New member
Got several DMs on previous thread so I am just going to put out the numbers here. Stashaway benchmarks itself against MSCI World Index. So we pick any ETFs that track the index such as URTH for comparison. Might as well throw SPY into the mix.

  • 5 year annualized return: 7.14%
  • Expense ratio: 0.8%
  • Total return if you put 10k in at 2018:
    Annualized return - Expense ratio = 7.14% - 0.8% = 6.34% n = 5 years
    FV of Stashaway = 10,000 * (1 + 6.34%)[sup]5[/sup]
    = 10,000 * (1.0634)[sup]5[/sup]
    = $13,787.17
  • 5 year annualized return: 8.91%
  • Expense ratio: 0.08%
  • Total return if you put 10k in at 2018:
    Annualized return - Expense ratio = 8.91% - 0.08% = 8.83% n = 5 year FV of URTH = 10,000 * (1 + 8.83%)[sup]5[/sup]
    = 10,000 * (1.0883)[sup]5[/sup]
    = $14,912.68
  • 5 year annualized return: 10.98%
  • Expense ratio: 0.09%
  • Total return if you put 10k in at 2018:
    Annualized return - Expense ratio = 10.98% - 0.09% = 10.89% n = 5 years FV of SPY = 10,000 * (1 + 10.89%)[sup]5[/sup]
    = 10,000 * (1.1089)[sup]5[/sup]
    = $17,805.23
Hope this paints a clearer pictures. Expense ratios, much like interest rates, can compound over time and erode your returns. Now this is a napkin calculation as I am ignoring taxes and transaction fee etc but the point still stands. In fact, this is looking even worse for robo funds since I am not comparing them against more sophisticated strategy that robo fund claims to make (rebalancing, diversification, hedging). I am merely highlighting that even a passive approach like buying SPY and doing nothing for 5 years will still handily beat robo funds considerably.

Lastly, this is not an investment advice. Do your own research.
@auskid Most go for IBKR. Others go for etoro or MIDF invest. Which broker to choose depends on your views on the amount of fees per trade and broker background.
@zionpeter StashAway also tends to buy many types of ETFs to diversify, with up to 10 types of ETFs depending on the preset chosen.

That is a LOT of expense ratios combined, and they don't even beat SPY by a wide margin. Some of the ETFs chosen can go as high as 0.7% in expense ratios.
@weeone54 To be fair, you only pay robo fund for their ratio, not their holdings ratio. So they can diversify into 100 etf, you still only pay 0.8% as an investor.

If you try to replicate their portfolio as a retail investors at $1/transaction, the costs do add up.

But that’s what this post is meant to show, they don’t have alpha. Their diversification is still a beta heavy strategy. You can just buy spy and still beat their performance.

Edit: I was wrong. Stashaway pass on their etf cost to investors.
@georgiew Whoah I stand corrected. You are right robo fund do pass on their etf costs. At least with wealthfront (US based robo) they charge a fixed dollar fee plus etf cost. With Stashaway it’s a percentage OF FUND INVESTED plus etf cost. 😲
@zionpeter Not including transaction fees is a bit disingenuous. Part of the sales pitch of Stashaway is the fact you can invest any amount you want at any time without a per transaction fee.

Similar threads