Moomoo MY Cash Plus Review: How I earn competitive interest on my idle cash!
Since the launch of Moomoo MY in Malaysia in early 2024, they have grown to be one of the top stock investing platforms in Malaysia.
In my initial review during the launch, the lack of ability to earn interest on idle cash was one of my criticisms towards Moomoo MY.
However, with the launch of Cash Plus, things have now changed. As a Moomoo MY client, you can now enjoy a low-risk, competitive return on your idle cash when you sign up for moomoo’s Cash Plus funds!
In this post, let's dive deeper into Cash Plus and look at what Cash Plus has to offer!
RELATED POST:
What is Cash Plus?
Cash Plus is a suite of money market and cash funds offered to Moomoo MY users which invest in high-security monetary instruments, such as government short-term bonds and banks' fixed deposits (FD).
Thanks to this, the funds offered by Cash Plus are low-risk options for investors looking to:
- Earn interest on their idle cash while waiting for the next investment opportunity, or;
- Simply saving towards a financial goal in life.
For me, Cash Plus is also a flexible alternative to traditional Fixed Deposits (FDs), where my deposits are locked in for a fixed period with a penalty usually imposed for early withdrawal.
Moomoo MY Cash Plus Benefits
Having used Cash Plus for a period of time, these are what I like about Cash Plus:
#1 Earn daily returns:
By using Cash Plus, you get to enjoy up to 3.5% p.a.* in daily returns. This daily return is applicable even during the weekends.
This is competitive compared to traditional Fixed Deposit rates from banks, especially considering that they come with lock-in period.
*Based on 1-year past returns on Maybank Retail Money Market-I Fund and United Money Market Fund-Class R as of May 2024.
#2 Low barrier of entry:
It is also easy to get started with Cash Plus. All funds in Cash Plus can be subscribed from RM0.01 for MYR money market funds or USD0.01 for USD cash fund.
There is no maximum amount on how much you deposit in Cash Plus.
#3 Swift deposit & withdrawal
With Cash Plus, you are able to make your deposit and withdrawal swiftly, without the typical lock-in period compared to traditional banks' FD:
Deposit time for Cash Plus funds:
| United Money Market Fund - Class R | Maybank Retail Money Market I-Fund | United USD Cash Fund - Class R | |
| Subscription Cut-off time | 12:00pm | 12:00pm | 9:00am |
| Unit confirmed | Within the same trading day (T+0) | Within the same trading day (T+0) | Within the next 2 trading day (T+2) |
| Return posted | The next trading day (T+1) | The next trading day (T+1) | The next 3 trading days (T+3) |
Redemption time for Cash Plus funds:
| United Money Market Fund - Class R | Maybank Retail Money Market I-Fund | United USD Cash Fund - Class R | |
| Redemption Cut-off time | 12:00pm | 12:00pm | 9:00am |
| Unit confirmed | - | T+0 | T+2 |
| Redeemed amount | T+1 (Before 8pm) | T+1 | T+3 |
#4 Flexibility to redeem MYR money market funds for trading anytime
Even better, with Cash Plus, you can redeem your deposits on MYR money market funds for stock trading at any time, without having to wait for the withdrawal to be completed.
This makes it easy to keep your idle cash in the moomoo app working to generate returns for you at all times until you need it for trading purposes.
Meanwhile, deposits in USD Cash Plus fund can only be traded after redemption is completed.
#5 Zero fees + Shariah-compliant fund
In addition, there is also zero fees charged by Moomoo MY for Cash Plus. In other words, all you earn is yours to keep.
For Muslim investors, there is also a shariah compliant MYR money market fund, namely the Maybank Retail Money Market-I Fund that is available to be subscribed by Malaysian Muslims.
#6 NEW: Activate SmartSave to grow your idle cash automatically on Cash Plus!
SmartSave is, in my opinion, one of the best features on Moomoo MY.
By activating SmartSave, the idle cash in your Moomoo MY universal account will be used to buy your appointed MYR Cash Plus funds automatically on each business day.
The good thing? It will not affect your buying power for stocks and subscription to services such as IPO!
In other words, SmartSave allows your idle cash to keep working for you even when it is not invested in the stock market!
3 types of Cash Plus funds
There are 3 funds under Cash Plus. 2 of them are MYR money market funds, and one of them is a USD cash fund:
(A) Cash Plus MYR Money Market Funds
There are 2 MYR money market funds, namely United Money Market Fund-Class R, and Maybank Retail Money Market I-Fund.
| United Money Market Fund-Class R | Maybank Retail Money Market I-Fund | |
| Currency | MYR | MYR |
| Asset Manager | UOB | Maybank |
| 1-Year Return (as of 5/9/2024) | 3.61% | 3.59% |
| Shariah-Compliant | No | Yes |
| Subscription & Redemption fee | No | No |
As a whole, the 1-year return from both MYR money market funds is almost similar. The biggest differentiator for most users would be the Shariah compliance of the funds.
For Muslim investors who seek to invest in Shariah-compliant funds, the Maybank Retail Money Market I-Fund would be the go-to choice.
A major benefit of using Cash Plus MYR Money Market Funds over the USD Cash Fund is the ability to redeem the funds anytime, and even if the funds have not yet arrived, they can be used for trading within the moomoo app.
(B) USD Cash Fund
Aside from MYR money market funds, there is also a USD cash fund to choose from, namely the United USD Cash Fund - Class R:
| United USD Cash Fund - Class R | |
| Currency | USD |
| Asset Manager | UOB |
| 7-day Yield (as of 5/9/2024) | 5.0765% |
| Shariah-Compliant | No |
| Subscription & Redemption fee | No |
United USD Cash Fund - Class R allows investors to gain exposure and earn interest in USD.
The only thing is that unlike MYR money market funds above, I can only use my USD funds for trading once the redemption is complete.
Is Cash Plus safe to use?
- Regulated by Securities Commission Malaysia (SC)
When it comes to regulation, Moomoo MY (registered under the name Moomoo Securities Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MY is always operating in Malaysia as per the guidelines from the local authority.
- CMC Fund Protection
If Moomoo Securities Malaysia Sdn. Bhd. goes bankrupt and you are unable to withdraw your funds, you are eligible to claim up to RM100,000 in compensation from the Capital Market Compensation Fund ("CMC Fund").
Market Risk of Investing in Cash Plus
While being a relatively stable investment, investing in money market fund via Cash Plus still presents exposure to market risk.
One such risk is the fluctuation in interest rates. As an example, if Bank Negara Malaysia (BNM) increases interest rates, MYR money market funds are likely going to generate higher returns. On the flip side, if BNM reduces interest rates, it’ll also affect the returns of money market funds as a result.
Is Cash Plus for you?
Personally, I like the fact that there are both MYR and USD versions of funds available in Cash Plus.
Quick deposit & withdrawal, alongside the ability to access the money in my MYR money market funds for trading purposes, make Cash Plus one of the most versatile cash management solutions that I've used so far.
That said, is Cash Plus for you?
To answer this question, it is best to first know what Cash Plus is NOT:
- Cash Plus does not invest in stocks/equities (ie. Higher risk assets). Hence, do not expect stocks/mutual fund/robo-advisors-like returns.
- Cash Plus does not guarantee returns. Even though it invests in low-risk instruments, returns are still subjected to market fluctuation.
Hence, in my opinion, Cash Plus is great for:
- People with extra cash looking for the next investment opportunity, but wish to earn a stable return in the meantime.
- People looking for a flexible alternative to FD & typical savings account for general savings.
- People looking to save for a specific goal (eg. house, car, wedding).
- People with extra cash and want to save it for the short-term.
🎁 Limited-Time Cash Plus Reward (ending 31/12/2024)
Enjoy the 5% p.a. guaranteed return on Moomoo Cash Plus - applicable to the first subscribed fund, limited to RM10,000 in fund holding.
- Minimum subscription of RM0.01, up to RM10,000.
- 5% p.a. guaranteed return is valid for 30 days.
The subsidy (i.e., the difference between the 5% p.a. and the fund's base return) will be issued in the form of cash coupons to your Moomoo MY Universal Account within 7 working days after the 30-day period ends.
Check out how to subscribe to Cash Plus below!
How to subscribe to Cash Plus?
Step 1: Before subscribing to Cash Plus, you will need to first have a Moomoo MY universal account. Click on the button below to open your account:
Step 2: Within the moomoo app, select 'Account', then choose 'Cash Plus'.
Step 3: Select the specific money market fund in Cash Plus that you'd like to invest in, and click 'Subscribe' at the bottom of the fund details page.
Next, insert the amount that you'd like to invest, read and agree to the relevant agreement documents, and click 'Confirm'.
Step 4: After confirming the purchase information, enter your transaction password to complete the subscription to Cash Plus.
Verdict: Use Cash Plus to earn competitive interest on your idle cash!
Moomoo MY is one of the most complete trading platform in Malaysia and the introduction of Cash Plus certainly makes it more versatile and complete.
Are you going to subscribe to Cash Plus? Which funds will be you choosing? Feel free to share with me in the comment section below!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (“Moomoo MY”). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
All You Need to Know about Dividend Withholding Tax for Malaysians (stocks & ETFs)
Did you know? Depending on where you invest, a tax may be charged on your dividends!
Dividend withholding tax is something that most investors are unaware of when investing.
In this post, let's learn about dividend withholding tax as a Malaysian, how it affects your investments, and what can you do about it!
Related Read:
Highlights of dividend withholding tax
- Dividend withholding tax is a tax that investors incur while receiving dividends from their investments.
- Depending on what you invest in (stocks or Exchange-Traded Funds (ETFs)), the withholding tax rate will apply to you differently.
- Dividend withholding tax impacts each investor differently. In particular, dividend investors should be mindful of the tax when making their investment decisions.
What is dividend withholding tax?
Withholding tax is a method that a country uses to collect taxes from non-residents who have derived income from the country.
As an example, when we invest in stocks in a foreign country (eg. the US), the dividends that we received from our investments are usually charged with a withholding tax. To be precise, that’s what we call ‘dividend withholding tax’.
So, how does dividend withholding tax work? How does it affect us as an everyday investor?
Let’s find out!
How does dividend withholding tax work?
Depending on what you invest in, the way a dividend withholding tax will apply to your investments will differ:
Scenario 1: You invest in stocks
If you invest in stocks, your dividend withholding tax rate is determined by your country of residence.
Most of the time, the rate is determined by whether Malaysia has a tax treaty with the other country.
So, if you invest in US stocks as a Malaysian, you are charged with a 30% dividend withholding tax. If you invest in Singapore stocks, you will enjoy a 0% rate as a Malaysian.
Scenario 2: You invest in funds such as Exchange Traded Funds (ETFs)
The dividend withholding tax rate of an ETF is determined by the country where the fund is domiciled in.
Simply put, ‘domicile’ refers to the country where a fund’s holding company is legally incorporated.
What’s the difference though? Glad you asked.
Essentially, not every ETF listed in a country is necessarily domiciled in that country.
For instance, Singapore has its own S&P500 ETF (which tracks the top 500 listed companies in the US) listed on its exchange, namely the SPDR S&P 500 ETF Trust (SGX code: S27). However, if you dig into the fund’s prospectus, you’d notice that S27 is actually a US-domiciled fund.
Hence investors of S27 ETF, regardless of country of residence, are subjected to a 30% dividend withholding tax.
Meanwhile, S&P500 ETFs such as CSPX and VUAA are Ireland-domiciled ETFs listed on the London Stock Exchange (LSE). Since Ireland has a tax treaty with the US, Ireland-domiciled ETFs are only subjected to a 15% withholding tax.
As a result, instead of investing in US-domiciled funds, Ireland-domiciled ETFs are usually the go-to choice for investors outside of the US to gain exposure to the US market due to favourable tax conditions.
READ MORE: Guide: How to invest in S&P500 as a non-US resident
So, how do we pay our dividend withholding tax?
Essentially, there is no need for an investor to 'pay' dividend withholding tax directly, as it is deducted automatically from your dividends BEFORE it is distributed to you.
As an example, Apple decides to pay out $0.10 distribution per share to investors. Let’s say you own 1,000 shares, you’d receive:
- With dividend withholding tax deducted (30% for US-listed stocks): $70 in dividends ($0.10*70%*1000 shares)
Be mindful of the latest 2% dividend tax
That said, Malaysians should be aware of the latest 2% dividend tax (which is different from dividend WHT) under budget 2025, which targets Malaysians who generate more than RM100,000 in annual dividends from local companies.
