’s QQQ ETF with a whopping 43% allocation. QQQ is an ETF that tracks the NASDAQ-100 Composite Index which has a Tech-Heavy allocation with famous FAANG stocks like Apple and Microsoft included. Consumer Staples giants like Coca-Cola and Pepsi Co. are part of this ETF as well.

The way I see it, this portfolio is following the trend of Large Cap Technology Growth Stocks with many “new normal” + future macro trends like 5G, Artificial Intelligence, Cloud Computing, E Commerce and IoT in mind. Of course there are core components like the S&P 500 UCITS (and others) to maintain a well-balanced growth upside and downside management.

Based on the webinar with Syfe and State Street, selected sector allocations such as Utilities and Consumer Staples form the “Low Volatility” components of the portfolio as these sectors are historically defensive, and will not fluctuate much during a market crash/high volatility period. The satellite portion are really well thought out in my opinion and may help to manage the downside of this portfolio when markets get volatile.

Worth the risk?

Syfe

Based on its backtested data, the Equity100 portfolio is able to manage downside risk during a downturn(2018&2020) and maximise upside potential (2017&2019) during an uptrend, beating the S&P 500 index and MSCI World Index from 2017 to 2020. However, do note that past performance is not an indicator of future returns, and only time will tell if they can keep up with the outperformance.

Outperforming the S&P 500 ETF

Adapted from my StocksCafe Portfolio

The illustration above shows the performance of my Equity100 portfolio pitched against the S&P 500 ETF(SPY). As you can see, it is outperforming the S&P 500 over a 1 year period, and I am extremely happy with it. (This data is purely computed by myself, not Syfe.)

In my opinion, if Syfe can deliver an annualised return of 10% or more in the long run without my own thorough research and constant need to keep up with the market, it is worth every single penny of my capital for my investments.

Who should consider this portfolio?

Investors with a long term horizon (preferably 5 years or more) are recommended. This portfolio is suitable for young investors in their 20s or 30s (heck any age group) who wants to consider an aggressive “Higher risk adjusted returns” portfolio with the primary purpose of Growth. (Capital Appreciation)

Why do I say young investors?

Younger investors have lesser capital, thus it is important to focus on capital appreciation (gains) during the accumulation phase of our investments. By opting for a growth-based portfolio, we can let compound interest snowball our returns. The earlier you start this Snowball Effect, the lesser capital injection (and faster) to hit financial freedom.

Also, with the low interest yield from bank accounts (0.05%-2.5%), are you gonna let inflation (2%-3% yearly) eat away your precious hard earned money/savings? Instead of letting your spare cash sit idle in a bank, let it work harder for you and generate better returns even when you’re asleep.

So how can a young investor in their 20s capitalise on this offering?

For a start, I am doing Dollar-Cost Averaging by putting in $200 per month into the Equity100. Syfe’s Equity100 will be a small portion of my portfolio which I allocate as a professionally managed section other than my DIY portfolio.

Moving forward, if annualised returns were to be higher than my own DIY portfolio, I may start to increase my capital towards this offering. If I can get better returns without my own research and hard work maintaining my portfolio in the long run, I see no reason why I shouldn’t contribute more towards this offering.

TL;DR Syfe Promo Code

For people who are interested to invest into Syfe and wants to open an account, you can use the promo code below as a bonus 🙂

Promo Code: SRPTH8LK3

$10 bonus for the first deposit of $500 (or more)!

$50 bonus for the first deposit of $10,000 (or more)!

$100 bonus for the first deposit to $20,000 (or more)!

Note: Bonus is applicable on the first deposit made only. The bonus will be automatically credited to your portfolio and invested along with your existing investments

Also, if you are interested to sign up StocksCafe, a one stop platform for you to track all your portfolios in one place, click the link here to sign up. You will enjoy an extra month of paid features!(3 months in total) Also, basic features are completely free for all users 🙂 (Yay!)

Once again thank you for reading to the end and I hope it gave you a clearer picture of what this offering is and how it can help you achieve your investment goals. If you have any queries, you can reach out to me via email: investingbeanstock@gmail.com or leave a comment down below. I wish you all the best and stay invested!

Disclaimer:

The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment.

Do note that this is not financial advice. If you are in doubt as to the action you should take, please consult your stock broker or financial advisor.

