Home News In print this week

How to build a no-fuss portfolio with ETFs

Trinity Chua
Trinity Chua8/14/2017 08:00 AM GMT+08  • 6 min read
How to build a no-fuss portfolio with ETFs
(Aug 14): Low-cost exchange-traded funds are a quick and easy way to diversify one’s investments. But is it possible to build a portfolio exclusively with these instruments? Phillip Securities Research analyst Pei Sai Teng thinks so. Pei and his team ha
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(Aug 14): Low-cost exchange-traded funds are a quick and easy way to diversify one’s investments. But is it possible to build a portfolio exclusively with these instruments? Phillip Securities Research analyst Pei Sai Teng thinks so. Pei and his team have curated several model ETF portfolios with a mix of bonds, stocks and gold. The percentage allocated to each asset class varies depending on the investor’s risk appetite. The conservative version has an allocation of as much as 60% to short-term, sovereign and corporate bonds. The aggressive version has a higher allocation to stocks. There is also a balanced version of the portfolio. Returns over the last five years have ranged from 21% to 42%.

“ETFs lower the barrier to entry while allowing [investors] to grow their money and diversify their risks,” Pei says, adding that the portfolios may be appealing to millennials who think investing in individual stocks requires having to do a lot of homework and exposes them to too much risk.

Simple, low-maintenance ETF portfolios such as Pei’s are likely to catch on as dozens of robo-advisers compete for the investment dollars of young professionals or novice investors. “After [witnessing] the 2008 financial crisis, the younger generation values stability,” says Freddy Lim, co-founder of robo-advisory firm StashAway and a former managing director at Nomura International.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.