Find out more about the latest 2% dividend tax for Malaysians HERE.
Dividend withholding tax rates for Malaysians
Below, you can find the dividend withholding tax rates relevant to most Malaysian investors:
p
| Country | Dividend Withholding Tax Rate |
| Malaysia | 0% (10% for REITs) |
| Singapore | 0% |
| Hong Kong | 0% |
| UK | 0% |
| China | 10% |
| Canada | 15% |
| Australia | 15% on unfranked dividends. 0% on franked dividends. |
| Japan | 15% |
| Ireland-Domiciled ETFs (London Stock Exchange) | 15% |
| US | 30% |
How does it affect you?
Dividend withholding tax affects investors differently.
-
Growth investing - minimal impact
If you invest in growth-related stocks or ETFs like Tesla and ARKW, the impact of dividend withholding tax is minimal.
The reason is, growth stocks do not usually pay high dividends (or they do not pay dividends at all).
-
Dividend investing – significant impact
As for dividend investors, it is essential to be aware of dividend withholding tax while investing.
Since dividends make up a significant portion of the overall return of dividend-focused stocks/ETFs, it is crucial to take into account the impact of withholding tax.
For instance, assuming you invest $100,000 in a US dividend portfolio that generates a 6% dividend yield annually.
Below is the total dividend that you'd earn without dividend withholding tax (0%):
In this case, a 30% dividend withholding tax would cause you to end up with over 42% (~$93,000) less in dividend income over the span of 20 years!
In short, it is obvious that dividend withholding tax will impact the returns of dividend investors as a whole.
How to deal with dividend withholding tax as an investor
Usually, most investors would look to the US stock market while investing globally.
However, the 30% dividend withholding tax from the US can be very costly, especially to investors holding stocks where dividends form a significant portion of their returns.
Here are some of the things you can do to reduce the impact of dividend withholding tax on your long-term returns:
- Generally, avoid dividend stocks/ETFs that are listed or domiciled in the US. For ETFs, you can find out the domicile details on the official site or prospectus of the fund.
- Opt for stocks/ETFs that are listed or domiciled in markets with 0% withholding tax, such as Singapore and Hong Kong.
- Alternatively, you can also opt for Ireland-domiciled ETFs that are listed on the London Stock Exchange (LSE) or Canadian-listed stocks/ETFs, which are generally more tax efficient (15%).
Regardless of the market, Interactive Brokers (IBKR) has you covered with access to over 150 markets in 34 countries (US, Canada, Malaysia, Hong Kong, China, Japan, UK, Singapore, Europe, and more!).
Check out my review on Interactive Brokers HERE.
Side note:
With 0% withholding tax, the Singapore REIT market is one of the most established REIT markets in Asia, and it pays a decent dividend as well! Click HERE to learn more about Singapore REIT ETFs!
A word on tax on Foreign-Sourced Income (FSI) for Malaysians
As of the production of this post, Malaysians are not required to pay any further tax on dividends received from overseas investments, aside from the existing Dividend WHT explained in this article.
In Budget 2025, the Malaysian government has extended individual income tax exemption for Foreign-sourced Income (FSI) from 2026 to 2036.
In short, for your overseas dividends, you are not required to pay any tax aside from the Dividend WHT mentioned in this post - at least until 2036.
Will any of these policies change (for the better or worse)?
Based on my understanding of the Malaysian government’s policy-making habits, I think it is hard to tell and I have zero control over this. So, I will focus on continuing to grow my dividend portfolio instead of worrying about the things that may or may not happen.
I will keep this section updated if there’s any news!
No Money Lah Verdict
I hope this guide has been clear and helpful!
I’ve received many tax-related questions on dividends in the past and I think we may have overcomplicated things due to a lack proper of information.
If you have any questions, feel free to let me know in the comments section below!
FAQ on Dividend Withholding Tax
Q1: How do I pay for dividend withholding tax on my dividends?
You DO NOT need to pay for dividend withholding tax directly. Instead, they are deducted before your dividends are paid to you. In short, the dividends that you are receiving have been offset by withholding tax – there is nothing you have to do on your end.
Q2: Is dividend investing still a reliable approach with dividend withholding tax around?
Personally, I think dividend investing is still the most reliable way to build passive income. Meanwhile, dividend withholding tax is just part of the game, not a bug.
I will give additional thoughts into withholding tax while doing my research, but it will not deter me from building my dividend income portfolio!
Q3: What is the difference between ‘franked’ and ‘unfranked dividends’ for Australia-listed stocks/ETFs?
A franked dividend is a system set by the Australian government to eliminate double taxation in dividends.
As such, franked dividend is paid with a tax credit attached, where shareholders submit the dividend income plus the franking credit as income but will only be taxed on the dividend portion.
Meanwhile, unfranked dividends carry no tax credit. Since the company has not paid tax on the dividends paid, you will have to pay income tax on the particular dividend that you received as an Australian.
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Disclaimers
Any of the information above is produced with my own best effort and research.
This post is produced purely for sharing purposes and should not be taken as a buy/sell recommendation. Past return is not indicative of future performance. Please seek advice from a licensed financial planner before making any financial decisions.
This post may contain promo code(s) that afford No Money Lah a small amount of commission (and help support the blog) should you sign up through my referral link
2% Dividend Tax in Malaysia - My thoughts as a serious dividend investor
As a dividend investor, the introduction of 2% dividend tax is certainly a key highlight of Budget 2025 for me.
In this post, I'd like to dive into more details of this new dividend tax, and share my 2 cents about how it might affect dividend investors like ourselves.
Meanwhile, check out my go-to broker that I use to build my Freedom Fund:
Context: What is this new 2% dividend tax all about?
Essentially, the new dividend tax is a 2% tax that will apply to people with annual dividend income exceeding RM100,000 starting 2025.
Based on my research, this tax will only apply to the amount above the RM100,000 threshold:
Example:
If your dividend income is RM120,000, the 2% dividend tax will be charged for RM20,000 - translating to a dividend tax of RM400 (RM20,000*2%).
Exemptions:
There are some exemptions to this new dividend tax, namely:
- Dividends from EPF.
- Dividends from unit trusts under Permodalan Nasional Berhad (PNB), such as Amanah Saham funds.
- Foreign-sourced dividend income
Dividend withholding tax (WHT) vs Malaysia 2% Dividend Tax: What are the differences?
A part where I think many dividend investors might be confused with are the differences between dividend withholding tax (WHT) and the newly introduced 2% dividend tax in Malaysia.
Essentially, the main difference between them is at which stage the dividend is being taxed.
| Dividend withholding tax (WHT) | 2% Dividend Tax | |
| When is the dividend is taxed? | Withheld and deducted at the company/fund level | Deducted at personal level. |
| Action required from investors | No | Yes. Declare & pay while filing personal income tax. |
| Tax % for Malaysians | 0% for Malaysian companies (10% for REIT) | 2% |
(i) Dividend Withholding Tax (WHT)
Dividend withholding tax (WHT) is withheld and deducted at the company/fund level. As such, when you receive your dividend from an investment charged with dividend WHT, the tax has already been deducted BEFORE it reaches you.
Simply put, there is no action required from the investor's side as dividend WHT is already settled by the company or fund that you invest in.
- Example: I invest in SCHD, a US-domiciled dividend ETF. As a foreigner, my dividend from SCHD is always deducted by 30% before reaching my brokerage account due to a 30% dividend WHT.
- Note: At the moment, the dividend WHT charged to Malaysians is 0% for dividends received from Malaysian companies (10% for REITs).
- Example: Let's say you invest in Maybank and Maybank declares RM0.30/share in dividends, you will get 100% of the RM0.30/share of dividends.
(ii) 2% Dividend Tax for Malaysians
On the other hand, the new 2% dividend tax is deducted at personal level. This means that Malaysians will need to track their dividend income from local companies, and pay for the 2% dividend tax should they exceed the RM100,000/year mark while filing for their income tax.
The pros & cons of implementing the 2% dividend tax instead of dividend withholding tax (WHT) in Malaysia:
- Pro: This 2% dividend tax is targeted only at Malaysians with an annual dividend of over RM100,000. Meanwhile, a dividend WHT would (generally) cover everyone regardless of the dividend amount.
- Cons: Malaysians will need to track their dividends and declare them for the 2% dividend tax while filing their personal income tax, which is additional work. Meanwhile, dividend WHT is deducted at company/fund level which requires no additional action from investors' side.
My thoughts on the 2% dividend tax
Initial thought: This 2% dividend tax is not going to affect most investors since it takes a sizable amount of capital to hit RM100,000 in annual dividend income.
Allow me to expand further:
- The capital you need to hit RM100,000 in annual dividend income depends on the dividend yield of your portfolio.
- Below, I share the capital required to hit RM100,000 in annual dividend income based on different dividend yield (%) of a portfolio:
| Portfolio annual dividend yield | Capital required |
| 4% | RM2,500,000 |
| 5% | RM2,000,000 |
| 6% | RM1,666,667 |
| 7% | RM1,428,571 |
Simply put, the capital required to achieve RM100,000 in annual dividend income will take time for most people to achieve.
Even at a 7% dividend yield (which is a pretty high yield for an investment portfolio), it takes more than RM1.4m to achieve it.
As such, in my opinion, the 2% dividend tax is not going to affect most people.
However, it'd be too irresponsible for me to end our discussion here.
What if there are serious dividend investors who are looking to live off dividends someday? For these investors, with time, hitting RM100,000 in dividend income is certainly possible.
2 ways to navigate around the 2% dividend tax for Malaysian dividend investors
If you are a serious dividend investor in Malaysia, here are 4 ways I can think of - which could help navigate through this 2% dividend tax:
#1 Consider adding foreign-listed stocks and ETFs to your dividend portfolio
For serious dividend investors, diversifying into foreign-listed stocks or ETFs is one of the most direct ways to navigate around this 2% dividend tax.
Since this 2% dividend tax applies only to dividends received from local private and public listed companies, foreign-listed stocks and ETFs can be a good addition to our dividend portfolio.
Since tax exemption for Foreign-Sourced Income (FSI) is proposed to be extended until 2036 under Budget 2025, it is one way to prevent our dividend income derived from locally-listed stocks from going beyond RM100,000 annually.
Investing in foreign-listed stocks and ETFs: Be mindful of dividend withholding tax (WHT)
Despite that, please note that investing in certain overseas markets may come with dividend withholding tax (WHT).
For instance, there's a 30% dividend WHT on US-listed stocks and ETFs. However, some markets offer attractive dividend WHT, such as 0% for Singapore and Hong Kong-listed stocks.
Click HERE to check out my article on dividend WHT.
#2 Consider transitioning partially or completely to EPF or Amanah Saham funds
Another way Malaysian dividend investors can work around the 2% dividend tax is to diversify, or transition their dividend portfolio - be it partially or fully, to EPF (self-contribution) or Amanah Saham funds once the RM100,000 annual dividend is achieved on their dividend portfolio.
Both dividends from EPF and Amanah Saham funds are excluded from the 2% dividend tax.
- EPF has been paying decent dividends between 5.20% - 6.90% (2016 - 2023).
- Meanwhile, Amanah Saham fixed-price funds such as the Amanah Saham Malaysia (ASM) have been delivering returns between 4.00% - 6.30% (2016 - 2023).
2 minor downsides:
2 downsides I could foresee from this approach are:
- By investing your money for dividends on EPF or Amanah Saham funds, you'll have to give up potential capital gains from stocks, which could be an opportunity cost that would matter to some investors.
- EPF self-contribution has a limit of RM100,00 per year, while Amanah Saham fixed-price funds have limited units - so both EPF and ASNB funds have their respective limitations.
Arguments around the 2% dividend tax in Malaysia
From my research, I found 2 key arguments for the 2% dividend tax which is related to dividend investors:
#1 The argument for double taxation
Right now, Malaysian companies are paying 24% of corporate tax on their net profits before distributing dividends, while dividends are tax-free for shareholders.
However, under Budget 2025, an additional 2% dividend tax is charged on the shareholders' side. Hence, this is debated as an extra layer of tax on top of the 24% corporate tax paid on the companies' side.
