Peso Vs. Dollar Investment In The S&P 500! Everything You Need to Consider...
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- Опубліковано 14 жов 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...
Here we're exploring the PROS and CONS of investing in S&P 500 UITFs either in Peso or Dollar denominations.
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Hi Mark, this is very informative. Thank you!
Is the investment in S&P via banks taxable? I'm planning to start in the next month or so, but I can't find any info how the gains will be taxed.
Displayed figures are already net of taxes and taken cared of by the bank 😊
@@ZiggingbyMarkSigg thank you! :)
did you also consider the cost of changing currency which is aroung 0.8 to 1.8% per dollar. for 50 cents to 1 pesos per dollar of charges?
Hi Mark, I have this US Equity Feeder Fund Peso Class in BPI. What I've noticed is that sometimes it outperforms my VOO ETF on USD in other app by significant percentage. It supposed to be almost identical right? Since they are both tracking the S&P 500. I think the reason why the BPI sometimes outperforms is that the fund also considers the PHP-USD exchange rate. The lower the PHP, the higher the return vice-versa in BPI U.S Equity feeder fund even if its also in peso class. Forex is included in the NAVPU..
BPI isn't tracking the VOO and tracking the SPDR S&P 500 ETF. There may also be a delay in terms of what BPI displays (not sure of their cut-off times). Your other platform would be displaying real-time trading figures of your VOO.
Hi Mark, why don't you try IBKR and buy Irish domiciled Vanguard S&P 500 (VUAA) with 0.07 expense ratio, reduced tax of 15% and no estate tax? Is it really better to just buy it on our local banks? I think it really depends on what currency you have and how to fund it. Maybe you can do a direct comparison between the two. Thank you for your videos. 😊
Peace of mind with banks. Wouldn't want to put in so much and all of sudden get a notice that this or that platform gets banned by the SEC.
@@ZiggingbyMarkSigg Thank you Mark. 😊
Hello Mark
New subscriber here.Im about to invest a decent amount and do not understand what you mean by peace of mind.I open IBKR, gotrade and Shari Shari. Is the last one good enough to invest let say 5k or 10k? The IKBR is a little bit tricky to fund, have to go thru wise and wise only accept credit and debit card, a bit expensive.Then Gotrade goes with 3% but is cheaper to fund 50k even with the 3% than IKBR. I did not try yet Shari Shari. Your thoughts please.
The SEC issued a statement against one of the similar platforms, Etoro. I have a video on this. And even before this, I only have put in minimal amounts. I covered Shari-Shari and Gotrade. A lot of these online platforms are new so they haven't stood the test of time unlike banks. But that's just my own opinion
is it possible to transfer my USD from wise to my dollar account in eastwest? I am also planning to start my S&P 500 journey via EW
I haven't used Wise but in concept it should work. Hope it all works out!
Hello Sir Mark Paano po mlalaman yun PRICE NG NAVPU?? Thanks
59% over seven years ba gain that is a cagr of 6.66% or raw 8.4%, not bad.
Sir mark, can you review po GoTyme bank USD time deposit?
Sorry I missed this 😅 I'll see, I haven't done any savings account videos just yet. Not sure what to include further other than the interest rate and holding period 🤔
disappointing for BDO is the clearing time of 14 working days when you deposit usd, it will be hard to estimate and hit the desired navpu. They make use of your USD first and benefited from it .Furthermore the Investment doesn't show in the BDO online apps unlike Bpi. So I think I wont add anymore to my BDO and comeback to my bpi uitf. If incase BDO continues in moving backwards in their apps features I'll be closing it. ,1.5% trust fee for bpi is acceptable if you feel the convenience and being sustained by your gains.
Thanks for sharing your experience with BDO I didn't realize it took that long to clear deposits! EastWest's online banking is also subpar but I'm hoping they catch up eventually.
Sobrang laki na nung 1.5% (3 times more than BDO, 2 times more than other banks) na trust fee bro . I would rather suffer the 14 days clearing kaysa makita ang 65k per year na kaltas as trust fee sa investments ko.
@@bryanmaligsa6625 then go with bdo
Hi @ZiggingbyMarkSigg
Wala ba talagang dividends yung s&p 500 pag local? Bakt sabi nila meron daw sa US?
pinapasok na sa NAVPU ng feeder fund