It is much lower cost to buy, maintain, and grow your money with Endowus Cash Smart than it would be to replicate them on a popular “low cost, no fee” fund platform.
Endowus also gives access to institutional share classes, which typically are half the cost of a retail fund share class.
Endowus gives our clients 100% Cashback on trailer fees received from the fund companies. This amounts to 0.09% per annum for Cash Smart Secure, 0.23% per annum for Cash Smart Enhanced, and 0.22% per annum for Cash Smart Ultra respectively. Endowus only charges an Endowus Fee of 0.05% per annum for Cash Smart.
Popular “low cost, no fee” fund platforms charge platform fees of 0% (Dollardex) to 0.2% (FSM) per annum. More importantly, they keep the trailer fees to themselves, and give investors access to only the more expensive retail share class.
Endowus Cash Smart fees are almost one-third the cost versus FSM. Banks often add on an upfront sales charge, which is an even greater cost.
Total cost after all fees per annum (analysis done in April 2021)
Cash Smart Secure at Endowus: 0.23%
Cash Smart Secure replicated at FSM: 0.65%
Cash Smart Enhanced at Endowus: 0.35%
Cash Smart Enhanced replicated at FSM: 0.91%
Cash Smart Ultra at Endowus: 0.38%
Cash Smart Ultra replicated at FSM: 1.00%
As PIMCO Low Duration Income Fund is not available on FSM, fee was assumed based on the E-Share Class of the fund (1.45% as of 31 Dec 2019), FSM platform fee of 0.2% p.a., and Processing Charge of 0.16%.
Note: As of Nov'21 Endowus Cash Smart Core is now referred to as Endowus Cash Smart Secure. There is no change in the underlying investment offering.