#2 Tracking dividends can be complicated for investors with a diversified source of dividend income
For investors/shareholders that generate dividend income from various sources, such as dividends from private companies and those with investments with multiple stock brokers, tracking dividends accurately could be more difficult.
At the moment, there is no easy way for these groups of people to track their dividends except for doing it manually
Verdict: "Should I continue to invest for dividends?"
Despite the introduction of 2% dividend tax for Malaysians, I think it should not deter us from building our passive income from the stock market.
Personally, hitting a level of passive income in life where I have the freedom to:
- Prioritize my family over work when the time comes (eg. having kids, aging parents);
- Say 'No' to projects or work opportunities that do not resonate with me;
- Travel or take time off without having to stress about money or income.
Achieving this level of freedom in life is so important to me that this 2% dividend tax will not bother me too much.
I hope this makes sense! Feel free to leave your questions in the comment section below if you have any!
Disclaimers:
Any of the information above is produced with my own best effort and research.
This post is produced for general information purposes only. It is not intended to constitute professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances.
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
Moomoo Malaysia (MY) Review: Almost perfect, with some room for improvements
The highly anticipated Moomoo MY is finally launched in Malaysia in late February 2024, allowing Malaysians to trade the US and Malaysia stock market at a highly competitive fee.
Personally, I’ve been looking forward for Moomoo MY to be launched in Malaysia as they have been offering great pricing for investors in their Singapore counterpart.
So, what is it like to invest through Moomoo MY? How's their pricing/fees like compared to other local brokers?
Let’s find out!
Highlights of Moomoo MY
- Locally-regulated broker: Moomoo MY is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MY's operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- Access to US, Singapore, Hong Kong, China, and Malaysia stock markets: Invest in the US, Singapore, Hong Kong, China, and Malaysia stock markets within the moomoo app.
- Best fee structure for Malaysia-regulated brokers: Moomoo MY offers the most competitive fees for the US and Malaysia stock markets among Malaysia-regulated brokers, with 0 commission trading for all moomoo users for the first 180 days.
- Powerful features: Investors of all levels and experience will appreciate the useful features that will alleviate their investing experiences, such as fractional share trading, a powerful stock screener, 24/7 news, Moo community, and more.
- Room for improvements: A rather lackluster Help section in the app, where you would not be able to find answers to many important questions.
How is Moomoo MY regulated + Safety of Funds
In terms of regulation, Moomoo MY (registered under the name Futu Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC), with a Capital Markets Services License to operate a legal brokerage business:
This ensures Moomoo MY is operating under the best practices and guidelines set by the Malaysian authority.
In addition, clients' funds are kept separately from Moomoo MY's finances through a custodian bank account. Moomoo MY will not have access to your funds and assets, ensuring clear transparency to avoid fraud. This also ensures that if something happens to Moomoo MY (eg. Bankruptcy), your funds & assets will not be affected.
Furthermore, Moomoo MY clients' fund is protected by Capital Market Compensation Fund (CMC Fund), where clients can claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that Moomoo MY is not able to pay clients due to bankruptcy.
Moomoo MY fees & pricing for the US, Malaysia, and Singapore stock markets
One of the reasons why Moomoo MY took the investing community by storm is its highly competitive pricing for the US, Malaysia, Singapore, Hong Kong, and China stock markets.
For pricing, Moomoo MY charges a commission and platform fee respectively. The great news is, new Moomoo MY users will enjoy 0* commission for the first 180 days:
(a) Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant:
| Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant | |
| Commission | RM0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | RM3/trade |
(b) Moomoo MY pricing for US stocks, ETFs, and REITs:
| Moomoo MY pricing for US stocks, ETFs, and REITs | |
| Commission | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | USD0.99/trade |
(c) Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs:
| Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs | |
| Commission | SGD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. SGD3/order) |
| Platform Fee | 0.05% x Transaction Amount, min. SGD5/order |
(d) Moomoo MY pricing for Hong Kong Stocks & ETFs
| Moomoo MY pricing for HK stocks & ETFs | |
| Commission | HKD 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. HKD 3/order) |
| Platform Fee | HKD15/order |
(e) Moomoo MY pricing for China Stocks & ETFs
| Moomoo MY pricing for China stocks & ETFs | |
| Commission | CNH 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. CNH 3/order) |
| Platform Fee | CNH 15/order |
(f) NEW: Moomoo MY pricing for US fractional shares:
May 2024: Fractional share trading for the US market is a newly launched feature by Moomoo MY.
It allows investors to buy and sell shares in fractional units instead of 1 whole unit. Check out the next section ('My Experience' section) as I cover more about fractional trading on Moomoo MY.
| Fractional: Trade Size <1 Share | Normal: Trade Size >= 1 Share(s) | |
| Commission | Waived | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | 0.99% x Transaction Amount (capped at USD 0.99/trade) | USD0.99/trade |
Moomoo MY pricing vs other locally-regulated brokers:
In my opinion, Moomoo MY pricing structure offers the best value for Malaysian investors compared to the likes of Rakuten Trade and M+ Global:
(i) Moomoo MY vs Rakuten Trade fee comparison for the Malaysia stock market (Promo: First 180 days 0 commission trades for new users):
(ii) Moomoo MY vs Rakuten Trade fee comparison for the Malaysia stock market (after 180 days):
(iii) Moomoo MY vs Rakuten Trade vs M+ Global fee comparison for the US stock market (Promo: First 180 days 0 commission trades for new users):
(iv) Moomoo MY vs Rakuten Trade vs M+ Global fee comparison for the US stock market (After 180 days):
Also, take note of other non-platform trading fees that are NOT charged by Moomoo MY while you trade the stock market:
- Malaysia stock market
- US stock market:
My experience investing via Moomoo MY (Features):
The moomoo app is one of the most well-designed investing apps that I've used, which managed to combine useful features without compromising much on ease of use.
Below are some of my personal favourites while using the moomoo app to invest in stocks:
#1 Real-time US and Malaysia price quotes (or price feed)
Moomoo users will be happy to learn that moomoo offers real-time level 2 US market data for FREE (where you usually have to pay on other trading platforms), as well as FREE level 1 MY market data.
What exactly is Level 2 market data?
Essentially, Level 2 market data allows you to see transaction details (ie. Buy & sell activities) across multiple price levels:
Having level 2 market data is equivalent to having an aerial view of the market. For instance, with Level 2 market data, you can detect in real-time if buyers are buying aggressively (or vice versa) and make better entry decisions.
In short, with level 2 market data, you can get a better gauge of market strength.
#2 NEW: Fractional share trading for the US market on Moomoo MY
Fractional share trading is a newly introduced feature by Moomoo MY. It allows users to invest in a fraction of a share from just $5.00 instead of buying the whole share.
Simply put, fractional share trading makes investing with a small capital much more friendly and flexible.
i. Example: Buy fractional share from just $5.00
1 unit of Apple share is worth $189.73/unit. With fractional share trading on Moomoo MY, I am able to buy 0.03 units of Apple share at $5.6919 ($189.73 x 0.03 units).
ii. Cost of Fractional Trading on Moomoo MY vs Rakuten Trade
At this point, Rakuten Trade is another locally-regulated broker that offers fractional share trading.
Let's compare which is better in terms of cost when it comes to fractional trading:
iii. Conditions for Fractional Trading on Moomoo MY
- Not all US stocks and ETFs support fractional trading. To see if a stock or ETF is eligible for fractional share trading, look for the 'Fractional Share' symbol:
- Only day orders are supported, and attached orders or short selling are not allowed
- The minimum order size for fractional trading is 0.0001 shares on Moomoo MY. For fractional trading buying, the minimum order amount is $5.00.
- Once submitted, the quantity of fractional shares orders is not allowed to be edited
- Whole share orders are not allowed to be changed to fractional shares orders
- Editing the price of a limit order for fractional shares is supported after submission and before the order is fully executed or closed.
#3 Visual information on stocks or ETFs within the app
In terms of app design, the moomoo app is also the best stock investing app I've tried so far which puts financial information into easily understandable visuals & charts.
From revenue breakdown, shareholders, dividends, and more, I can get a clear picture of a stock without having to visit other external websites:
#4 Complete trade order execution features, from basic to advanced executions
Having tried many locally-regulated brokerages, I come to appreciate the different trade order execution features that Moomoo MY is offering to users on the moomoo app.
Aside from the basic market and limit orders, I discovered various order execution features (eg. Stop order, Limit-if-Touched), which makes trade execution more versatile for investors and traders alike, regardless of style.
#5 Powerful screener & 24/7 news update
The stock screener within the moomoo app also impressed me. This screener can be super simple, or as sophisticated as you want.
From fundamental to technical filters, you can filter for stocks based on your preferred criteria:
It is also extremely convenient to get the latest financial news in the moomoo app.
Even better, the news is real-time and updated 24/7, making it easy for you to get in touch with the latest updates of the market and the companies that you are investing in.
#6 Moo community
Within the moomoo app, you'll find a vibrant Moo community, comprised of global moomoo users sharing their thoughts and insights on the market.
Not to mention various live webinars that allow you to keep up with the most happening events in the market:
#7 Earn up to 3.5%* per annum on your cash via Cash Plus (*T&C applies)
As a Moomoo MY client, you can also enjoy a low-risk, competitive return on idle cash when you sign up for moomoo's latest Cash Plus funds.
Benefits of Cash Plus:
- Daily returns: Up to 3.5%* p.a. daily returns even on weekends. (*Based on 1-year past returns on Maybank Retail Money Market-I Fund and United Money Market Fund-Class R as of May 2024).
- Low barrier of entry: Subscribe to Cash Plus from RM0.01. There is no maximum amount on how much you deposit in Cash Plus.
- Flexible: Your Cash Plus deposits can be redeemed for stock trading at any time.
- Zero Fees: All you earn is yours to keep
3 types of Cash Plus funds:
2 of the Cash Plus funds are MYR money market funds, while there is 1 USD cash fund:
This means you have the choice to earn interest/returns in either MYR or USD, neat!
Check out how to subscribe to Cash Plus below!
Explore many more exciting and useful features that moomoo has to offer!
Aside from the features that I mentioned above, there are MANY more useful gems waiting for you and me to discover on moomoo!
Some other useful features include Market Position Overview, 'Concepts', and Short Sale Analysis, which I covered in my Moomoo MY feature review.
Personally, I am always discovering new features as I explore the moomoo app, and I will update this review as I come across features that I really like!
What I wish could be improved
From my time using the moomoo app, there are a few things that I wish could be improved:
#1 Lackluster 'Help section'
As an online stock investing platform, I find the 'Help' section of moomoo's app to be lacking in important information compared to other competitors.
Simply put, I couldn't find answers to many commonly asked questions, such as:
Are there fees to corporate action, such as Dividend Reinvestment Plan (DRIP) and rights issue? What to do if I want to subscribe to corporate action?
How is Moomoo MY regulated? Who/which bank is the custodian bank that Moomoo MY has appointed to hold customers' funds?
Is Moomoo MY a nominee or direct CDS account for investing in the Malaysia stock market?
Can I apply for an IPO? If yes, how?
Can I apply to join an AGM? If yes, how?
As such, from my time using moomoo, I find myself reaching out to Moomoo MY's customer support for help - which is a mixed-bag experience on its own - more in the next point.
#2 My experience with Moomoo MY's customer support is rather hit-or-miss
Thanks to a half-baked 'Help' section, I spent a fair amount of time reaching out to Moomoo MY's 24/5 customer support for help and clarification.
Moomoo MY offers 3 channels for users to reach out for help, namely: Livechat, Phone support (03-9212 0708), and email ([email protected]).
What I appreciate about Moomoo MY customer support:
- Multiple channels to reach out for help.
- 24-hour support for live chat and phone support on working days.
- Simple questions that require standard answers are addressed quickly.
What I wish could be better with Moomoo MY customer support:
- As an existing Moomoo SG and Moomoo MY user, I am always directed to Moomoo SG chat agent before I am redirected to Moomoo MY support, where I'll need to readdress my questions. I wish Moomoo could streamline the system for both Moomoo MY and Moomoo SG users so it is easier for us to get help.
- I also faced a difficult time trying to get answers to certain questions, such as which exact custody bank/trust is Moomoo MY using to store clients' assets (eg. funds, stocks).
