SYFE REIT+ Fees Comparison Comparison with Lion Phillips EFT, let’s find out which one is the better in terms of the fees. The portfolio may be a little bit different but I’m just curious whether Reits SYFE REIT+ fees can defeat EFT REITS, the closest would be Lion-Phillips S-REITS since both focus on the Singapore REITs.
Lion-Phillip S-REIT tracks the Morningstar® Singapore REIT Yield Focus Index. This is the first REIT ETF in the world with Singapore REITs accounting for 100% of its constituents.
SYFE REITS+ portfolio tracks the iEdge S-REIT 20 Index. The iEdge S-REIT 20 Index is the most liquid representation of the SREIT Market in Singapore.
You can choose between 100% REITS or Risk management (REITS + Singapore Bond).
The 100% REITs portfolio will be rebalanced with the index twice a year (April and October).
The REITs with the Risk Management portfolio will be rebalanced as necessary based on market circumstances to minimize fluctuations in your portfolio value.
I’m not going to do deep analysis over here, please exercise your due diligence before committing yourself. I recommend to read the analysis from Finance
As always said past performance is no guarantee of future results. But It’s important to look at the historic data. comparing dividend is not that straight forward as well and not really apple to apple.
Here is the comparison for the Year 2019
|SYFE REIT+ 100%||27.1%||5.1%|
|SYFE REITS+ with Risk Mgmt||25.6%||4.6%|
SYFE REIT+ Fees Comparison VS Lion Phillips EFT
It’s a little bit tricky to make the comparison since SYFE REITS+ is not a fund and the EFT has a different fee structure which is the management fees and operating cost fees which then impact the total net value (NAV).
When looking at the EFT fees most of the time is better to look at the management expense ratio. The operating fees and management fees make up the Management Expense Ratio.
For the sake of simplicity I just deducted the fee every month directly from the investment. This calculation also doesn’t take the consideration of dividend and the gain / loss.
Let’s say that we invested 2700 each in both Syfe REIT+ and Lion-Phillip S-REIT. Take a note that both has fee per annual that is calculated daily.
Syfe win over here because there’s no trading fee while other broker such as Tiger Broker which has the cheapest rate at $2.88 min per trade. Tiger Broker currently has promotion till 31st December 2020 that there is no minimum per trade and it trading fee is 0.08% per trade. click here if you want to know more.
Let’s say that we invested 500 as deposit followed by each $200 for 11 months.
Syfe once again win with DCA, if you look closely the Syfe has a higher fee at the end at 0.65% ($10.38) while Lion Philip EFT is at 0.6% ($9.58) but the big amount of fees comes from the Platform trading fee.
Who has the cheapest fees?
We have a winner here! Syfe is much more cost-effective both in a lump sum and Dollar-cost averaging. Of course, this simulation is very simple in the real world there’s a lot of factors to cater in but I really hope that this makes sense in terms of fees.
You’ll even get a cheaper fees from Syfe once you reached 20K (0.5% Fee) and 100K (0.4% fee)
The fee structure here is cheaper compared to the DIY approach or EFT because Syfe doesn’t have any trading fee.
One thing that I don’t like about Syfe and hopefully they improve this is that there’s a cash portion that will stay as cash from your portfolio.
17.3% cash portion is very huge. I’ll update this post if I’ve more information about this why the number is so huge.
From Syfe FAQ
When you fund your portfolio, we set aside a small cash component. The relevant fees will be automatically deducted from this cash component each month.
There’s a Referral Promotion currently for SYFE, just enter the following referral code: SRPTVTRKB
$10 bonus for the first deposit above $500
$50 bonus for the first deposit above $10K
$100 bonus for the first deposit above $20K