Recently at last Nov ,FSM(FundSuperMart) has step up their game to offer regular saving plan for various local and international ETF.I thought it would be interesting to write a guide regarding this regular saving plan,so here we are!
For other Fsm related post
What is a regular saving plan (rsp)?
- Regular saving plan(rsp) offers investor an affordable and convenient way of investment by committing a fixed amount of money on a monthly basis for a shares,allowing us to enjoy the benefit of dollar cost averaging
What is dollar cost averaging?
- When the share price is higher,we would buy fewer shares with a fixed dollar amount
- When the share price is lower,we would buy more shares with the same amount
- This mean we automatically buy less at market high and buy more at market lows
- Overtime,the price we pay for our portfolio of shares would be average out
Benefits of Rsp
1.Affordability
- Rsp allow us to buy into selected shares by investing an affordable and regular amount per month,from as little as $50
2.Dollar cost averaging
- Rsp remove the need to time the market and trying to figure out when is the lowest point to buy
3.Flexibility
- Rsp generally has a lower cost of transaction with no lock up period
Currently,the fsm regular saving plan(rsp) offer over 40 Etf,hence in this post we are going to discuss the various rsp that fsm has to offer
Here are the various categories that the RSP has to offer,you csn view it at the link
1.Core equity
2.Fixed categories
3.Regional equity
4.Single country equity
5.Commodity
6.Tactical plays
As there are over 40 ETF that FSM has to offer, i am only going to talk only 4 ETF that i think you should consider to invest in.
Do refer to this post and this post on why we should invest in ETF
Vanguard total world stock index fund ETF shares(Nyse: VT)
What is it?
VT tracks the performance of FTSE global all cap index that measures the return on investment of the different companies stocks in developed and emerging economies worldwide(including 7707 large ,mid and small cap companies stock in 49 countries worldwide)
What does VT contain?
source:Fundsupermart
From its holding, you can see there is a wide variety of stock from different sector and different countries(Microsoft: Technology, Tencent holding ltd: Communication services, The Home Depot Inc: Consumer Cynical, Proctor and Gamble co: Consumer defensive)
VT ETF performance history
source:Fundsupermart
As you can see it is certainly not very impressive, if you consider that over 10 years, it has only increase about 0.9223 per year(9.223/10). Covid has certainly reduce the performance of this ETF. Also, this ETF cover emerging economy, hence its ETF performance may not be as good as those ETF that are more US concentrated. Nevertheless, i feel it is one of the best ETF in the world and has a low expense ratio at 0.08% .After all the purpose of the ETF is to be diversified and achieve an average return overtime
Vanguard S&P500 ETF (MYSE:VOO)
What is it?
VOO track the performance of the S&P 500 index, a widely recognized benchmark of the US stock market performance that is dominated by the stock of the large cap companies in US. Basically it is a replication of the S&P 500 index
What does VOO contain?
As you can see ,VOO is almost similar to VT ,but it does not contain companies outside of America(e.g TenCent's),it include companies that are more familiar to an average America( e.g. Bank of America: Financial Services, Exxon Mobil corp:Energy,Adobe:Technology).Nevertheless, i feel it is one of the best ETF in the world and has a low expense ratio at 0.03%
VOO fund performance history
Fidelity MSCI Information Technology Index ETF (NYSE:FTEC)
What is it?
FTEC tracks the performance of the MSCI USA IMI information technology index which track the performance of information technology sector in the US equity market and at least 80% of the FTEC is similar to MSCI USA IMI information technology index
What does FTEC contain?
As the index track the technology sector in the US, it includes company such as Paypal,Apple,Nividia as well as AMD
FTEC fund performance history
Its fund performance date back to 5 year, which come out to around 4.554% annually, do note that tech is one the sector that recover quickly during covid.Nevertheless, i feel it is one of the best ETF in the world and has a low expense ratio at 0.08%
O'shares Global Internet Giant ETF(NYSE:OGIG)
What is it?
OGIG tracks the performance of the O's shares Global internet Giant index.This index mainly tracks stocks exhibiting quality and growth characteristics in the technology sector.
What does OGIG contain?
As you can see, OGIG track tech related company from both US and China such as Alibaba, Amazon, Bilibili, Pinduoduo and Netflix
OGIG fund performance history
Its ETF performance date back to 1 years and is up by 57.531%,which is pretty impressive if you consider covid, if you would exposure to both US and China tech,this is an good ETF to consider
There are of course many more great ETF on the list but i generally lean more toward technology ETF as the company name in the ETF are more well known and that i mainly use the produce in some way or another(Microsoft: window laptop) compare to consumer cyclical like (e.g home depot).Nevertheless, i feel it is one of the best ETF in the world and has a low expense ratio at 0.48%,slightly lesser than ARK invest ETF.
Hope you enjoy this post!