As a whole, as an online investing/trading platform, I wish to see more improvements in Moomoo MY's Help section and customer support, as they are the only way users can seek assistance when they need help.
Regardless, since Moomoo MY is still relatively new to the local market, I shall revisit their Help section and customer support in the coming months and see if there are any improvements.
Verdict: Moomoo MY is providing the best value for money for Malaysia investors
The launch of Moomoo MY in Malaysia has certainly disrupted the brokerage industry with its attractive pricing & fee offering, coupled with a featureful investing platform.
Now, it is even more affordable for Malaysians to get access to the US, Singapore, and Malaysia stock markets thanks to Moomoo MY.
Despite missing a few features and a slightly lackluster customer support (which I think could be improved with time), I think all these are not dealbreakers for me to recommend Malaysians to give Moomoo MY a try.
Step-by-step: How to open a Moomoo MY universal account & make your deposit
Opening a Moomoo MY universal account is one of the smoothest I've experienced among all the other investing platforms I've tried.
Step 1: Use my referral link HERE to open your Moomoo MY universal account, where you'll get to enjoy various account-opening perks.
Step 2: Fill in your personal details
Step 3: Verify your identity through your IC
Step 4: Provide your tax information, including your Tax Identification Number (TIN) (ie. LHDN number).
Alternatively, if you do not have a TIN number (eg. you are a student), you can enter your IC accordingly.
Step 5: Enter your employment details and financial information:
Step 6: You'll be required to scan your face for verification purposes.
Step 7: Read through the Customer's Declaration and proceed should there be no issue
Step 8: If the application goes smoothly, your account should be approved within 1 - 3 business days. At the same time, you'll also receive an email once your account is approved.
Step 9: Head over to 'Account' > 'More' > 'Deposit' to get instructions on how to make your deposit.
Essentially, the deposit process can be done through (i) FPX transfer (recommended, as deposit is usually done within 5 minutes) or (ii) Bank transfer.
As for deposit via (ii) Bank transfer, log in to your bank account and make the transfer to the Moomoo MY bank details as shown to you.
[Reminder] Remember to claim your account-opening perks! (Under 'Me' > 'Promotion' > Click to redeem your account opening and deposit reward)
Moomoo MY FAQ (Answers extracted directly from customer support)
Ques: Can I attend AGM for the MY and US stocks that I invest in?
Answer: AGM for US stocks: Moomoo MY does not currently support US Shareholders Meeting
AGM for MY stocks: If you want to attend the MY Shareholders Meeting, kindly drop Moomoo MY an email at least 10 business days before the Shareholders Meeting date at [email protected], the email needs to include: 1. A description of the content: Live voting or E-voting. 2. Your Name, Moomoo ID, Contact Number, and Stock code for the meeting. 3. The address of current status quo residence. (in English) Upon receiving your email, Moomoo MY will reply to you with any details.
Ques: I am an existing Moomoo SG user, can I still use my Moomoo SG universal account after opening my Moomoo MY universal account?
Answer: Moomoo MY and Moomoo SG are two different independent brokerage, will not affect each others
Ques: Any fees for corporate actions like DRIP, and rights issue?
Answer: Moomoo MY does not charge any processing fees for corporate actions of stocks (except for handling General Meeting matters). However, any third-party/exchange charges are still applicable to client.
Ques: Is Moomoo MY a nominee or direct CDS account for investing in Malaysia stocks?
Answer: Nominee CDS account
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Futu Malaysia Sdn. Bhd. ("Moomoo MY"). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
How to research for quality Malaysia REITs? My top 5 steps, revealed! (via moomoo app)
Real Estate Investment Trusts (REITs) are companies that own income-producing real estates, such as shopping malls, offices, warehouses, and hospitals.
In Malaysia, publicly-listed REITs have been well-received among dividend investors thanks to REITs' tendency to pay a competitive dividend yield:
As a dividend investor, Malaysia-listed Real Estate Investment Trusts (REITs), such as IGB REIT and Axis REIT make up an important portion of my Freedom Fund portfolio:
In this post, let me walk you through 5 key steps on how I use the handy features within the moomoo app to research for REIT!
RELATED POSTS:
[🎁 p.s. Exclusive 2x RM20 cash coupons for No Money Lah readers! Use promo code 'NML01' when depositing to claim your exclusive reward. Refer to 'Account Opening & Deposit Promotion' section of this article to find out more!]
My 5-step approach to REIT research (via moomoo app)
Personally, if I were to start from zero, I'd generally start my research from a top-down approach with a few key questions:
- Entire sector: How is the REIT sector doing compared to other sectors?
- Within the sector: Which REIT is the top-performing Malaysia REIT?
- REIT vs REIT: How is a particular REIT doing compared to another?
- Individual REIT study: How good/bad are the fundamentals of the REIT?
- Is a REIT overvalued/fairly valued/undervalued?
For that, I find the suite of features within the moomoo app very handy in my research.
Moomoo MY offers beginner-friendly stock research tools
The features & tools on the moomoo app are also very beginner-friendly, as there are easy-to-understand explanations for the financial terms & indicators in the app:
Step 1: How is the REIT sector doing compared to other sectors?
**Before we start, it is important to note that the tools & features that I show below can be used for stocks from other sectors as well.**
To begin, open the moomoo app, select 'Markets' and select 'MY' which indicates the Malaysia stock market:
Feature #1: Heat Map
With the Heat Map feature in the moomoo app, I can see how, as a whole, the REIT sector performs relative to stocks from other sectors in Malaysia.
- Step i: Select Heat Map, and change the view to list view.
- Step ii: Under 'Filter', select 'YTD' which will show us the Year-to-Date performances of each sector:
- Step iii: Sort the performance from highest to lowest:
From this, we can see that the entire REIT sector has been showing a positive Year-to-Date (YTD) performance of 11.62% in 2024:
Step 2: Which REIT is the top-performing REIT?
Next, I'd also like to find out which REIT is the top-performing REIT Year-to-Date.
Feature #2: Compilation of stocks within the same sector
To do so, select 'Real Estate Investment Trusts' from the Heat Map:
- Sort 'YTD' from largest to lowest to view the best-performing REIT year-to-date (YTD).
As of the time of writing this article (Sept 2024), REITs like Pavilion REIT (+26.58%), and IGB REIT (+24.64%) have been outperforming the return of the entire REIT sector (11.62%) year-to-date.
- Sort 'Market Cap' from largest to lowest to view the largest REIT by market capitalization.
Generally, companies with a larger market cap tend to be more established relative to companies with a smaller market cap.
Step 3: REIT vs REIT: How is a particular REIT compared to another?
Want to compare which REIT is better in terms of their dividend yield, and other fundamentals like Earnings Per Share (EPS) and Net Margin?
'Compare' is a powerful feature in the moomoo app that allows me to compare up to 7 stocks side-by-side.
Under 'Compare', I can have all important insights of multiple companies at a glance, such as Dividend Yield, financial indicators, and valuation indicators.
Feature #3: Side-by-side stock comparison
- Step i: Start by selecting a REIT that you'd like to compare. For this demonstration, I'll be selecting IGB REIT.
- Step ii: Select the 3-dot button at the bottom right to activate the expanded menu. Next, select 'Compare'.
- Step iii: Use the '+' icon to add up to 6 other REITs for comparison. For this example, I'll add Pavilion REIT (PAVREIT) and Atrium REIT.
We can get many important insights from the 'Compare' feature. Some key insights that I look for include:
- Price trend comparison over different timeframe (1/3/6-month, 1 & 3-year, and YTD performances)
With this, I can compare the performance of all 3 REITs from a shorter time frame, or even for the past few years.
From a 3-year price trend timeframe, IGB REIT is the top performer among all 3 REITs.
- Dividend yield TTM (Trailing 12-month)
Dividend yield TTM indicates the dividend yield (%) after taking into account of the distribution for the past 12 months.
Atrium REIT comes out top in terms of yield (5.76%), follow by IGB REIT (5.17%) and PAVREIT (3.78%).
- Valuation indicators like Earning-Per-Share (EPS)
EPS measures a company's profitability per unit of the company's outstanding shares.
Generally, a high EPS indicates greater value because investors tend to pay more for a company's shares if they think the company has higher profits relative to its share price.
IGB REIT comes top with the highest EPS among 3 REITs.
- Financial indicators like Return of Equity (ROE), Net Margin, Debt to Asset, Current Ratio
On it's own, financial indicators may not mean much, but there are many insights that we can gather by comparing companies side-by-side.
- To start with, among 3 REITs, IGB REIT has the highest Return on Equity (ROE), which signals that IGB REIT uses its shareholder's equity more efficiently to generate income.
- Next, IGB REIT also has the highest Net Margin, which means it is making the most in terms of net profit per dollar of revenue gained.
- IGB REIT also has lowest Debt to Asset, which indicates that only 26.66% of the assets own by IGB REIT is financed by debt, with the rest owned by shareholders.
- Finally, IGB REIT has the highest Current Ratio of 1.16. A current ratio 1.16 means that IGB REIT has 1.16x more in current assets (eg. cash, short-term receivables), which is enough (>1.0) to cover its short term liabilities (short-term debt).
Step 4: Individual REIT study
In Step 3, we've compared REITs side-by-side. Let's look at how we can use features within the moomoo app to conduct research on an individual REIT.
For this study, let's use IGB REIT, which has displayed an overall competitive dividend yield and decent financial health in Step 3.
Feature #4: Stock insights within the moomoo app
Start by searching for IGB REIT in the moomoo app. Then, select 'Company'
A few key insights that I'll normally look at are:
- （1) Dividend payout consistency or Dividend growth
As a dividend investor, I prefer REITs with a consistent dividend payout, even better are those with a track record of growing their dividends.
With IGB REIT, it has raised its dividend per share (DPS) for the past 2 years since recovering from the pandemic in 2021:
- (2) Company overview
It is also important to know what does a company do while doing a research.
IGB REIT manages 2 retail malls in Klang Valley, namely Mid Valley Megamall and The Gardens Mall.
- (3) Financial strength
Finally, I like to dive into the financials of a REIT. For this, I sort the financials on an 'Annual' basis:
(i) EPS: IGB REIT has been showing strong earnings recovery after the pandemic, which is encouraging for a REIT managing retail malls.
(ii) Net margin: IGB REIT has also shown an increase in net margin post-pandemic, indicating rising profitability.
Step 5: Is a REIT overvalued or undervalued?
To find out if a REIT is overvalued, fairly valued, or undervalued, I usually like to compare its share price to Net Asset Value (NAV) Per Unit:
- NAV Per Unit= (Total Asset - Total Liabilities)/Shares outstanding
In general:
- REIT share price > 3x NAV Per Unit = Overvalued
- REIT share price > NAV Per Unit, but <3x NAV Per Unit = Fairly valued
- REIT share price < NAV Per Unit = Undervalued
How to get NAV on moomoo app?
Let's find out if IGB REIT is over or undervalued:
- Step (i): Find out the total shares for a REIT.
- Step (ii): Deduct Total Assets and Total Liabilities to get Net Asset
Using the latest quarter (Q2 2024) available as reference, IGB REIT has a total assets of RM5.5B and total liabilities of RM1.47B.
Hence, the latest Net Asset Value (NAV) of IGB REIT is RM4.03B.
- Step (iii): Calculate Net Asset Value (NAV) per unit
NAV Per Unit of IGB REIT = NAV/Shares outstanding = RM4.03B/3.61B = RM1.11/unit
As of 10/9/2024, IGB REIT's share price is RM2.04. This makes the share price larger than IGB REIT's NAV per unit of RM1.11 (Price > NAV Per Unit), BUT lower than 3x NAV Per Unit of RM3.33 (Price < 3x NAV Per Unit).
Hence, we can conclude that IGB REIT is currently fairly valued and we can make our investing decision accordingly.
Quick Guide: How to buy your first stock via moomoo app
Looking to place your first stock, REIT, or ETF trade on the moomoo app?
Here's a quick guide on how to place your trade:
- Step (i): Search for the stock that you'd like to buy, and select 'Trade'.
- Step (ii): Choose the order type for your trade. The moomoo app has a suite of basic to advanced order types, alongside the explanation of how each works.
- Step (iii): Select your trade quantity.
