Investing Through AutoWealth
What will I be investing in?
AutoWealth Malaysia Starter – A globally diversified portfolio that holds equity and bond ETFs. Depending on your financial goals and risk comfort, you can choose between 5 different asset allocations.
What You’ll Be Investing In:
With AutoWealth Malaysia Starter, your portfolio will consist of carefully selected exchange-traded funds (ETFs) that cover both global equities and Malaysia bonds. This strategic combination offers balanced exposure to different markets and asset classes.
Equity ETFs: Invest in shares of top companies across various global markets, providing growth potential through capital appreciation. You gain exposure to developed markets like the US and Europe, as well as emerging economies, diversifying your investments.
Bond ETFs: Holdings in government and corporate bonds provide stability and regular income, acting as a buffer during market volatility. We also include Malaysian bond ETFs, allowing you to gain exposure to local fixed-income assets for further diversification and risk management.
How does AutoWealth Malaysia select the Exchange-Traded Funds (ETFs)?
We have a rigorous process to screen over 13,000 ETFs listed globally and select the best ETFs based on factors including diversification effect, direct holdings of underlying Bonds or Stocks, reputation of the ETF provider, ETF fund size, liquidity and expense ratio amongst other factors.
Why AutoWealth Malaysia does not invest in Commodities?
AutoWealth Malaysia does not invest in Commodities due to the following:
- Unlike stocks which pay dividends and government bonds which pay coupons, commodities do not generate any yield at all;
- As commodities do not generate any yield/cashflow, they are hence difficult to value. Therefore, commodities tend to have higher volatility (risk);
- Commodities trade in contango most of the time. Contango refers to a situation where the commodity’s futures prices are higher than the current spot price and investors lose value over time even though the commodity spot price remains unchanged over time. This downside is a common phenomenon due to the commodity’s storage/warehousing cost. For example, oil is stored in bunkers while precious metals like gold/silver are stored in bank vaults, thereby attracting storage/warehousing cost.
On balance, the downside outweighs the upside of a commodity’s diversification effect.
AutoWealth Malaysia 