MYTHEO is the latest contender in the robo-advisor space in Malaysia. How will it compare to other notable players like StashAway or Akru? Let’s find out.
What Is MYTHEO?
MYTHEO is a robo-advisor that invests in global ETFs across different asset classes, including but not limited to stocks, bonds, commodities, real estate and many more. Originally from Japan, the investing platform landed on our shores in 2019. Today, they are known to have one of the most diverse portfolios in comparison to other robo-advisors in the Malaysian market. Here’s a list of ETFs that MYTHEO invests in.
What Makes MYTHEO Different From The Rest?
One of the main features that set MYTHEO apart from others is its algorithm, AI and machine learning technology. They use this tech to build a customised portfolio based on your risk profile and long-term goals. This is also why when you first sign up for an account, you’ll be required to take a quick assessment that’s aimed to understand your individual financial goals, investment horizon, and risk tolerance level. Following that, their algorithm will filter and select the most suitable ETFs for your portfolio.
Additionally, MYTHEO also uses their cutting-edge technology to carry out portfolio structuring, auto rebalancing and asset reallocation.
1. Portfolio Structuring
In line with their belief in diversification, MYTHEO’s algorithm allocates your investments into three Functional Portfolios, each with its own purpose and targeted benefit.
The three Functional Portfolio are as followed:
2. Auto Rebalancing
This feature is designed to ensure your portfolio remains aligned with your investment goals, even amidst the ever-changing market dynamics. By rebalancing, MYTHEO adjusts the composition of your portfolio based on the three Functional Portfolios in response to market movements, which helps to maintain your desired level of risk exposure and potential returns.
MYTHEO checks and rebalances your portfolio automatically. This will give you the peace of mind to sleep well at night, knowing that despite market prices fluctuating day to day, your investment is performing as it should be.
3. Asset Reallocation
When it comes to investing, other than choosing the right assets to invest in, the next most important thing is to review and readjust your investment to make sure they are in line with your investment aspirations.
With MYTHEO, you won’t have to worry about this as their technology will continually reallocate your investments in an effort to optimize returns. This strategic relocation is designed to strike an effective balance between risk and return, thereby helping you grow your wealth in a controlled and measured manner.
Fees, Minimum Deposit & Returns
MYTHEO’s fees range on the higher end of the spectrum at 0.5% - 1% p.a., in comparison to other robo-advisors in the market that usually offer a fee of > 1% p.a. However, this higher fee could be attributed to their active Ai and machine learning. Besides that, there will also be a minimum deposit of RM100 required when you fund your account.
Now the part we’ve all been waiting for - MYTHEO’s investment returns. Across all their portfolios, their returns average at ~5% p.a. But do note that this number will fluctuate depending on market conditions and the type of portfolio you’ve selected.
MYTHEO’s Investment Products
MYTHEO offers three investment products namely: MYTHEO Omakase, MYTHEO Global ESG and MYTHEO USD Trust (MUST).
1. MYTHEO Omakase
This product represents MYTHEO’s primary investment offering whereby you leave it all to their algorithm, AI and machine learning to make investment decisions for you.
However, this does not mean that you have no control whatsoever, in fact, with MYTHEO Omakase, you’ll still be able to customise your portfolio, specifically your risk profile, to suit your personal preferences.
The real value of this product lies in its technologically-driven decision-making process. The advanced technology employed by MYTHEO can help mitigate the risk of making impulsive investment decisions, often influenced by human biases, thereby potentially enhancing your overall returns.
MYTHEO Global ESG
This offering is specifically designed for investors with an interest in sustainable investing. Meaning, your investment will go towards ETFs that focus on environmental, social, and corporate governance (ESG) values.
Although sustainable investing is a “relatively” new space, you won’t be limited to a small market because MYTHEO Global ESG will diversify your investment to different markets and regions like the US, Japan, Canada, Australia, China, and the broader Asia Pacific region.
