DBS Moves To Fight With Robo-Advisors With Newly Launched DBS digiPortfolio
In a bid to compete in Singapore’s up-and-coming robo-advisor scene, DBS launches an ETF based digiPortfolio, making it easy for consumers to invest with portfolios assembled and managed by DBS.
With its’ user-friendly interface, users simply have to log in to DBS’ online banking platform digibank to start investing in their ETF based digital portfolio.
DBS digiPortfolio’a Main Offerings
The Asia and Global Portfolios
DBS offers two ETF portfolios for you to invest in. With a minimum investment of S$1,357.40, you can invest in either of the two listed portfolios.
The Asia Portfolio focuses on Singapore listed ETFs, as well as ETFs focused on Asian countries like India and China.
The Global Portfolio focuses on UK listed ETFs, though investors should have some investment experience in order to qualify to invest in the global portfolio.
A caveat for the above scheme would be the 0.75% per annum management fee that will go to DBS.
Here’s what you will get in the Asia and Global Portfolios respectively:
| Asia Portfolio | Global Portfolio |
|---|---|
| Contains 4 to 7 ETFs | Contains 4 to 6 ETFs |
| Available in different risk levels: - Slow n' Steady: Risk Level 2 - Comfort Cruisin' Risk Level 3 - Fast n' Furious: Risk Level 4 | Available in different risk levels: - Slow n' Steady: Risk Level 2 - Comfort Cruisin' Risk Level 3 - Fast n' Furious: Risk Level 4 |
| Reviewed quarterly and rebalanced to align with market trends. | Reviewed quarterly and rebalanced to align with market trends |
What’s The Asset Allocation Like For DBS digiPortfolio?
DBS digiPortfolio Risk Level 2: Slow n’ Steady
Invests primarily in fixed-income instruments to provide stability to the portfolio while taking advantage of the growth potential of equities.
| Asia Portfolio Holdings | Global Portfolio Holdings |
|---|---|
| Equity: NIKKO Straits Times Index ETF NIKKO StraitsTrading Asia ex Japan REIT ETF | Equity ISHARES MSCI WORLD |
| Fixed Income ABF Singapore Bond Index ETF NIKKO SGD Investment Grade Corporate Bond ETF | Fixed Income ISHARES JPM USD EM BOND USD ISHARES GLOBAL CORP USD-HEDGED ISHARES CORE GLOBAL AGG USD-HEDGED |
DBS digiPortfolio- Risk Level 3: Comfy Cruisin’
Evenly diversifies between equities and fixed-income assets in order to take advantage of market opportunities while maintaining stability in the portfolio.
| Asia Portfolio Holdings | Global Portfolio Holdings |
|---|---|
| Equity NIKKO Straits Times Index ETF NIKKO StraitsTrading Asia ex Japan REIT ETF Xtrackers MSCI China UCITS ETF | Equity ISHARES CORE S&P 500 X MSCI EUROPE USD HSBC MSCI AC FAR EAST EX JAPAN VANGUARD FTSE JAPAN USD |
| Fixed Income ABF Singapore Bond Index ETF NIKKO SGD Investment Grade Corporate Bond ETF | Fixed Income ISHARES JPM USD EM BOND USD ISHARES GLOBAL CORP USD-HEDGED ISHARES CORE GLOBAL AGG USD-HEDGED |
DBS digiPortfolio- Risk Level 4: Fast n’ Furious
Favours equities as opposed to fixed-income instruments. For investors who are prepared to tolerate short-term fluctuations in the value of their portfolio.
Higher allocation to equities may result in higher volatility and potential losses, but is often used to achieve higher potential returns.
| Asia Portfolio Holdings | Global Portfolio Holdings |
|---|---|
| Equity NIKKO Straits Times Index ETF NIKKO StraitsTrading Asia ex Japan REIT ETF Xtrackers MSCI China UCITS ETF | Equity ISHARES CORE S&P 500 X MSCI EUROPE USD HSBC MSCI AC FAR EAST EX JAPAN VANGUARD FTSE JAPAN USD |
| Fixed Income NIKKO SGD Investment Grade Corporate Bond ETF | Fixed Income ISHARES CORE GLOBAL AGG USD-HEDGED |
DBS digiPortfolio: How It Works
To invest, simply log into digibank.
As soon as you’re in, click on the ‘Invest’ tab and select ‘digiPortfolio’
From here you can see:
- Asia and global portfolios at different risk levels, and the underlying ETFs.
- Factsheets of the ETFs used to construct the portfolios
- Historical performance of the portfolios (Example below)
- Details about the team that constructs and manages the portfolios
What’s In The Different Portfolios in DBS:
| Asia Portfolio Holdings | Global Portfolio Holdings |
|---|---|
| Equity NIKKO Straits Times Index ETF NIKKO StraitsTrading Asia ex Japan REIT ETF Xtrackers MSCI China UCITS ETF | Equity ISHARES CORE S&P 500 X MSCI EUROPE USD HSBC MSCI AC FAR EAST EX JAPAN VANGUARD FTSE JAPAN USD |
| Fixed Income NIKKO SGD Investment Grade Corporate Bond ETF | Fixed Income ISHARES CORE GLOBAL AGG USD-HEDGED |
A Step-By-Step Guide On Setting Up Your DBS DigiPortfolio:
| Steps | Description |
|---|---|
| 1. | Select either Asia Portfolio or Global Portfolio |
| 2. | Set the risk level you are comfortable with |
| 3. | Enter your investment amount |
| 4. | Acknowledge the investment notification |
| 5. | Input your order details and click ‘submit’ |
Things to note:
- Before opening your first digiPortfolio, ensure you have sufficient funds (SGD or USD) in your individual Multi-Currency Account (MCA).
- After you have opened a portfolio, it will take a few days for the respective ETFs to be purchased and reflected in your portfolio. You can log into digiBank anytime to check on the status of your portfolio.
“I Want To Invest In DBS DigiPortfolio. What Are The Fees Involved?”
An annual portfolio management fee of 0.75% is charged based on your portfolio value.
If you open your digiPortfolio today and remain invested until 31 Dec 2019, you will receive a full waiver of the annual management fee (0.75% p.a.) for 2019. Currently, this is only available for early access customers.
Thinking Of Buying From DBS digiPortfolio?
If you’re interested in investing with the DBS digiPortfolio, we’ve created a community QnA page for this! Head over to discuss with our community members on our Seedly QnA Platform:
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