- Step (iv): Review the amount needed for the trade. Ensure you have enough cash to place your trade under 'Max Qty to Buy (Cash)', or enough buying power if you trade on margin under 'Max Qty to Buy (Margin)'.
- Step (v): Proceed to place your trade by clicking the 'Buy' button.
Verdict: Make stock research a breeze with the powerful tools & features in the moomoo app!
Having used Moomoo MY since its launch in early 2024, I find the moomoo app to be one of the most feature-packed, yet user-friendly investing platform that I've used so far.
I hope this walkthrough of my REIT research showcase inspires you to explore the features in the moomoo app to improve your investment research process!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (“Moomoo MY”). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
Rakuten Trade US Stock Trading Review: Great for investors, NOPE for traders
In the past, investing in the US stock market via Malaysia-regulated brokers has always been complex and expensive.
This caused many investors to opt for overseas brokers to invest in the US market. However, all this changed when Rakuten Trade launched their much-anticipated US stock trading service.
So, is it good?
Right off the bat, I'd say Rakuten Trade is one of the best local brokers for Malaysian investors to invest in the US market. HOWEVER, I do not recommend it for active traders.
Intrigued to know why? Wonder if you should use Rakuten Trade to access the US stock market? Let’s find out in this full review!
RELATED POST:
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Highlights of Rakuten Trade US Stock Trading
- Affordable fees: Rakuten Trade now allows users to invest in the US market in either MYR or USD, with commissions from as low as RM1 (MYR trading) or USD1.88 – USD25 (USD trading). This is one of the lowest among Malaysia-regulated platforms.
- RM1/USD0.20 flat brokerage: For newly-activated foreign trading accounts, Rakuten Trade is now offering a RM1/USD0.20 flat brokerage for up to 3 months - making it more affordable to trade the US market!
- Powerful features: Rakuten Trade users get perks such as Fractional share trading, FREE live datafeed, and a transparent conversion rate while investing in the US market.
- Access to 3 major markets: Trade the Bursa Malaysia, US, and Hong Kong stock market with Rakuten Trade!
- Room for improvements: No short-selling, no margin trading, and a lack of order execution feature (eg. Market order) means there is room for improvements for Rakuten Trade.
- In short, Rakuten Trade is a great option for investors looking to access the US market at an affordable price. That said, active traders may find the lack of certain features restrictive.
Rakuten Trade US stock trading fees
Let’s start by addressing the elephant in the room: Is Rakuten Trade’s fee affordable?
For this, it is helpful to know that there are 3 kinds of regulated brokers in Malaysia offering access to overseas market, namely:
- Traditional investment banks that offer expensive brokerage fees, usually too shy to display their fees transparently on their website. (eg. Maybank)
- Dedicated brokers trying to disrupt the local brokerage scene with ‘affordable’ fees. Unfortunately, they are still far from affordable, especially for investors with small capital. (eg. FSMOne)
- Lastly, we have Rakuten Trade which offers a fee structure that is actually sensible for Malaysian investors to access the US stock market.
NEW: RM1/USD0.20* flat brokerage fee for newly-activated accounts (5/8/2024 - 31/12/2025)
In August 2024, Rakuten Trade introduced an RM1/USD0.20 flat brokerage fee promotion for up to 3 months for users who activate their new foreign trading accounts. (*T&C applies)
This makes trading the US market on Rakuten Trade one of the lowest among locally-regulated brokers:
| Trade Value (USD) | Rakuten Trade (MYR Trading) | Rakuten Trade (USD Trading) |
| $100 | RM1.00 | $0.20 |
| $1000 | RM1.00 | $0.20 |
| $10,000 | RM1.00 | $0.20 |
| $100,000 | RM1.00 | $0.20 |
Rakuten Trade Brokerage for US market
Even without any promotion, Rakuten Trade offers a brokerage fee from as low as RM1/trade. This makes it very fee-friendly to trade with a small amount on Rakuten Trade.
Well, just check out the comparison table below between Rakuten Trade, M+ Global, FSMOne, and Maybank - and decide for yourself:
| Rakuten Trade (Trading with MYR) | M+ Global | FSMOne | Maybank |
| 1% of Trade Value (min. RM1): <RM699.99 | 0.1% of Trade Value, or Min. USD3.00 | 0.08% of Trade Value or Min. USD3.80 |
Flat USD 25 (Transaction < USD6,250) |
| RM9: RM700 - RM9999.99 | 0.4% (Transaction > USD6,250) | ||
| 0.10%: RM10k - RM99,999.99 | |||
| RM100: RM100k & above | |||
| Rakuten Trade (Trading with USD) | |||
| 0.1% of Trading value, or min. of USD1.88 - USD25 |
Comparing in trading value (RM) side-by-side, this is how much platform fee you’ll be paying using each Malaysia-regulated platform to buy US shares:
| Trade Value | Rakuten Trade (MYR trading/USD trading) |
M+ Global | FSMOne | Maybank |
| RM200 | RM2/USD1.88 | USD3.00 | USD3.80 | USD25 |
| RM1,000 | RM9/USD1.88 | USD3.00 | USD3.80 | USD25 |
| RM5,000 | RM9/USD1.88 | USD3.00 | USD3.80 | USD25 |
| RM10,000 | RM10/~USD2.25 | USD3.00 | USD3.80 | USD25 |
As you can see, for most scenarios, Rakuten Trade offers a more flexible and affordable fee structure for investors without incurring heavy commissions.
Personally, I think Rakuten Trade’s fee structure is game-changing among local brokers.
Now, investors can access the US stock market via a Malaysia-regulated broker at a fraction of the cost, especially for beginner investors with small capital.
Trading experience (Features)
#1 User-friendly interface
Rakuten Trade built their US stock trading service on top of their existing trading platform. As a long-time user, I think this is good news because Rakuten Trade’s platform is really simple to use.
Either from Rakuten Trade’s website or iSpeed app, you can switch between Malaysia and US markets easily.
#2 FREE Live Datafeed (*scroll down further for an important update)
Another plus point with Rakuten Trade is all US stock prices are quoted live (ie. Real-Time) on Rakuten Trade.
For many platforms, you’ll usually have to pay for live data, else you’ll only receive a 15-mins delayed datafeed. This is the case for MIDF Invest, another Malaysia-regulated broker that offers US stock trading.
Hence, it’s great to see Rakuten Trade offering free live datafeed for users. This means that the price displayed for a stock will always be at-the-moment stock price.
*Update 31/3/2023: Subscribe to continue to get FREE live datafeed for US stock market!
Starting April 2023, users that wish to get access to FREE real-time US stocks datafeed will have to subscribe for it at Dashboard -> Setting -> 'Apply for real-time US datafeed'.
Thereafter, you will continue to enjoy FREE real-time US stocks datafeed - just remember to resubscribe every year!
#3: Buy US stocks in MYR or USD – your choice!
Newly launched in August 2022, Rakuten Trade users can now store USD in their Rakuten Trade account.
This allows users the flexibility to trade US stocks and ETFs with either MYR or USD.
Furthermore, users also have the choice to receive USD or MYR when selling their US stocks.
Related Post: When to buy US stocks in MYR, and when to buy in USD?
#4 Live Conversion + Tight MYR-USD Exchange Rate
Rakuten Trade offers a relatively tight MYR-USD spread for users to easily convert between both currencies within the platform.
Furthermore, the conversion process happens real-time, enabling users to convert MYR to USD (and vice versa) with the latest rate and trade right away.
Lastly, unlike certain brokers, there are no extra fees involved in currency conversion (aside from the spread) so there are no worries about hidden fees.
#5 NEW: Fractional Trading for US market
Starting May 2023, Rakuten Trade launched its Fractional Share Trading for US stocks and ETFs.
With fractional trading, Malaysians can buy US shares from 0.01 units instead of the full unit, while selling shares at 0.0001 units. This is a much-awaited feature and it’s great to see it landed on Rakuten Trade.
READ MORE: How to buy fractional shares with Rakuten Trade
3 Areas of Improvement & why this might not be for active traders
With the launch of US stock trading service, Rakuten Trade is set to disrupt the Malaysia brokerage scene.
That said, I think there are some areas of improvement for Rakuten Trade. Below are 5 key areas that I think Rakuten Trade should strive to improve on to serve users better:
(a) Lack of basic order execution features
One thing that I found lacking while using Rakuten Trade to trade US stocks is the missing of (basic) order execution features such as Market Order.
Unfortunately, the only execution option on Rakuten Trade is Limit Order.
- Market Order is an execution feature that allows investors to buy or sell shares at the immediate best price. As such, it is available in most stock trading platforms that I’ve used in the past (even Rakuten Trade’s own Bursa trading)
- Limit Order allows investors to line up their orders to buy or sell shares at a specific price or better.
While this may not be a huge issue for most long-term investors, a lack of Market Order execution may turn off some investors who prefer not to wait for their orders to be matched, or day-traders that require immediate market execution.
I’ve reached out to Rakuten Trade’s team on this matter, and it seems like there is no plan to add execution features like Market Order on their US stock trading service for the time being.
(b) Limited stocks to trade (but it’s improving!)
Secondly, despite offering access to the US market, Rakuten Trade does not actually offer all of the stocks listed in the US market.
That said, Rakuten Trade has been gradually adding new US stocks and ETFs since their launch. As of July 2023, Rakuten Trade offers about 920+ stocks, 25+ ADRs & 240+ ETFs listed on the NYSE and Nasdaq exchanges.
While you may trade the most well-known US stocks (eg. Apple, Tesla, Microsoft) and ETFs (eg. VOO, VTI) tradable on Rakuten Trade, there are some other US stocks that you may not find on Rakuten Trade.
As an example, as a REIT enthusiast, I have no access to stocks like Innovative Industrial Properties Inc (IIPR), which is a bummer.
[Note]: If you have a stock that you want to trade on Rakuten Trade, you can email your request to Rakuten Trade on the matter.
(c) No short selling and margin trading
Short selling and trading with margin are not available on Rakuten Trade too.
Essentially, this means that the only direction that you can execute on Rakuten Trade is for a stock to go up in price.
Also, you are only able to trade US stocks with the cash that you have in your Rakuten Trade account without access to margin facilities.
While this may turn off some stock traders, it shouldn’t be an issue for most long-term investors.
Regardless, having all these features will certainly help Rakuten Trade serve the needs of different retail participants in the market.
Who should use Rakuten Trade to trade US stocks?
While imperfect, Rakuten Trade has offered something that all local brokers failed to do: Access to the US stock market at a truly affordable fee via a Malaysia-regulated platform.
In my opinion, Rakuten Trade is a great option if you are:
- Seeking for a Malaysia-regulated broker to invest in the US stock market.
- Looking to access the US market at a truly affordable fee.
- Looking for a user-friendly platform to invest in the US stock market.
At the same time, it may not suit people who are:
- Active day traders that require market execution (instead of limit order) or more advanced execution features.
- Traders that need access to margin and the ability to short-sell stocks.
- Investors or traders that want exposure to more exotic stocks that are not within Rakuten Trade’s list of tradable stocks.
In short, unless you are an active trader, chances are you’ll like what Rakuten Trade has to offer.
Summary: Is Rakuten Trade a good platform to invest in the US market?
As a whole, Rakuten Trade has offered Malaysians a game-changing manner to invest in the US stock market via a locally-regulated broker.
An affordable fee structure, user-friendly interface, and transparent conversion rate should convince many investors to forgo the need to open a foreign brokerage account (and experience all the hassle of funding & withdrawals).
Unless you are an active day trader or you require access to less familiar stocks, I am sure you’ll be happy with what Rakuten Trade has to offer.
If you are keen to open a Rakuten Trade account, consider using my referral link by clicking on the button below!
Open A Rakuten Trade Account Today!
How to sign up to trade US stocks via Rakuten Trade
(A) How to sign up for US stock trading if you are new to Rakuten Trade:
Step 1: Sign up for Cash upfront account
If you are new, you’ll have to sign up for a Rakuten Trade Cash Upfront account.
Consider using my Rakuten Trade referral link by clicking the button below, and you’ll get 1000 RT points (RM10) which can be used to offset your brokerage fee!
Open A Rakuten Trade Account Today!
If you need help, click HERE for my step-by-step guide to open a Rakuten Trade account.