This diverse geographic allocation offers two key advantages. Firstly, it allows you to invest in companies that are leaders in ESG practices across the globe, not just within a single market. Secondly, the diversification across various economies can potentially spread risk and provide opportunities for more balanced returns.
MYTHEO USD Trust (MUST)
This product is quite different from the first two mentioned above. MYTHEO USD Trust (MUST) is a USD trust facility that allows you to keep your deposit and investment proceeds in US Dollars.
You can think of it as a money market fund with the principal difference being its focus on the USD. It accrues interest on a daily basis, leading to an impressive annual return rate of 4.58%. These returns, coupled with relatively low fees that stand at just 0.5% per annum, make MUST an attractive option for investors seeking a stable and low-cost investment vehicle.
A primary advantage of this product is that it offers a level of protection against market volatility and exchange rate fluctuations. However, it might not be the best defence against inflation. Consequently, MYTHEO USD Trust may be best utilized as a short-term investment or a parking place for your funds when you are between investments or anticipating market downturns.
Opening an account with MYTHEO is so simple and fast. Just six steps and you’ll be on your way!
1. Click here to open your MYTHEO account.
2. Get started by filling in your name and email address.
3. Fill out the assessment (mentioned earlier) by answering six simple questions about your investment goals and risk tolerance.
4. MYTHEO will stimulate your projected earnings and you can adjust the variables accordingly to re-stimulate new projections.
5. Fill in your username, personal details and don’t forget to use our code: MMTV1 to get 6 months of fee-free investing.
6. Confirm your registration via TAC.
In less than 5 minutes, you’ll be all set to start investing in global ETFs!
Robo-Advisor Comparison: MYTHEO, StashAway, Akru
When it comes to long-term investing using a robo-advisor, the most effective way to compare its competitiveness is through its past year's performance.
According to an article by The Edge, let’s compare MYTHEO, StashAway and Akru’s past performance for their most aggressive, most balanced and most conservative portfolios.
Most Aggressive Portfolio
Based on this, it shows that in 3 months, Akru’s most aggressive portfolio was making gains of 3.70% which is 0.33% and 0.19% higher than MYTHEO and StashAway respectively.
For 6 months, MYTHEO was still making gains of 0.80% while StashAway and Akru were starting to make losses of -0.97% and -0.10% respectively.
At 9 months, all three were making losses with StashAway making the biggest loss at -6.40%.
And in a year, StashAway’s most aggressive portfolio made a loss of -5.70% in comparison to Akru’s loss of -5.10% and MYTHEO loss of -3.18%.
Most Balanced Portfolio
When it comes to their most balanced portfolio, Akru made the most losses while StashAway made the least. So, for the 12 months period, StashAway won.
Most Conservative Portfolio
Just looking at the 12-month performance, we can see that the difference is wide. Akru made a loss of -0.80% compared to StashAway’s loss of -5.21%. This is a difference of 4.41%.
Akru did quite well for their most aggressive and conservative portfolio but their conservative portfolio definitely needs to be rebalanced more frequently as it made quite a big loss. All in all, if you’re much more conservative with your investment, you can consider using Akru.
When MYTHEO gains, they don’t really gain a lot. However, what stood out to us was that MyTHEO was able to hold its fort when the market got bad. Their algorithm was able to “predict” their losses and quickly diverted their funds elsewhere to “shield” their funds.
When the market gains, StashAway gains a lot. But when the market loses, StashAway loses just as much. This is because their portfolio correlates to the market very closely. This may not be a bad thing because a sudden shock is normal. Historically, the market always bounces back up after a dip.
Should You Use MYTHEO?
If you’re new to investing or simply don’t have the time to trade individual stocks, you can consider using a robo-advisor like MYTHEO. Not only will you have a widely diversified portfolio but you’ll also be able to get pretty steady returns despite volatile market conditions.
Once again, click here to sign up for MYTHEO and don’t forget to use our invitation code: MMTV1.