I thought this is a good timing to do a quick review on my Autowealth portfolio, as the market is tanking. Cause the previous 2 reviews (1st year and 2nd year) were done when market is up only.
Recap
I started using Autowealth back in 2019. The main reason for using Autowealth back then was that it was a simple strategy of automating asset allocation and rebalancing. This is still the reason that I will continue to use Autowealth in the future.
I am still invested in the Long Term Growth Portfolio, which does a 20% bonds/80% stocks allocation. I have been dollar cost averaging into this portfolio very month. Will continue to do so as long as I still have an income.
HOW HAS MY AUTOWEALTH PORTFOLIO PERFORMED?
In case you haven’t been following the market lately, the S&P500 has fallen -18.68% year to date (as of 19May2022).
Compare that to my Autowealth Portfolio.
I’m still up 4.93% on my portfolio considering the doom and gloom on the market outlook.
Looking at the performance of my assets, most of my gains came from US equities. Bonds were the biggest loser because of Fed raising interest rates, and they will continue to do so until they see a decline in the CPI index.
That said, this is a portfolio that I generally do not monitor. I just setup a recurring transfer every month. I pay US$18 + 0.5% fee on my portfolio per annum to have this automated. You can definitely DIY and save on the fees, but at the end of it, it’s all about time/effort against money.
SUMMARY
When investing, I like to automate it. Because it takes the emotion out of investing especially at a bear market like this. We don’t know where the bottom is, but we just have to keep investing.
And by dollar cost averaging every month, I buy regardless of whether the market is up or down. Given a long enough time frame (5-10years), the possibility of your portfolio going up is high.
Autowealth is a great tool to use for passive investing. Your portfolio gets auto rebalanced. You get assigned a Wealth manager (a human touch is rare in this era) who will help you when you have queries. So I will be sticking with them for a while.