Step 2: Get your Rakuten Trade account within 2 working hours
Your Rakuten Trade account will be activated within 2 working hours.
Step 3: Log in to your Rakuten Trade account and apply for Foreign Stock Trading
Log in to your Rakuten Trade account either via the website or Rakuten Trade’s iSpeed app. You can locate the Foreign Trading activation button easily within the Rakuten Trade platform.
Step 4: Submit your application for US stock trading
Spend 1 minute to share some info required to trade the US stock market. Then, submit your application.
Step 5: Your Foreign Trading account will be enabled within 2-3 working days
(B) How to sign up for foreign trading if you are an existing Rakuten Trade user:
If you are an existing Rakuten Trade user, just follow Step 3 to Step 5 above and you’ll be good to go!
Disclaimer:
This post contains affiliate links, which afford No Money Lah a small referral (and in return, support this blog) if you sign up for an account using my referral link. The information stated above is based on my personal experience and for purpose of sharing such experience only. It is not intended as professional investment advice. Please contact Rakuten Trade for more information.
Complete Guide: How to deposit funds to Interactive Brokers (IBKR) via Wise, Instarem, and SG Bank
In this post, let's explore the cheapest and most efficient ways to deposit funds into your Interactive Brokers (IBKR) account.
This guide is suitable for non-US residents (eg. Singapore, Malaysia, and more) - any questions feel free to leave them in the comment section at the end of this post!
RELATED:
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Best ways to deposit/fund your IBKR account
There are 3 key ways to fund your IBKR account, namely through (i) Direct transfer from Wise balance, (ii) Direct ACH funding via Instarem, or (iii) Funding your IBKR account through a Singapore (SG) bank account.
Method #1: Funding your IBKR account from Wise balance (Easiest)
This is my preferred way to fund my own IBKR account as I find it the most straightforward method (though not necessarily the cheapest).
Fees incurred:
- Wise transfer fee
- Currency exchange rate
Pre-requisite: Open a Wise account and make a deposit to your Wise balance
Before you begin, be sure to open a Wise account first if you do not have an account.
Step 1: Fund your Wise account
Firstly, log in to your Wise account. Select the currency that you'd like to fund your IBKR account and click 'Add'.
Then, key in the amount you'd like to add, and proceed to fund your Wise account via FPX through your own bank account.
Step 2: Log in to your IBKR account, select 'Deposit'
Select your deposit currency (for me, I choose USD), and select 'Transfer from Wise Balance'.
Step 3: Log in to your Wise account and proceed to transfer your funds
Once your Wise and IBKR accounts are linked, you can proceed with your fund transfer.
Step 4: Transfer done - now just wait for your funds to reach your IBKR account.
From personal experience, it usually takes about 1 working day for the funds to reach my IBKR account.
Method #2: Funding your IBKR account through direct ACH funding via Instarem (Cheapest)
Meanwhile, funding your IBKR account via Instarem is the cheapest option. Don't worry, the funding steps are quite simple as well.
Fees incurred:
- Instarem transfer fee
- Currency exchange rate
Pre-requisite: Open an Instarem account
Before you begin, be sure to open an Instarem account first if you do not have an account.
Open an Instarem account via my referral link by clicking on the button below, and get 200 InstaPoints (worth RM12) which can be redeemed for your money transfer (no min. transaction amount required)!
Step 1: Log in to your IBKR account, select 'Deposit'
Step 2: Select your deposit currency, then opt for 'Direct ACH Transfer from your Bank'
In this example, I am using USD as my deposit currency. But the method should work for other currencies.
A warning pop-up will appear, saying that you must deposit from a US bank account - just proceed by choosing 'Yes'.
Step 3: You'll get 3 key info - a Routing Number, Virtual Account Number, and IBKR's address (address is not displayed in the screenshot below)
Take down these details. In the next step, you will need to use these details to initiate your Instarem transfer.
Step 4: Log in to your Instarem account and begin initiating your transfer
Step 5: Transfer done - now just wait for your funds to reach your IBKR account.
From personal experience, it usually takes about 1-2 working days (sometimes even faster) for the funds to reach my IBKR account.
Once the funds are deposited in your IBKR account, you will receive an email update from IBKR.
Method #3: Funding your IBKR account through SGD via a Singapore Bank (eg. CIMB SG)
The 2nd method is an alternative for Singaporeans and Malaysian users with a Singapore bank account.
Fees incurred:
- IBKR currency conversion rate, if you want to convert your SGD to USD in IBKR
- IBKR currency conversion fee (~USD2.00 - 2.50), if you want to convert your SGD to USD in IBKR
Pre-requisite: Open a Singapore bank account (CIMB SG)
For Malaysians that wish to open a Singapore bank account, you can consider opening a CIMB SG account, which can be done 100% online.
RELATED: Guide - How to open a CIMB SG account online
Step 1: Log in to your IBKR account, select 'Deposit'
Step 2: Select SGD as deposit currency, and get instructions for 'Bank Wire'
Step 3: Key in your SG bank account details and the amount you wish to deposit
Step 4: Initiate transfer from your SG bank account
Use the bank wire instructions from IBKR to make your transfer from your SG bank account.
Log in to your bank account to initiate transfer.
Step 5: Return to your IBKR account and click 'Finish'.
That's all - now you just have to wait for your funds to arrive in your IBKR account.
From personal experience, it usually takes about 1-2 working days for the funds to reach my IBKR account.
Once the funds are deposited in your IBKR account, you will receive an email update from IBKR.
Step 6: Convert SGD to USD in IBKR
If you want to convert your SGD to USD in IBKR to trade USD-denominated stocks, you can do so with the currency conversion feature in IBKR for a small fee.
In your IBKR dashboard, select 'More'.
Use your existing currency balance to convert to USD.
There will be a currency conversion fee/commission of around USD2.00 - USD2.50.
Verdict - Funding your IBKR account is never easier
With platforms like Wise and Instarem, it is extremely convenient to fund your IBKR account at a minimal fee.
Do you have any other tips on how to fund your IBKR account? Feel free to leave your tips and thoughts in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
[Strategy] Dividend growth investing: Why it works
One of the most powerful dividend investments is the one that raises its dividend payout on a consistent basis.
In this post, let's explore one of the most important investing strategy as a dividend investors: Dividend Growth Investing!
Related posts:
Overview: What is dividend growth investing?
Dividend growth investing is an investing style that involves investing in assets that consistently increase their dividend (or distribution) payout.
For instance, a company has grown its dividend by paying $0.10/share in dividends in 2022, $0.12/share in 2023, and $0.15/share in 2024.
Generally, as a dividend growth investor, you can expect your dividends to grow over time.
3 basic dividend investing terms you need to know:
There are 3 dividend investing terms that you need to understand before we proceed. (p.s. Please click on each term for a more detailed explanation):
- Dividend Yield: Dividend yield is an expression of dividends in the form of percentage (%), relative to the share price.
- Distribution Per Unit (DPU): DPU refers to the dividend paid per unit of share.
- Yield-on-cost (p.s. Please make sure you understand this before proceeding): Yield-on-cost is the dividend you get from your investment, divided by the original cost of the investment.
#1 Dividend growth investing via stocks
One way to do dividend growth investing is by investing in stocks that tend to increase their dividends.
Dividend Growth Stock Case Study: Apple (AAPL)
An example of a company with a history of increasing dividends is Apple (AAPL). Let's do a quick 10-year dividend analysis on Apple:
| Financial Year | Dividend Payout ($) | Annual Payout Growth | Yield-on-Cost if you invested on 2/1/2014 (Entry Price: $19.85/share) |
| 2023 | 0.950 | 4.40% | 4.79% |
| 2022 | 0.910 | 5.20% | 4.58% |
| 2021 | 0.865 | 7.12% | 4.36% |
| 2020 | 0.8075 | 6.25% | 4.07% |
| 2019 | 0.760 | 7.80% | 3.83% |
| 2018 | 0.7050 | 14.63% | 3.55% |
| 2017 | 0.6150 | 10.31% | 3.10% |
| 2016 | 0.5575 | 9.85% | 2.81% |
| 2015 | 0.5075 | 9.98% | 2.56% |
| 2014 | 0.4614 | - | 2.32% |
From the above dividend data, we can see that Apple has consistently grown its dividends for the past 10 years (2014 - 2023).
Investing in Apple 10 years ago: What would this mean to you?
If you invested in a unit of Apple share 10 years ago at $19.85/share, your yield-on-cost in the first year was just 2.32%.
However, by 2023, your yield-on-cost would be 5.48% (based on your entry price of $19.85).
Let's find out how much dividends you'd get by owning 10,000 units of Apple share from 2014:
- During the first year (2014), you'll be paid $4614 in dividends (10,000 units x $0.4614), which translates to 2.32% in dividend yield.
- 10 years later (2023), your original 10,000 units of Apple shares will pay you $9,500 in dividends (10,000 units x $0.95), translating to 4.79% in dividend yield.
Thanks to the growth in dividends, your dividend payout increased from $4,614 to $9,500 in 10 years - an incredible 105% growth!
#2 Dividend growth investing via ETF
Another way to execute a dividend growth strategy is by investing in Exchange-Traded Fund (ETF) that tend to grow their dividends.
READ: A beginner's guide to Exchange-Traded Fund (ETF)
Dividend Growth ETF Case Study: Schwab U.S. Dividend Equity ETF (SCHD)
An example of an ETF with a record of increasing its dividend consistently is the Schwab U.S. Dividend Equity ETF (SCHD). Let's do a quick 10-year dividend analysis on SCHD:
| Financial Year | Dividend Payout ($) | Annual Payout Growth | Yield-on-Cost if you invested on 2/1/2014 (Entry Price: $36.54/share) |
| 2023 | 2.6580 | 3.77% | 7.27% |
| 2022 | 2.5615 | 13.90% | 7.01% |
| 2021 | 2.2490 | 10.88% | 6.15% |
| 2020 | 2.0284 | 17.64% | 5.55% |
| 2019 | 1.7242 | 19.79% | 4.72% |
| 2018 | 1.4393 | 6.96% | 3.94% |
| 2017 | 1.3457 | 6.97% | 3.68% |
| 2016 | 1.2580 | 9.72% | 3.44% |
| 2015 | 1.1466 | 9.52% | 3.14% |
| 2014 | 1.0469 | – | 2.87% |
From the above dividend data, we can see that SCHD has consistently grown its dividends for the past 10 years (2014 - 2023).
Investing in SCHD 10 years ago: What would this mean for you?
If you invested in a unit of SCHD 10 years ago at $26.45/share, your yield-on-cost in the first year was just 3.96%.
By 2023, your yield-on-cost would be 7.27% (based on your entry price of $36.54).
Let's find out how much dividends you'd get by owning 10,000 units of SCHD from 2014:
- During the first year (2014), you'll be paid $10,469 in dividends (10,000 units x $1.0469), which translates to 2.87% in dividend yield.
- 10 years later (2023), your original investment in SCHD will pay you $26,580 in dividends (10,000 units x $2.6580), translating to 7.27% in dividend yield.
Thanks to the growth in dividends, your dividend payout increased from $10,469 to $26,580 in 10 years - a whopping 153% growth!
READ: My review on SCHD ETF (why this is my favorite dividend growth ETF)
Why do I choose dividend-growth ETFs over dividend-growth stocks?
There is no one absolute right way to invest since everyone has different goals and aspirations.
Reason #1: Dividend growth ETFs suit my passive investing style
Personally, I choose to invest in dividend growth ETF (such as SCHD) as it is a more passive way to do dividend growth investing.
- I am not a fan of investing in individual stocks:
- Investing in individual stocks means I will always have to be on the lookout for the next dividend growth stocks as my current stock may cut its dividends someday.
- It is an active effort which I am not keen in doing.
- I like how effortless ETF investing is:
- Investing in ETF means I am investing in a basket of stocks that are included as they fulfill the criteria (or methodology) of the ETF. When a stock fails to fulfill the selection criteria, it will be routinely replaced by another stock that is a better fit.
- This selection practice is done automatically by the fund manager, requiring no additional effort from the investor.
Most dividend growth ETFs have a stock selection criteria that ensures that only quality dividend stocks are included.
Reason #2: ETFs have selection criteria (a.k.a. Methodology) in place
As an example, for SCHD, stocks are selected based on the following criteria:
- Dividend payout: Minimum 10 consecutive years of dividend payments.
