Syfe launches flexible portfolios with Syfe Select

Syfe announced the launch of Syfe Select today – a customisable and flexible portfolio for investors to build a diversified portfolio of various ETFs of their choice.

Syfe Select comes in two forms:

  • Syfe Select Themes
  • Syfe Select Custom

Syfe Select Themes

Syfe Select Themes is a way to invest in a thematic portfolio.

For example, if you’re an investor looking to capitalise on long-term structural trends such as disruptive technologies, sustainability, changing demographics, and China’s evolving economy, you can invest via Syfe Select Themes.

Syfe offers 5 different themes to invest in:

  • ESG & Clean Energy: Stocks focused on ESG, clean energy, and water sustainability
  • Disruptive TechnologyCompanies focused on innovations like robotics, artificial intelligence and cloud computing
  • Healthcare Innovation: Investments focused on healthcare advancements such as genomics, biotechnology, and pharmaceuticals
  • China GrowthStocks aligned to companies in China’s growing tech and consumer sectors
  • Global IncomeInvestment-grade and high-yield corporate and government bonds that offer high yields

Usually, investors might want to complement their core portfolio holdings with a thematic portfolio if they wish to bet on the potential outperformance of a theme versus the market.

Let’s say you really like to bet on the Disruptive Technology theme, which invests in companies focused on innovative themes like robotics, AI and cloud computing.

Selecting the theme allows you to see a breakdown of fund constituents in the theme.

For example, the Disruptive Technology theme consists of multiple ETFs, including:

  • ESPO (15.54%)
  • BOTZ (14.91%)
  • CIBR (13.66%)
  • KWEB (13.63%)
  • CLOU (12.50%)
  • IPO (10.44%)
  • ARKF (10.34%)
  • ARKW (8.98%)

What if you think 15.54% allocation towards ESPO is too excessive? You can customize the portfolio with Syfe Select Custom.

Syfe Select Custom

With Select Custom, you can customize the weights of individual ETFs within the portfolio to build your ideal portfolio.

Syfe Select Custom also allows you to create your own customizable portfolios from their universe of ETFs, sorted by trending, recommended, top performers etc.

Let’s see what in the recommended category. So, we have a list of recommended ETFs, and they are labelled so I can filter by asset class, risk, geography and so on.

There’s a sort button that is hidden under filters which isn’t very intuitive, but it allows me to sort the list by 3Y returns and risk.

Click into the ETF shows me some statistics and information about the fund. For example, if I click into ARKK, I can read what the fund is about and see its historical return.

If I like the fund and I want it in my portfolio, I can click the Add tab on the top right – and Syfe adds it to my customized portfolio of up to 8 funds – not bad.

Syfe Select value proposition

Personally, the launch of Syfe Select comes at an opportune time with flexible and customisable ETFs in a roboadvisor that automatically rebalances twice yearly and automatically reinvests dividends at a low 0.35% fee annually.

Since Endowus only has DIY portfolios with mutual funds, and StashAway has yet to launch flexible portfolios, Syfe has cleverly positioned this product launch to meet the needs of particular market segments:

  • New retail investors who want to invest in global ETFs without incurring huge brokerage charges
  • Customers who cannot invest on their own due to regulatory or compliance reasons but can invest in their own basket of ETFs via Syfe

For those who have a core portfolio holding with Syfe or elsewhere (even DIY), Syfe Select might be used as a small satellite allocation towards themes that you are bullish on without co-mingling your funds with the rest of your portfolio.

In fact, Syfe Select might also be a good way to set regular investment or savings plans because they are low cost, have no minimums to start, and offer free transactions, rebalancing and dividend reinvesting – ensuring that you keep more of your returns.

Overall thoughts

I’ve given Syfe a try in the past, and I found their REIT+ product most interesting.

The rest of their products like Equity100, Cash+ and Global ARI didn’t really appeal to me.

But Syfe Select is interesting – it allows you to build your own ETF portfolios with a small cost of management that’s relatively insignificant if you have a small portfolio.

The possibility to create a recurring investment plan from my bank account that automatically deposits into a Syfe Select portfolio of my own that I can set and forget and not worry about whether it is balanced, or whether the dividends are sitting idle, makes it very appealing if I want to have a small portfolio of market bets on cloud technology and FinTech companies.

I’ll be giving them another go with a $10,000 bet and forget portfolio on innovation themes – let’s see how that goes.

Sign up with Syfe and use the code BTSPIDER for a 6-month fee wavier. T&C apply.

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