By buying the underlying stocks that make up an ETF or mutual fund directly, our approach helps investors save on external fund expense fees. For instance, to gain exposure to the emerging financial technology sector, you may invest in an ETF that holds innovative companies that are transforming established industries like insurance, investing, fundraising, and third-party lending through digital solutions. An ETF that tracks this sector would come with an expense fee of 0.68%. Similarly,  a mutual fund with similar exposure, such as BGF FinTech Fund, carries fees of as much as 1.81%.

Overall, if you were to use ETFs or mutual funds to represent the key themes within our Disruptive Tech portfolio, the total external fund expense fees  would add up to anywhere between 0.6% and 2%. By investing directly in individual stocks, you won’t need to pay any external fund fees beyond Syfe’s standard annual management fee. Our management fee covers your portfolio management: brokerage costs, dividend reinvestment, and portfolio rebalancing.