- Size of the company: Minimum Float Adjusted Market Cap of $500 million.
- Liquidity: Minimum three-month Average Daily Volume of Trading of $2 million.
Then, qualified stocks are further ranked as per the following criteria:
- Dividend yield
- 5-year dividend growth rate
- Company’s financial health (ie. Free cashflow vs debt)
- Return on equity (ROE)
From the above methodology, this gives me confidence that I am investing in a basket of quality dividend growth stocks by investing in SCHD.
READ: My review on SCHD ETF (why this is my favorite dividend growth ETF)
Why dividend growth investing?
Dividend growth is one of the strategies I use while building my Freedom Fund, with dividend growth ETFs like SCHD and FUSD making up close to 20% of my Freedom Fund.
Read: My review on FUSD ETF (Ireland-domiciled ETF)
3 key advantages of dividend growth investing:
- Given time, dividend growth is a great dividend investing strategy as you can expect to receive more dividends from the stocks or ETFs that increase their dividends consistently.
- Aside from a steady rise in dividends, investors tend to also enjoy returns in the form of capital appreciation (ie. Increase in stock price) from most dividend growth stocks/ETFs.
- If you plan to live off your dividends one day, dividend growth strategy is also an effective way to combat inflation.
- If you own a dividend stock or ETF that grows its dividends by an average rate of 8% annually (ie. You get paid 8% more (on average) every year), it will beat a 3% inflation. This prevents your buying power from eroding when you live off your dividends.
Who should do dividend growth investing?
I think dividend growth strategy is a decent choice for:
- Dividend investors with a longer investing time frame before they need to live off their dividends, ideally 10 years or longer.
- Investors who are looking to build a steady & growing cashflow from dividends.
Try it yourself: How to identify dividend growth stocks/ETF (for US market)
Seeking Alpha is a platform providing extensive information on the US stock market.
There's a FREE version that everyone can use (with most features restricted), you can still see if a stock/ETF has been raising its dividends consistently.
Step 1: Head over to Seeking Alpha's site (click HERE) and search for the stock you are looking to research:
Step 2: Under 'Dividends', select 'Dividend Growth'
Step 3: Scroll to the 'Dividend Growth' section and you'll find the dividend payout history of the stock/ETF:
You can also see the annual payout growth of the stock/ETF under 'Dividend Growth History':
Risks & Caveats of Dividend Growth Investing
#1 Risk of dividend cuts
The biggest uncertainty a dividend growth investor must face is the risk of a stock or ETF stop growing its dividends, or even cutting its dividends, especially during a difficult market/economic condition.
As such, it is important to:
- Select stocks and ETFs with a consistent dividend growth history. That said, a healthy record of dividend growth is still not a guarantee of future dividend growth.
- For individual stocks, select companies with a growing revenue and healthy cashflow. This ensures that the dividend growth is sustainable.
#2 Time & patience are the ultimate recipe
A caveat to effective dividend growth investing is it will take time.
Hence, it may not suit investors with a shorter investment time frame (especially if you plan to live off your dividends in <10 years).
Furthermore, dividend growth investing tend to be boring and less exciting compared to the latest hype in the market.
If you invested in SCHD in 2014, your yield-on-cost is just 3.96%, which can be discouraging for investors that have no patience to let their dividends grow.
#3 Dividend withholding tax
Dividend withholding tax is something dividend investors should be aware of while investing.
A 'withholding' tax is a method that a country uses to collect taxes from non-residents who have derived income from the country.
For example, Malaysians investing in US-listed stocks and US-domiciled ETFs will incur a 30% dividend withholding tax.
One work-around is to invest in markets that charge a more efficient dividend withholding tax. For Malaysians, investing in Malaysia, Singapore and Hong Kong stocks and domiciled-ETFs, for instance, comes with 0% dividend withholding tax, while Ireland and Canadian-domiciled ETFs charge a 15% dividend withholding tax.
I will discuss this workaround in more detail in future posts.
p.s. There are also instances where it makes sense to invest in the US stock market for dividends, despite the 30% dividend withholding tax. For me, SCHD is such example as it has one of the most consistent dividend growth track record among dividend ETFs.
READ: To learn more about dividend withholding tax, click HERE.
Verdict: Consider incorporating dividend growth investing in your dividend portfolio
When it comes to dividend investing, most investors tend to go for the stock with the highest dividend yield.
However, dividend investors with a longer investing time frame should give dividend growth investing a try. Most stocks or ETFs that grow their dividends consistently (like Apple and SCHD) tend to start with a lower dividend yield, but would turn out to be an attractive dividend beast with time.
What are your thoughts on dividend growth investing? Feel free to share your thoughts and questions with me in the comment section below!
Disclaimers
Past performance is not indicative of future performance.
This post is produced for general information purposes only. It is not intended to constitute professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances.
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
SCHD Alternatives: 2 best Canadian-domiciled dividend ETFs (ZLU.U, XDU.U)
SCHD is an important dividend ETFn in my Freedom Fund portfolio thanks to its solid record of dividend growth and historical return.
However, SCHD is not perfect for non-US residents. For non-US residents from countries like Malaysia and Singapore, investing in SCHD (listed in the US) comes with a 30% dividend withholding tax (WHT). This is not ideal considering most SCHD investors are investing for dividends.
Let’s say you are receiving $100 in dividends, you’ll only end up getting $70 due to withholding tax.
Investing in Canadian-domiciled ETFs as an alternative
An alternative is to invest in dividend ETFs domiciled in Canada, specifically the Toronto Stock Exchange (TSE), as it comes with 15% dividend withholding tax (WHT) instead of 30%.
In this post, I will review 2 Canadian-domiciled dividend growth ETFs with exposure to the US stock market, and discuss if they are good alternatives to SCHD.
RELATED POSTS:
Overview: What and why invest in Canadian-domiciled ETFs?
Canadian-domiciled ETFs are ETFs registered & traded in Canada (Toronto Stock Exchange (TSE)).
Here are 2 key reasons why dividend investors can consider Canadian-domiciled ETFs over US-domiciled ETFs:
Reason #1: 15% dividend withholding tax on Canadian-domiciled ETFs
Thanks to tax treaties between Canada and Malaysia (the same goes for Singapore), the withholding tax for dividends paid out of Canada is 15% instead of the usual 25% for countries without tax treaties.
Reason #2: Availability of Canadian-domiciled ETFs that track the US market
The Canadian ETF market is also very vibrant, where investors will find many Canadian-domiciled ETFs that track the US market.
This makes it possible for us to find alternatives to SCHD.
Comparison: Canadian-domiciled ETFs vs US-domiciled ETFs
| Canadian-domiciled ETFs | US-domiciled ETFs | |
| Dividend withholding tax (WHT) for non-US residents (Malaysia/Singapore) | 15% | 30% |
| ETFs that track the US market | Yes (though lesser in choice) | Yes |
| Expense ratio | Generally low, but slightly higher than US-domiciled ETFs | Generally low |
| Currency | Mainly in CAD, with variants in USD | USD |
| Commission (Interactive Brokers Pro: Tiered Commission) | USD 0.006 (initial tier), min. USD 0.80/order | USD 0.0035 (initial tier), min. USD 0.35/order |
READ MORE: Interactive Brokers (IBKR) long-term review & pricing
My 2 selection criteria for Canadian-domiciled dividend growth ETF
To recap, SCHD is loved by many dividend investors thanks to its record of dividend growth and decent overall returns.
As such, while looking for Canadian-domiciled alternatives for SCHD, I have 2 key criteria:
#1 Consistent record of dividend growth
Firstly, the goal is to look for Canadian-domiciled ETFs with a record of dividend growth.
This is in line with SCHD which has a 12-year streak in growing its dividends.
#2 Decent overall performance (total return)
Next, it is also important to identify Canadian-domiciled ETFs that delivered a decent overall performance.
In other words, I'd be looking for those that delivered positive historical Total Return (price AND dividend growth).
READ: Introduction to dividend growth investing
#1 BMO Low Volatility US Equity ETF (USD) (ZLU.U)
i. ZLU.U Overview: Exposure to low-volatility US stocks that grow their dividends
The BMO Low Volatility US Equity ETF (ZLU.U) is an ETF that offers investors exposure to the performance of a basket of US stocks with lower sensitivity to volatile market movements.
| Ticker/Symbol | ZLU.U |
| Traded Currency | USD |
| Dividend Yield (As of 08/2024) | 2.11% |
| Expense Ratio | 0.33% p.a. |
| Asset Under Management (AUM) (as of 08/2024) | USD 68 m |
| Dividend Payout Frequency | 4 |
The technical term for 'low market sensitivity' stocks is 'low beta' stocks. Beta is usually measured with reference to a benchmark, usually the S&P500 (beta: 1.00) for the US stock market. The lower the beta of a stock (<1.00), the less it will be impacted by market movement compared to the benchmark.
As of August 2024, ZLU.U has a beta of 0.42, translating to a less volatile nature:
ii. Methodology: How are stocks selected to be part of ZLU.U?
BMO, the fund manager of ZLU.U, uses a rule-based methodology to select the 100 least market-sensitive stocks among large-cap stocks listed in the US.
While ZLU.U's methodology does not involve screening criteria for dividends, the stocks that made it to the selection tend to be dividend-distributing stocks.
In the following section, I will discuss the dividends and overall performance of ZLU.U.
iii. Top 10 holdings, geographical and sector exposure of ZLU.U
I find ZLU.U's overall portfolio to be rather balanced.
As of August 2024, the top 3 sectors of ZLU.U are consumer staples (20.42%), healthcare (17.81%), and the utility sector (17.15%) respectively.
The top 10 holdings in ZLU.U are companies like Lockheed Martin, Johnson & Johnson, and IBM.
These are relatively established companies that have increased their dividends over the years:
iv. A look at ZLU.U Dividends: Track record of stable dividend growth
As of August 2024, ZLU.U pays about 2.11% in dividend yield.
ZLU.U dividend growth has been relatively stable since 2013. It stalled a little between 2017 - 2018, but has shown a solid 3-year growth streak since 2021.
What I appreciate about ZLU.U (compared to the other ETF I discussed in this article), is a longer dividend payout record.
v. ZLU.U Overall Performance: Enjoy stable dividend growth at low volatility
As of July 2024, ZLU.U returned a Year-To-Date (YTD) performance of 9.95%, and a 5-year annualized return of 8.26%:
| Performance as of July 2024 | ZLU.U |
| Year-to-date total return (%) | 9.95% |
| 5-year annualized return (%) | 8.26% |
What's unique about ZLU.U is the fund manager's approach to selecting low-beta stocks. This should translate to a lower drawdown during a challenging market.
Let's see if this is true:
Scenario #1: 2022 Bear Market: ZLU.U vs S&P500
Scenario #2: 2020 Covid-19 Selloff: ZLU.U vs S&P500
Scenario #3: 2018 Trade War Selloff: ZLU.U vs S&P500
vi. Verdict for ZLU.U: A low volatility dividend growth ETF
From the above chart comparison between ZLU.U and the S&P500, I find ZLU.U to be a decent ETF for investors seeking a less volatile investing experience in the US stock market.
Its track record of dividend growth also means investors can enjoy growing dividend income with time.
What do you think of ZLU.U? Let me know in the comment section below!
#2 iShares Core MSCI US Quality Dividend Index ETF (USD) (XDU.U)
i. XDU.U Overview: A balanced dividend ETF
The iShares Core MSCI US Quality Dividend Index ETF (XDU.U) offers investors exposure to US stocks with above-average dividend yield and steady or increasing dividends.
Compared to ZLU.U, XDU.U has a lower expense ratio of 0.15% p.a.
| Ticker/Symbol | XDU.U |
| Traded Currency | USD |
| Dividend Yield (As of 08/2024) | 2.38% |
| Expense Ratio | 0.15% p.a. |
| Asset Under Management (AUM) (as of 08/2024) | USD 13.9m |
| Dividend Payout Frequency | 12 |
ii. Methodology: How are stocks selected to be part of XDU.U?
XDU.U tracks the performance of the MSCI USA High Dividend Yield Index. Stocks are selected based on:
- Strong financials, including a healthy balance sheet and less volatile earnings.
