S&P 500 In The Philippines: Which Bank UITF Is Best After 10 Years? SHOCKING RESULTS...
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- เผยแพร่เมื่อ 22 มี.ค. 2024
- I've invested in the S&P 500 for many years now via BPI, through their US Equity Feeder Fund. I thought I'd keep my invested money here during my lifetime! But with recent charges to the newly named BPI Wealth, BPI has raised their trust fees across the board, not only with BPI Wealth UITF's but also with their BPI-ALFM Mutual Funds. In particular, they doubled the trust fees of the US Equity Feeder Fund from 0.75% per annum to 1.5%! From an industry standpoint, this is the highest. Research shows that BDO, RCBC, Metrobank, and Eastwest have lower per annum trust fees offering similar UITF's tracking the S&P 500. The main difference though would be in terms of the minimum investment amount. BPI has a leg up on their competitors here because of their very low minimums, which especially fits my strategy of dollar cost averaging. But do lower minimum investments really justify higher trust fees? I've crunched the numbers and checked on the daily value of the S&P 500 in the last 10 years. With this data, I formulated different scenarios for each bank, theoretically investing in each one once I met their investment minimums. After which, I was able to deduct trust fees annually based on each bank's charges. From this experiment, I've come up with results that are most fairly comparable between banks --- and these results shocked me! I've found great alternatives to BPI's S&P 500 UITF...
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If you move from BPI to one of the mentioned banks, will it not be more expensive on the unit price now as you have already purchased or positioned yourself in the past 10 years?
Of course, same goes with any new investment you make. You exit your position, you cash in your gains or losses, whichever may apply to you.
Thanks for this video Mark. Since lilipat ka na maybe sa East West. Paano ba mag-avail sa service nila. Last time kase, pumunta akong ng BPI Branch pero di nman alam ng mga staff nila ang tinatanong ko.
This is a common scenario, and yes it gets frustrating. I feel like banks aren't incentivized to push their investment products. Anyway, try to ask to speak to a Relationship Manager or get connected to the Trust Department. They should be able to better help you out.
Hi Sir, thanks for this informative video!
I have an existing BPI Dollar UITF and rates are high now. Do you suggest to do monthly investing in my existing BPI UITF? Or it’s better to open another similar dollar denominated UITF in EW Bank? Or MB or RCBC?
I’ll really appreciate your advise. Thanks in advance!
I suggest making your future investments either via EW, RCBC, or Metro. You can maintain your existing BPI UITF until you'd like to redeem it. If it's too much hassle to start a new UITF with another bank and you'd like to do monthly investing via BPI, that's completely understandable too
Thank you Sir! Will visit any of the EW, RCBC or MBC branch then.
All the BEST in spreading financial literacy to our fellow Filipinos! Kudos to you!
Hi sir, thank you for this informative video! Can I ask lang po if you could compare with IBKR and investing via S&P ETF nalang like VOO or SPY?
Reddit/boggleheads also suggest naman instead of US S&P ETF, go for Irish-domiciled ETF like VWRA via IBKR for less tax. Compared with our local bank UITFs, they dont compute tax na po ano?
ETFs would always have less charges as these are funds these UITFs are based on. While I do have some, I'm not too comfortable putting too much of my money in these relatively new online platforms. I only know these Irish-domiciled ETFs in concept so I cannot personally recommend. If you personally think it's worth the trouble, why not.
I just keep my S&P500 holdings in BPI just to have a better relationship with them. I think its still worth it even with the higher management fee.
hi Sir. Thank you for your videos, I just actually started my US Stocks investments recently after watching your videos. Now, I'd like to know which bank has the fastest way to invest on these UITF - US Dominated funds? Like RCBC or BDO, they have 15 and 30 business days holding period before you can actually put it on you UITF accounts and start investing. Or is there any way to avoid these hold-up period aside from paying the fee from bank to bank y using your USD dominated accounts? Thank you and more power!
Holding period would actually refer to the number of days that you have to keep your money in the fund each time invest. Crediting of the amount into the investment fund is just a few days 😀
@@ZiggingbyMarkSigg sir, like on RCBC, when you add any dollar amount on your usd bank account, you have to wait for at least 30 business days before you can actually move it. Same goes with BDO, they have 15 business days holding period if I remember it correctly, now is there a quicker way to solve this dilemma, i would like to avoid this holding period-days or weeks even months and go ahead in investing it to my uitf accounts. Thank you!
You should invest in ETFs directly then
@@ZiggingbyMarkSigg what platform can you recommend sir? I’m currently having rcbc’s us equity feeder fund bdw
Does BPI's peso-denominated UITF have the same result considering Peso to Dollar exchange fees?
No peso class a decade ago. And if yes, the peso depreciated by 25% from then. So no, peso class would perform worse.