“Plant your beans early while your soil is fertile”

Investing Beanstock

Author: Investing Beanstock

Writer @Investing Beanstock www.yhlens.com

49 thoughts on “Is Syfe’s New Equity100 Portfolio Worth The Hype?”

  1. hey, when did you started investing in this portfolio? what’s the returns thus far? With a gloomy outlook post covid-19, will the risk increase?

    Liked by 1 person

    1. Hello Jonathan! I started this portfolio the moment it came out. Returns so far are positive too! Regarding your question on risk, I believe there will always be an inherent risk when it comes to investing in equities.
      Many may also argue that an economic bubble is forming and that an iminent correction is on its way.
      To counter this, I am cautiously deploying my capital so I ride the gains but also enough bullets to sustain in case a correction were to come. No matter how uncertain things are right now, this crisis will eventually pass and won’t matter much if you look at it 10 years ahead from now.
      So my advice now to you will be to deploy cautiously and stay invested 🙂 hope it helps!

      Like

  2. Hi!

    I read that there is withholding tax of 30% & Estate duty for Equity100.

    I understand that estate duty only applies upon death and amount more than US 60,000 (correct me if im wrong), so i assume this should not affect anything if nothing happens to us…?
    For withholding tax, it applies to our dividends..?

    Would like to know your take on above.
    Do you think this would affect the projected returns?

    Thanks in advance!

    Liked by 1 person

    1. Hello AN!

      Good question!

      Yes there is dividend withholding tax of 30% on dividends when you invest into US-based ETFs. This applies to all US-based investments and if we were to do it DIY style, we will have to fill up our W8-BEN form when you sign up any of the brokerage platform with the intention to trade US stocks. So Syfe or any other Robo which invest into US-based equities will be subjected to this withholding tax.

      To understand more, US’s stock market characteristic is very different from the one we have in SG. US market generally is not a place you should look at for dividends because their div yield are really low with better dividend players yielding around 3%-4% at best. Compare this to SG based dividend stocks we have stocks yielding 5%-10% range. The plus point for US stock market is that they are an absolute monster when it comes to capital gains. It is easy for US stocks to easily grow 200% 300% or even 500% or even more due to their pathway for growth. Contrast this to Singapore stocks, STI really didn’t go anywhere the past 10 years.

      One way Syfe countered this withholding tax issue is by substituting US based S&P 500 ETF (IVV/VOO/SPY) into Irish-domiciled S&P 500 ETF (CSPX) as they believed that it would help benefit non-US based investors like us to capture better gains in the market. In the long run, this may make a big difference but based on the 10 ETFs within the Equity100, majority of them have very low dividend yield anyway so since our goal here is not for dividend yield but rather, capital gains, hence the withholding tax will not make that big of a difference on the projected returns. (Unless we are talking about US-based dividend players. But again why would we do that? Sg has much better dividend stocks!)

      Hope this helps!

      Like

      1. Hi,

        Thanks for your detailed explanation.
        I’ve used your promo code to join syfe and will be trying out this robo advisor.

        Thanks!

        Liked by 1 person

  3. Hi, should I put a lump sum in equity100 right now (during the pandemic)? Or should I DCA all the way? If lump sum, when do I decide the best timing to do so in upcoming days or weeks? I also have the option to do this in stashaway or other robos.

    Thanks!

    Like

    1. Hello there, I believe the more prudent approach right now would be to DCA slowly (lock in your bonus first) during your first lump sum and subsequently contribute an equal amount per month. At every 10% drop, you can pump in more capital to buy more for less. Of course you can choose to do whatever you like so the above is just a recommendation. There won’t be a best timing to do a lump sum since timing the market is proven to never work based on historical data + human emotions at play.

      Instead of timing the market, being consistent is key. If you stick to DCA strictly you will never lose out much. It always pays to stay invested.

      The robo you choose depends on how much upfront capital you have + returns/time horizon.

      For highest risk adjusted return with a long term horizon: Equity 100 will be the best.

      For moderate-high with some downside risk protection: Stashaway Risk index 36% will be good.

      Hope this helps cheers!

      Like

  4. Mаy I simply juѕt say what a comfort to find a person that genuinely knows what they’re discussing on the
    internet. You certainly know һow to bring an issue to light
    and make it important. More people have to
    chеck thіs out and understand this side of your story. I
    was sսrprised you’re not more popular given that you mоst certainly possess the gift.

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s