I’ve been investing using the micro-investment apps Spaceship Voyager and Raiz, so I thought I would compare Spaceship vs Raiz to see how they performed over the last financial year (2019/2020).
This has been a pretty interesting year for the markets. At one point we were setting record highs, before everything came crashing down thanks to Coronavirus.
Raiz Aggressive Portfolio Performance
So over the past 12 months, unfortunately my Raiz portfolio suffered a loss. Which is expected. My portfolio lost a little over 2%.
The good news is that overall I’ve still made a profit as I’ve been investing on Raiz for a few years. I had really great returns in 2018 and 2019 so my overall portfolio is still showing a positive return 🙂
2020 was a horror year for the markets. My loss is definitely a lot less than what others have lost (imagine owning shares in a company like Virgin Australia). It goes to show that having a diversified portfolio will protect you in times of extreme market turbulence.
Spaceship Voyager Universe Performance
So Spaceship Voyager kind of blew me away with it’s performance. Over the last year, the portfolio has made a 34% return. How?? WTF?? Well companies like Afterpay, Tesla, Spotify are more have all had pretty amazing performance over the last year.
My return on investment using Spaceship Voyager has been pretty amazing and kind of blew me away. I have no idea if this will continue in the future. There could be a crash of tech companies, there could be a major depression – who knows. But right now things are looking pretty good.
These returns won’t be the same for everyone
The returns are based on my accounts. I invest a fixed amount weekly in each app, and I also use the automated round-ups feature on Raiz. But I end up investing roughly the same in each app, every week. If you invest at a different interval (daily, monthly etc) your returns will be different. Even the day of the week you invest on, will have an impact.
On Spaceship I invest in the Universe portfolio. This is made up of future looking companies (like Apple, Netflix, Tesla etc). On Raiz I’m invested in the “Aggressive” portfolio. Obviously the portfolio choice you choose on each app will also make a big difference.
So remember these results are based on my investment. And also remember that past returns are not indicative of future results.
How much did I pay in Fees?
On Raiz I pay around $3-4 each month in fees. So around about $50 for the year. Raiz charges a fee of 0.275% on balances over $10k. Before Coronavirus my gains on Raiz had outpaced these fees by a long, long way. And I expect this will be the same in the future too.
I’ll update this post when I get my annual statement from Spaceship. The fees aren’t shown in the app, because they are part of the fund price. The Spaceship fee for my portfolio is 0.10%. This is less than Raiz so I imagine I’ve paid much less in fees.
Spaceship Voyager is clearly the winner when it comes to fees. If you invest in the index portfolio on Spaceship (which is similar to the Raiz portfolios) you’ll pay just 0.05% in fees.
Spaceship Vs Raiz: Which is Better
Right now Spaceship Voyager’s Universe Portfolio has delivered a better return. Before Coronavirus struck, my Raiz portfolio had delivered a better return. So it’s really hard to say which will perform best over the long term. Because many of the companies in the Spaceship Voyager are future focused, investors must not be too worried about the short term implications of the Coronavirus (well that’s my uneducated best guess).
I’m still going to invest in both platforms. I expect my Raiz portfolio will start to recover as Coronavirus eases up. And because I’ve been investing regularly right through the pandemic, I’ve managed to pick up shares at a much cheaper price!
Overall I’ve been most impressed with Spaceship Voyager. The portfolio didn’t budge much during the pandemic. I’m also much more interested in it as a product. The companies that it invests in, are companies that I can get excited about. So I see myself using Spaceship Voyager as more of a primary investment going forward, especially the fees are half that of Raiz.
Here are some quick points on the two platforms:
- Spaceship Voyager has lower fees compared to Raiz. For balances under $5k you’ll pay no fees on Spaceship. This makes it great for getting started.
- On Raiz you can choose one of 6 different portfolios based on your life stage. On Spaceship Voyager you have two to choose from.
- On Raiz you are investing the assets. On Spaceship you are investing in a fund. I prefer the simplicity of the fund approach and I think it might save me money.
- Both platforms let you get started with as little as $5.
If you’re thinking about signing up…
Both platforms offer a bonus for new members. You can find out how to claim a bonus on Spaceship Voyager here. And you can get a bonus on Raiz here. Make sure you read the PDS for each product to make sure they are a good fit for you.