@@ZiggingbyMarkSigg Thank you so much for the info! Super helpful comment. Subscribed po 😁
Sir, mas ok ba ang BPI equity Index using dollar account vs peso account? SInce weaker peso will also weaken your position?
Yes the added perk of the USD account is the currency appreciation. There is the hassle though of having to change your money each time. But it could be worthwhile.
@@ZiggingbyMarkSigg Thanks for replying Sir. Pero in terms of NAVPU value appreciation halos same lng yung Peso Class and Dollar Class po dba? hassle ksi to convert each time mag deposit plus need 500USD as maintaining sa dollar account na sitting lng doon. Convenient na now sa BPi since mobile app will allow you to invest sa UITFs. Looking foward to your thoughts regarding peso class vs dollar class of US Index Fdr fund!
@@ZiggingbyMarkSigg More videos to come Sir. More powers sa inyo. Also, if you could make a video regarding sa mga fixed income securities offerings like RTB, Bonds, Digital banks Time deposit etc. sana magawan nyo po :)
In principle, yes same performance. I haven't closely looked into it so I will look to do so.
sir mark, meron daw po ang US na 25% witholding tax sa dividends sa lahat maginvest sa s&p 500 po. totoo po ba? nakatry ka na withdraw sa feeder funds mo po sir? may US tax po ba? thank you po
That's if you invest in an ETF in the global markets directly. These UITFs are feeder funds offered by local banks no different from any of their other products. For my redemption of UITF units throughout the years, there hasn't been any additional fees or taxes other than what the banks already build into their trust fees.
@@ZiggingbyMarkSigg thank you sir
Hi Sir.Mark! I like your thoughts of not investing too much money in online platforms and mainly investing through banks. Totally agree.
I’m just curious if you are investing US bond ETF such as TLT?
I'm invested in ETFs but haven't invested in bond ETFs. Any good? Bond ETFs would be more for long term so haven't gotten into them yet with the new online platforms
@@ZiggingbyMarkSigg yes that’s right. in my opinion, bond ETFs are stable but no dreams.
But wow! I didn’t expect to get a reply from you. Thank you so much for your kindness🙏
So wouldnt it be better to just go with platforms like etouro or other to invest in the sandp500?
I personally feel more comfortable having more of money invested through a bank even with the fees. If you're comfortable with the online platforms, then why not.
@@ZiggingbyMarkSigg in your pov right now what bank would be best?
Other than what I mention here?
@@ZiggingbyMarkSigg based on your experience, still a 20 year old who is interested in this stuff so i just want to know you pov with experience which bank would you recommend to friends who wants to invest in the long term
I mentioned I only invested via BPI but then they changed the fees. So I'm just about to find out too 😊
Good move. Nakakatawa sa isang feeder fund na passively manage tapos ganyan kalaki fees.
Yes, 1.5% for something that's copy pasted 😅 that's why I'm moving future investments charging 1/3 of that, both passively managed naman hehe
Hi sir! Question po. Why didn't you compare the UITFs investing the same amount (ex. $300 per month)? I think this would be a fairer comparison among the banks
BDO has a $500 minimum, first off. If I had computed for the same frequency with the same amount, then the lowest trust fees would win and no need for this video.
I just recently pull-out all my BPI UITF due to their increase in Trust Fee. This confirm I did the right way.
Thanks
The new fees are ridiculous. Although to clarify, I'm looking to go with the other banks for future investments.
Does the uitf of s and p have dividends?
Unfortunately, none for these UITFs
@@ZiggingbyMarkSigg thanks for the kind reply. How do I subscribe if I have BDO or Metrobank. Do i need to go to the branch? or we can open an account online? and What is the name of the product? US Equity feeder for S&P500?
Metrobank US Equity Feeder Fund. BDO US Equity Feeder Fund. I am in the process of finding out how to go about investing 😅
yes masyadong tumaasnng management fee ng BPI even pse index 😢
Yes all BPI Wealth UITFs and BPI-ALFM Mutual Funds tinaasan nila 😅 no choice tayo but to agree to their new fees or move
@@ZiggingbyMarkSigg meron pa din ako sa BPI Bond Index and Infrastructure Index, US index pinagiisipan ko kung aalisin ko or liliitan ko ng allocation. then naglagay ako sa COL mutual funds para sa Equity fund and index since mas lower ng konti ang fees at tax free ang mutual funds
@@ZiggingbyMarkSigg Nga pla Sir I have Pera account din thru seed box what do you think ok po ba sya in the ling term 😊
Who's the winner?
Hi @ZiggingbyMarkSigg So where will you transfer your funds from BPI? Thanks
Perfect timing, just published my video now on which I've chosen and my experience so far
Show us how much you gain after 10 years of investing.
Will do
Don't believe to your team