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.
Is Raiz’s DIY micro-investing style right for you?
Our Raiz review compares key features of the Raiz 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.
Six Park vs Raiz
Here you can easily compare Six Park and Raiz.
|Investment style||Robo advisor||Self-directed micro-investing|
|Fees||From $9.95 per month plus an average ETF management fee 0.25% of 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||3 year annualised performance (to the end of March 2021)
Conservative Balanced: 5.4%
Balanced Growth: 8.7%
Aggressive Growth: 9.3%
|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, each time you make a purchase your transaction is rounded up to the nearest dollar. 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, if Raiz ceased to exist, the Custodian will still hold the assets associated with your investments in trust.
Six Park: Robo advisor.
We offer five essential investment portfolios and sustainable alternatives that are 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 get started with Six Park, we ask key questions that help us get to know you better as an investor. From here, we can understand your personal risk profile, financial goals, and investment time frame.
We then recommend a strategy and portfolio that is the best fit for 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 and it is made up of some of Australia’s most respected financial minds.
From $9.95 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.
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 0.20 – 0.30 per transaction, your total monthly investment will likely be pretty minimal. The account fee applies to all balances and could eat into smaller ones.
You choose whether distributions are paid as cash or reinvested. Distributions for relevant ETFs are paid into your Macquarie cash management account.
Raiz does not pay distributions. Any distributions received by Raiz in respect of any ETF Units allocated to you will be automatically reinvested into your Raiz Investment Account. You need to withdraw your investment if you wish to access it as income.
Sustainable investment options
Six Park currently offers five core investment portfolios, which each have a matching sustainable alternative that you can select when we provide your investment recommendation.
Currently, only one sustainable option is available with Raiz, their Emerald portfolio. This portfolio is considered high-growth/risk.
Legal ownership and asset custody
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 won’t lose your shares.
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.
Get started now with Six Park
As you can see, 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, click the “Get started now” button. Take our personalised assessment and get your free investment recommendation now.