DrWealth has been keeping their cards close to their chest with little details on what to expect from their newest offering – an automated investing service. Automated investment service is certainly not a new concept of idea and has plenty of interest, primarily in the United States with established players such as Betterment and Wealthfront managing funds in excess of US$1 billion.
What features is DrWealth touting?
- Build an automated, intelligent and diversified portfolio with low fees
- Worldwide diversification via ETFs
- Seamless trade execution by trusted partners
- Customised investment plan
- Automatic portfolio rebalancing
- Take your portfolio with you everywhere
Sounds like a dream come true! Almost a year and a half ago, I first noticed the availability of such services in the US and had hoped for its arrival to our sunny island. Fast-forward to today and we’re on the brink of the launch of such a service.
Think of how we could construct Bogleheads portfolio with an entirely passive approach. Perhaps we would be able to easily select the 3 funds we need and the desired allocation. Monthly investment amount will be automatically deducted from our bank account, and the portfolio will always be maintained in our desired allocation. Set, and forget. How nice.
One key area I’d be looking closely at is how low the actual fees are going to be. Remember that Betterment and Wealthfront are the largest of all companies doing automated investment services, and they can offer incredibly low fees because of the enormous size of funds that they are managing. Betterment charges an annual fee of 0.15%/0.25%/0.35% depending on how much fund you invest with them, whereas Wealthfront charges a flat 0.25%.
Is automated investing right for you? DrWealth has a booth (B11) at Invest Fair 2015 where you can learn how you can build an automated, intelligent and diversified portfolio with low fees. Also, from the Invest Fair 2015 programme list, they have a 30-minutes talk too.
Invest Fair 2015 // 16 August 2015 – Seminar Room 2 // 3:00 pm
Index Investing the Fuss-Free and Automatic Way with DrWealth
Calvin Yeo, Managing Director, DrWealth