- Then, stocks are screened for factors such as Return on Equity (ROE), earnings variability, Debt-to-Equity, and recent 12-month price performance.
iii. Top 10 holdings, geographical and sector exposure of XDU.U
As of August 2024, the top 3 sectors of XDU.U are consumer staples (18.44%), information technology (15.53%), and the industrial sector (14.28%) respectively.
It is a rather balanced holding with no specific sector dominating over others.
The top holdings of XDU.U include stocks like Broadcom and Procter & Gamble. These are companies that have a record of increasing dividend payout:
iv. A look at XDU.U Dividends: Relatively new dividend ETF waiting to prove itself
As of August 2024, XDU.U pays about 2.38% in dividend yield.
Since XDU.U was listed in October 2019, its dividend track record is limited compared to ZLU.U which we've discussed above. So far, it has recorded a dividend growth streak of 2 years.
What makes XDU.U unique compared to most dividend ETFs is its monthly distribution payout, compared to the typical quarterly payout.
v. XDU.U Overall Performance: Enjoy stable dividend growth at low volatility
As of July 2024, XDU.U delivered a Year-To-Date (YTD) performance of 10.88%. Since it was listed in 2019, there is no data on its 5-year annualized return yet.
| Performance as of July 2024 | XDU.U |
| Year-to-date total return (%) | 10.88% |
| 5-year annualized return (%) | N/A |
vi. Verdict for XDU.U: Not my top Canadian-domiciled dividend growth ETF
Given XDU.U lack of dividend track record, it is not my top Canadian-domiciled dividend growth ETF for the time being.
That said, it should not be overlooked and I will keep track of XDU.U's performance from time to time.
Comparison: Canadian-domiciled dividend ETFs (ZLU.U, XDU.U) vs SCHD
Before I share my concluding thoughts in the final verdict, let me lay out some side-by-side facts & features of the dividend growth ETFs that we’ve discussed in this post today:
| SCHD | ZLU.U | XDU.U | |
| Domicile | US | Canada | Canada |
| Exposure | US market | US market | US market |
| Special traits (as of 08/2024) | 12-year dividend growth streak | Less volatile stocks selection | Fewer years of dividend growth track record |
| Expense Ratio | 0.06% p.a. | 0.33% p.a. | 0.15% p.a. |
| Dividend Yield (as of 08/2024) | 3.43% | 2.11% | 2.38% |
| Dividend Growth Streak | 12 years | 3 years | 2 years |
| YTD Total Return (as of 07/2024) | 10.47% | 9.95% | 10.88% |
| 5-Year Annualized Return (as of 07/2024) | 12.78% | 8.26% | N/A |
How to invest in Canadian-domiciled ETFs
Investing in Canadian-domiciled ETFs like ZLU.U and XDU.U requires access to the Toronto Stock Exchange (TSE).
Since most brokers in Malaysia do not offer access to the Canadian market, my go-to broker to invest in Canadian-domiciled ETFs is Interactive Brokers (IBKR).
Interactive Brokers (IBKR) is one of the most reliable global brokers as it is regulated by financial authorities in over 10 countries (eg. US, UK, SG, HK, Canada, and more).
Aside from that, IBKR offers access to the USD-denominated Canadian-domiciled ETF at an affordable fee. You can check out IBKR’s fee structure HERE (under ‘Canada’ > ‘USD-denominated’)
READ: My Interactive Brokers (IBKR) long-term user review
Verdict: While not perfect, Canadian-domiciled ETFs provide a more tax-efficient way to invest for dividends in the US stock market
My search for the best SCHD alternative brought me to explore Canadian-domiciled dividend ETFs,
Just like my research on Ireland-domiciled dividend ETFs, I think there is no perfect alternative to SCHD in the Canadian stock market.
Despite Canadian ETFs being more tax efficient (15% dividend withholding tax), SCHD's 12-year dividend growth streak is difficult to beat. Furthermore, SCHD also has the lowest expense ratio of 0.06% p.a. compared to ZLU.U and XDU.U.
Ultimately, it is up to us as investors to decide what compromise to take while deciding between US or Canadian-domiciled ETFs.
What do you think?
Stay tuned as I continue my quest to search for the best SCHD alternatives (in other markets, maybe!).
Meanwhile, check out my go-to broker to invest in Canadian-domiciled ETFs below!
Disclaimers
Any of the information above is produced with my own best effort and research.
This post is produced for general information purposes only. It is not intended to constitute professional buy/sell advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances.
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
Read this BEFORE the next market crash/bear market
It's difficult not to be amazed by the dynamics of the stock market.
It could be crazily calm and bullish for months, and 'poooof' - panic crash.
A panic selloff or crash for a longer period could happen for many reasons, but I do not intend to talk about it in this article. Chances are, you will be able to find out WHY the market does certain things at almost every corner online:
What's underrated (and less talked about) is HOW to deal with a tricky or challenging market condition as an investor.
As such, my intention with this article is to produce a reflection, or guide that I'd come back to every time there is bloodshed in the stock market (for whatever reason).
I hope sharing this with you can help you handle the next (and inevitable) market selloff better than the previous ones.
Such is the life of an investor in the stock market. Let's get started:
"What's your goal?" - How to be psychologically ahead of 99% of investors in the stock market
As cliché as it may be, I think being clear about why you invest is the most important thing in investing as it is something you could fall back on when things seem bleak and fearful.
Personally, I have 2 main portfolios and 2 clear goals with a timeline:
- Dividend investing (via my Freedom Fund) to complement my cashflow in about 15 – 20 years. Those would be the time of my life when my parents might need more care.
- Growth investing for my retirement in about 30 years, mainly through Exchange-Traded Funds (ETFs).
p.s. You can read about my investing strategies/approach HERE.
By setting a clear goal, I accomplish 3 specific things:
- The motivation behind WHY I invest (Complement cashflow and Retirement)
- A clear TIME FRAME of my investing journey (15 - 20 years and about 30 years)
- HOW I invest (Dividend and Growth Investing)
It is every investor’s responsibility to find out their goal. Again, it does not have to be complicated. Just cover 3 things:
- WHY do you invest? (I hope it's not for quick money)
- What's your investment TIME FRAME?
- HOW do you plan to invest?
Knowing these 3 would put you ahead of most people in the market as they give you:
- The conviction to stick to the plan during a challenging market.
- The temperament to not be influenced by short-term hype and news.
- Even better, the confidence to buy more when everyone is panicking
In the following section, let's look at some useful perspectives about stock market selloffs.
Some useful perspectives about stock market selloffs
#1 Drawdown is common and inevitable
Stock market selloffs and crashes are part and parcel of investing. Do not let a relatively smooth 2023 and (most of) 2024 tell you otherwise:
If you invest in the US stock market (ie. the S&P 500), chances are high that you will experience a 5% drawdown almost every year. After all, it happened 94% of the time from 1928 - 2023.
Even the odds of a >20% drop in the stock market are not uncommon. It occurred 26% of the time in the past. Simply put, the stock market has experienced a big drop in 25 out of the past 96 years.
#2 The stock market went up regardless
Despite the high odds of a stock market drawdown, the S&P500 has grown by 898,634.26% from 1928 - 2023.
This translates to an annualized return of about 9.95%/year.
You don't see this being mentioned as much on social media and news compared to reports about stock market crashes. Boring news does not attract eyeballs.
READ MORE: Intro & how to invest in the S&P500
#3 There's always a reason to sell
It is easy to find reasons to sell and get out of the stock market in each panic selloff or market crash. Social media and news make it even easier.
Difficult times are when you fall back on your WHY in investing. You only need one WHY to stay the course.
#4 Time in the market > Timing the market
The ability to stay invested in the stock market is one of the most underrated skills of investing.
As I am writing this, we've just experienced one of the biggest panic selloff in recent years. Monday (5/8/2024) was full of fear and uncertainties.
Come Thursday (8/8/2024), the market bounced back, producing one of the best days in months/years.
Goes on to show how important it is to stay invested in order to participate in positive movements in the stock market.
We can't enjoy the good stuffs if we cannot stick through the difficult times.
Common emotions and how to deal with them
The stock market is a fascinating place as it teaches us more lessons about ourselves than most other endeavours could, especially our emotions on money and risk.
Here are 4 emotions I experienced as an investor over the years.
Allow me to define them as I believe the clearer I can define these emotions, the better I am in managing them.
#1 Fear of missing out (FOMO)
The urge to buy without a clear plan or reason.
Common reasons for FOMO:
- Not having a clear idea about my investing goals, style or strategy (time to re-visit my WHY and HOW).
- I am turning speculative from my initial goal of long-term investing.
- I have been on social media for too long (log out!).
#2 The urge to sell out of fear
The urge to sell my holdings when the market is crashing or panicking.
Common reasons for the urge to sell out of fear:
- I do not know what I am investing in, hence I lack conviction or confidence to hold on to my investments (learn to build my own investment thesis).
- I am risking too much/I am investing using money I cannot afford to lose.
- I have been on social media for too long (log out!).
#3 The urge to time the market
The tendency to want to buy when the market is at its 'lowest' point. Ending up missing out when the market rebounds or recovers.
Common reasons for the urge to time the market:
- I think I am the stock market god (snap out of it!)
- I want to post about it and look cool on social media (ego).
- I got lucky a few times, and thought I could do it again (anchoring bias). Bad kind of lucky!
#4 Regret of not buying more when the market rebounds from a selloff
The strongest emotions of all, as it comes with the hindsight of 'what could've been'.
Common reasons for regret of not buying more when the market rebounds:
- I think I can time the market (read Reason #3)
- Note to self: I only know this because it happened. Hindsight is worthless in a scenario like this.
The goal is NOT to avoid emotions while investing. It is learning how to deal with them better when we experience them.
3 final thoughts on investing during a stock market crash/bear market:
#1 Let's take a step back: Do personal finance BEFORE investing
A common reason why one might feel the urge to sell out of fear is due to one risking money they cannot afford to lose.
In other words, we could be risking too much in the stock market that we get very sensitive to market moving against us.
One way I have managed this over the years is by building up more savings and emergency funds with time. This way, I know I do not need to rely on selling my long-term investments during a short-term uncertainty.
With a safety net of savings and an emergency fund, it has helped me keep my composure and allowed me to stick to my investing plan during a difficult market condition.
Do well in your personal finances and investing becomes easier.
FIND OUT MORE: My experience engaging a licensed financial planner in Malaysia
#2 Why I rarely pick stocks anymore
In recent years, I have switched a lot of my individual stocks to Exchange-Traded Funds (ETFs) like the S&P500 ETF and SCHD.
One reason is the convenience that ETFs bring to the table:
- Diversification - Reduce the risk of investing in individual stocks. The risk of individual companies going obsolete is way higher than the entire stock market.
- ETF screening process - Most ETFs are built with a screening process to include qualified stocks that fulfill their criteria, and exclude the ones that aren't qualified.
ETF screening process is important, as it automates the stock selection process on investors' behalf.
Let's use S&P500 ETFs as an example. While the S&P500 has grown by 9.95% per year since 1928, the top stocks in the S&P500 are very different 30 years ago vs today:
In other words, time and market dynamics (such as a market crash) will make some individual companies obsolete, but the stock market tends to continue growing thanks to its built-in selection process.
#3 Learn to build your investment thesis
If you have bought stocks for the sake of buying (or FOMO), a market crash is a good learning opportunity to reassess your approach to investing.
Learning to form your investment thesis is a great way to enhance your conviction while facing a crash or panic market.
A simple (yet useful) thesis could be something like this:
- Why do I buy a stock/asset?
- How long am I planning to own it?
- Under what circumstances will I consider selling it? This is usually when there is no more reason to own the stock/asset, or when you have achieved your investment goal.
Verdict: Reminder to self - this is normal
I do not hate or like a market crash or bear market. For me, experiencing them is part of a journey of investing.
What I appreciate though, is the lessons that come with it:
It is not about avoiding a bear market or market crash. It is not about avoiding fear, FOMO, or regrets.
Rather, it is about how we learn to accept that these market phenomena and emotions are part of investing - it is our role to become a better investor with risk and uncertainties in an effort to grow our wealth.
Hope this makes sense!
Disclaimers
Any of the information above is produced with my own best effort and research.
This post is produced for general information purposes only. It is not intended to constitute professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances.
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.