Raiz (previously Acorns) is a self-directed micro-investing app. Known for its ‘piggy bank’ approach to investing, Raiz Investments’ round-up feature allows you to automatically invest ‘spare change’ with each purchase from a connected account.

 

Raiz Review

Is Raiz’s DIY micro-investing style right for you?

Our Raiz review compares key features of the app with Six Park’s Robo-advice investment service to help you decide which may be the right match for your investing goals, experience, and preferences.

 

Screenshot of Raiz website

 

Six Park vs Raiz

Here you can easily compare Six Park and Raiz.

Six Park Raiz
Investment style Robo advisor Self-directed micro-investing
Fees From $6.25 per month plus an average ETF management fee of 0.25% of the account balance. No other costs apply. From $3.50 per month for a standard portfolio under 15k.

Accounts over 15k incur an account fee of 0.275% per annum.

Extra transactional costs may apply.

Performance 5-year annualised performance (to the end of September 2022)

Conservative: 1.6%

Conservative Balanced: 2.9%

Balanced: 4.2%

Balanced Growth: 5.0%

Aggressive Growth: 5.6%

Raiz has not publicly disclosed its 3 and 5-year performance figures.
Distributions You choose whether dividends are paid as cash or reinvested. Raiz does not pay distributions. Any distributions are automatically reinvested into your Raiz account.
Legal ownership and asset custody Investments are registered in your name – you retain legal ownership of them. Investments are not registered in your name. They are held by a custodian.
Sustainable investment options 5 sustainable investment portfolios. Only 1 sustainable option.

How does Raiz work?

Raiz operates as a registered managed investment scheme, and your money is pooled with funds of other Raiz investors to buy ETFs.

Using the round-up feature, your transaction is rounded up to the nearest dollar each time you make a purchase. This small amount is then automatically invested into your Raiz account.

For example, if your purchase is $5.85 it’s rounded up to $6.00, and 0.15c is invested.

You also have the option to make one-off investments or schedule recurring deposits.

Raiz offers investors the choice of 6 preconstructed portfolios ranging from conservative to aggressive.

 

Is it safe to invest with Raiz?

CHESS-sponsored shares are the safest option. While Raiz doesn’t offer CHESS-sponsored shares, the Custodian will still hold the assets associated with your investments in trust if Raiz ceased to exist.

 

Let’s break down the details:

 

Investment style

Six Park: Robo-advisor.

We offer five essential investment portfolios and sustainable alternatives constructed using carefully selected low-cost exchange-traded funds (ETFs).

Our portfolios range from conservative to high-growth and represent significant underlying analysis and careful crafting by our investment team.

When you start with Six Park, we ask key questions that help us get to know you better as an investor. We can then better understand your personal risk profile, financial goals, and investment time frame.

We then recommend a strategy and portfolio that best fits you. We take all of the guesswork out of the process!

 

Raiz: Self-directed micro-investing

Raiz offers 6 portfolios to choose from, and it’s up to you to decide which is best depending on the likely investment return, your risk profile and investment timeframe.

Taking the DIY approach, especially when you move beyond investing ‘spare change’, could be riskier than getting more personalised Robo advice from a professional team.

At Six Park, our Investment Advisory Committee oversees the asset allocation for our portfolios, which comprises some of Australia’s most respected financial minds.

 

Fees

Six Park

From $6.25 per month plus an average ETF management fee of 0.25% of the account balance.

We keep it easy with simple fees that include regular trading and rebalancing. You won’t be charged to deposit or withdraw funds from your account either.

 

Raiz

From $3.50 per month for a standard portfolio under $15,000.

Account balances above $15,000 incur an annual fee of 0.275% of the balance. This fee doesn’t include any extra transactional costs, underlying issuer fees or personal statement of advice.

There is no fee-free investment tier for new investors with low balances. If you’re only investing ‘spare change’, say 0.20c – 0.30c per transaction, your total monthly investment will likely be minimal. The account fee applies to all balances and could eat into smaller ones.

 

 

Distributions

Six Park

You choose whether distributions are paid as cash or reinvested. Distributions for relevant ETFs are paid into your Macquarie cash management account.

Raiz

Raiz does not pay distributions. Any distributions received by Raiz regarding any ETF units allocated to you will be automatically reinvested into your Raiz Investment Account. You must withdraw your investment if you wish to access it as income.

 

 

Sustainable investment options

Six Park

Six Park currently offers 5 core investment portfolios, each with a matching sustainable alternative you can select when we provide your investment recommendation.

Raiz

Currently, only one sustainable option is available with Raiz, their Emerald portfolio. This portfolio is considered high-growth/risk.

 

Legal ownership and asset custody

Six Park

With Six Park, you own your shares.

When you invest with Six Park, you’ll receive CHESS-sponsored shares and a unique holder identification number (HIN).

What are the advantages of having CHESS-sponsored shares? It means the ASX has a record of you owning the shares directly. They aren’t held by someone else on your behalf, they’re legally yours, and if something happened to Six Park, you wouldn’t lose your shares.

 

Raiz

As Raiz is a managed investment scheme, your funds are pooled with other investors.

Raiz buys ETFs on behalf of investors, but the actual ETF units are held by an independent Custodian (in this case, Perpetual Corporate Trust Limited). Shares are not registered to your name, so you don’t receive a HIN.

 

Final thoughts

Raiz is best known for its round-up feature, which allows you to invest micro amounts into an ETF portfolio. Investors can also make recurring investments and lump-sum deposits.

On the other hand, investing in ETFs through Six Park is an efficient, low-cost way to access a diversified portfolio designed for your risk profile.

To start your investment journey with Six Park, take our personalised assessment and get your free investment recommendation now. Simply tap “Get Started”.

 

This article may contain general financial product information but should not be relied upon or construed as a recommendation of any financial product. This information has been prepared without taking into account your objectives, financial situation or needs. 

For further details on our service please see our Financial Services Guide at http://www.sixpark.com.au. Past performance is not a reliable indicator of future performance.

How it works

1
Getting started - How does it work? Six Park

Take the free assessment

Take our short online assessment so we can understand your investment goals and how long you plan to invest. We will then recommend an appropriate portfolio for you. You can then choose to take on less/more risk and between our standard or sustainable portfolios.

2
Investing - How does it work? Six Park

Fund your account

We set up your accounts, including a cash management and brokerage account. Add money to your cash management account, and when your balance is $2,000 or more, we’ll invest your money in carefully selected exchange-traded funds (ETFs).

3
Keeping track - How does it work? Six Park

Grow & track

Grow your investment by regularly adding money to your account, and we’ll provide regular rebalancing, reporting and reviews, which keeps your investments on track and gives you insight into how your investments are performing.

Get Started

Published April 19, 2021

You may also be interested in

What is SelfWealth? We review the DIY Share Trading Platform Compare Six Park vs Stockspot