馃攳
We Were WRONG About Wahed Invest (2021 Updated Review) - YouTube
Channel: Millennial Finance
[0]
what's up everyone welcome back to
[1]
another video with the millennial
[3]
finance
[3]
in 2020 a lot of us malaysians actually
[7]
started our investing journeys
[9]
and we used the robot advisor routes
[11]
with apps like stashway and wahed invest
[13]
for those of you investing in warhead
[15]
though how is our money
[16]
actually being invested and is it good
[19]
for long-term growth
[21]
let's find out one of our most popular
[24]
videos was a stash rate versus what hit
[26]
was my theo video
[27]
and a lot of you guys seem to have liked
[29]
both statuary and wyatt invest with the
[31]
recent changes to the app though
[33]
we thought that now would be the right
[35]
time for us to go through what
[36]
changes they've made and how they invest
[38]
our money we think this is important to
[40]
know
[41]
because it's never good to just put our
[42]
money somewhere and see that they invest
[44]
in u.s stocks
[45]
but don't know where this is actually
[47]
being put to use
[48]
before going to it i'll touch a bit on
[51]
what changes they've made to the app
[52]
they've completely revamped the look and
[55]
feel of the app with some small
[57]
changes to the features that users can
[59]
do personally
[60]
i really like this new look and it's
[62]
much easier to navigate compared to
[64]
before
[64]
previously i thought that it was maybe a
[67]
bit too simplistic
[68]
that it would make us question that is
[70]
this app really managing our money
[72]
we can also see that they finally added
[74]
the option
[75]
for all of us to have more than one
[77]
portfolio this is a long
[79]
overdue feature which a lot of other
[81]
robo advisors have
[82]
but what it lacked up till now i myself
[86]
wouldn't really be using this feature
[87]
because i'm pretty set in stone that i
[89]
only want to go for the highest risk
[91]
portfolio
[92]
because i'm high risk hairy but for
[94]
those of you who want to maybe work
[96]
towards a goal like saving up for a
[97]
house
[98]
or just planning for retirement then
[100]
maybe it would be good for you
[102]
there's an important note or psa for all
[104]
of you who want to use this feature
[106]
though
[106]
if you open more than one portfolio with
[108]
white invest
[109]
they'll charge you a minimum fee of 2
[112]
ringgit and 50 cents
[113]
every single month this means that if
[115]
you have 1 000 ringgit invested and you
[117]
pay 30 ringgit fees every year
[119]
your annual management fee will be 3
[121]
which is slightly too high for robo
[124]
advisor standards
[125]
because of this i recommend that you
[127]
only open
[128]
more than one portfolio if you've
[129]
invested over 4000 ringgit
[132]
so you can pay the standard management
[133]
fees of around 0.7 to 0.8 percent
[136]
if you don't have this amount of money
[138]
to invest then i recommend that you
[140]
stick to
[140]
just one portfolio and it'll work just
[143]
as well now let's get to the main part
[145]
of this
[145]
video when you invest in wahed where
[148]
does your money actually go
[149]
and what kind of funds do they invest in
[152]
for us to grow our money in the long
[153]
term
[154]
are these fund choices good and at
[156]
minimum
[157]
are they at least matching what the
[159]
market is giving us
[160]
why it has a very simple way to manage
[163]
our money
[163]
in terms of what they invest in unlike
[165]
some other robo advisors who have
[167]
a lot of different etfs that invest in
[170]
based on your risk portfolio
[171]
why it sticks to just five either asset
[174]
classes or
[175]
equities for us to invest in regardless
[178]
of where your risk profile is at
[180]
whether you're on the very aggressive or
[182]
conservative portfolios
[184]
your investment will generally consist
[186]
of u.s stocks malaysian stocks
[188]
sukup gold and cash since sukuk and gold
[191]
as an investment
[192]
is generally very straightforward there
[194]
isn't much research to be done
[196]
for a user and of course for cash i mean
[198]
we don't have to research that do we
[200]
just to touch quickly on the sukkot part
[202]
our money is put into the rhb
[204]
islamic bond fund to be fair their
[207]
performances
[208]
are actually much much better than i
[210]
expected all of you all know that i'm
[212]
not a
[212]
safe investment kind of guy so just
[214]
forgive me for not keeping up with this
[216]
kind of returns but in 2020
[218]
this bond fund returned 5.45
[221]
which is impressive i honestly never
[224]
knew that sukup or bond funds could
[225]
return amounts like this
[227]
because it's actually on par with what
[228]
asb gave us in 2020
[230]
having seen these kind of returns i'm
[233]
not even sure if the malaysian
[234]
investment part of this portfolio
[236]
even bit what suku gave in 2020 let's
[239]
find out
[240]
our investment in the malaysian stocks
[242]
is actually put into the
[244]
msci malaysia islamic dividend etf
[247]
by my etf it's actually one of the very
[250]
few
[250]
etfs that we can invest in that covers
[253]
the malaysian market
[254]
and of course all the stocks that they
[256]
hold are sharia compliant
[258]
taking a look at the performances it's
[260]
again surprising that the fund has
[262]
actually done pretty well
[264]
it has a one-year return of eleven
[266]
percent and a five-year return
[268]
of 45 in line with all other malaysian
[271]
stocks
[272]
we can't really expect mind-boggling
[274]
returns when investing in this market
[276]
but this fund seems to have outperformed
[279]
many others
[280]
compare this to the fbm klci which
[283]
tracks the 30
[284]
largest companies in the malaysian stock
[286]
market and
[287]
only returned this just over one percent
[290]
in 2020. when we put this side by side
[293]
one percent versus 11 we can see by
[297]
how much this etf that why it chose
[300]
outperformed the fbl klci as a whole
[303]
and met the sharia compliant guidelines
[306]
so
[306]
good work choosing the right etf
[308]
forehead in terms of holdings
[310]
these are what they hold the most as of
[312]
january of 2021.
[313]
obviously as per their name they only
[316]
hold strong
[317]
stable companies that consistently pay
[320]
out a dividend to its shareholders
[322]
there's a variety of industries here
[324]
with companies like
[325]
maxis petronas topglove so it gives us a
[329]
bit of diversification
[330]
and at least it's not too concentrated
[332]
on one industry
[333]
which brings along some risk so the
[335]
sukup investment has done well
[337]
and the malaysian stock market has
[339]
outperformed its benchmark
[340]
how did the u.s stocks portion of the
[343]
whitehead portfolio
[344]
done generally i'm always more bullish
[346]
on the u.s stock market
[348]
compared to the malaysian one so fingers
[350]
crossed that why it's u.s portfolio
[352]
choice
[353]
did even better interestingly wahey
[356]
decided to create their own etf
[358]
to manage this part of the portfolio
[361]
naming it
[361]
the wahed footsie usa sharia etf
[365]
this trades under the thicker symbol
[367]
hlal
[368]
or halal so smart name by it looking at
[372]
their top 10 holdings
[373]
there's actually some very very cool
[375]
names in there
[376]
like apple tesla home depot and
[380]
salesforce the only thing that is a bit
[382]
odd to me is that the allocation of
[384]
apple is nearly 20 of this entire fund
[388]
it's not that this is due to apple's
[390]
stock rally because the price has been
[392]
pretty stagnant for the last few
[393]
quarters
[394]
so it must be a conscious decision by
[396]
the fund managers
[398]
at one glance i really like this
[400]
portfolio we may think
[401]
that having to abide to sharia compliant
[404]
rules
[404]
might restrict warhead a bit and result
[407]
in lower returns
[408]
similar to how our epf does however
[411]
looking at these companies here with
[412]
names like
[413]
tesla i can see that this portfolio can
[416]
do very well and is
[417]
actually very forward-looking and here's
[419]
the fun part when we compare the
[421]
performance of this portfolio
[423]
against the s p 500 at all time frames
[426]
including since its inception this wide
[429]
managed etf
[430]
actually beat the s p 500 now that's
[434]
very impressive they even have an excel
[437]
that lists down
[438]
every single stock that they own and
[440]
their allocation to it
[441]
that anyone can go and download from
[443]
their website i assume they do this so
[445]
that people have the comfort of knowing
[446]
that the stocks they invest in is sharia
[448]
compliant so if you want you can go
[450]
check it out
[450]
as i mentioned the fund has done very
[453]
well and since its inception in july of
[455]
2019
[456]
it has returned its investors 38
[459]
which is by no means an easy feat
[462]
looking at the stocks that they
[464]
own i have a strong belief that they can
[466]
continue this growth moving forward
[468]
i really like the investments that
[470]
whitehead uses to allocate our money
[472]
towards
[472]
i currently don't really have a lot of
[474]
money in a wired account
[476]
depositing a total of only around 900
[479]
ringgit so far
[480]
my 57 ringgit returns may not seem so
[483]
big and i know you guys are laughing at
[484]
me
[485]
but when we count it all it's around 18
[487]
so that's not too bad
[488]
moving forward i'm actually considering
[490]
putting more money into my wihed account
[492]
because doing the research for this
[494]
video actually helped me realize how
[496]
well the fund was performing
[498]
so if any of you want to find a good
[500]
place to put your money that is charia
[502]
compliant
[503]
then look no further than why invest you
[505]
can also use
[506]
our referral code so that we can both
[508]
get 10 ringgit once you've signed up
[510]
and deposited your money anyway that's
[512]
it for today's video guys i really
[514]
enjoyed making this because it made me
[515]
realize how good the app was doing
[517]
so give us a big thumbs up if you liked
[519]
the video and subscribe to our channel
[521]
if you haven't already
[522]
see you guys in the next one peace out
Most Recent Videos:
You can go back to the homepage right here: Homepage