Review: Wahed Invest Return Post Covid-19 MCO

Wahed Invest Review 2020

Share via:

Share on twitter
Twitter
Share on reddit
Reddit
Share on facebook
Facebook
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp

Back in February, I’ve blogged about my experience investing with Wahed Invest and my portfolio performance from December to February. I planned to write the subsequent review again only after 1-year, which is next year. But back then, I have no clue on what was about to happen and I received a lot of interests on how my portfolio had performed amidst this Covid-19 pandemic.

What I can only say is this: “What a roller-coaster ride the past 4 months has been“. And in this post, I will be documenting my investment journey with Wahed from March to June 2020. Let’s go!

 

Roller Coaster

 

What’s New In Wahed Invest Since February?

Since my last post, there are a few major changes made by Wahed such as a new portfolio introduction, new US Stocks ETF component and also reduced referral rewards, ouch!

 

1. The New Gold Portfolio

In mid-April, Wahed introduces a new Gold portfolio which gives people the options to invest only in Gold ETF instead of a distributed investment in US Stocks, Malaysian Stocks and Sukuk.

This is probably introduced as a hedging strategy against the high volatility during the pandemic. At times of great uncertainty, gold tends to be the safe-haven for investors.

The Gold portfolio is essentially a new portfolio that goes alongside the existing “Very Conservative” to “Very Aggressive” portfolio. Among the features of the Gold portfolio as highlighted by Wahed is:

  • 97.5% of the allocation to TradePlus Shariah Gold Tracker (ETF) and 2.5% to cash.
  • No subscription and redemption fees.

 

 

Unfortunately, I did not switch my portfolio to Gold and hence, I have no experience on how the process is like or the returns. If you have tried the Gold portfolio, feel free to comment below and share your experience.

 

2. Reduced Referral Rewards

Wahed Invest referral reward is reduced, twice. From the initial RM 40 to RM 20 and then on 15th June, it was reduced again to RM 10. I guess more and more people are signing up and Wahed had acquired enough customers to sustain their business which prompts them to reduce the referral reward.

Just remember that you are investing with Wahed and not just trying to profit through their referral reward. So, a reduction in their referral reward should not be the reason you stop investing.

However, if you still haven’t signed up to Wahed, you can use my referral code: mohbin241. Enter the code during your signing up process to receive an extra RM 10 in your portfolio if you deposit a minimum RM 100 into your funds within 30-days. Check my previous post for a detailed signing up process.

 

Wahed Invest reduced referral

DISCLAIMER: I will also receive a RM 10 referral bonus but fret not, the money is not from your fund. They are a reward from Wahed Invest for helping them to refer to more people. Hope this helps to clarify.

 

3. US Stocks ETF changed

Since Wahed Invest introduction last year, their ETF of choice for US Stocks has been the Dow Jones US Titans 50 (MyETF-US50). The MyETF-US50 is an ETF based in Malaysia that tracks the top 50 shariah-compliant stocks in the US. Click here to read more on MyETF-US50.

In mid-May, Wahed switched the US Stocks component in their portfolio from MyETF-US50 to a new ETF, called Wahed FTSE USA Shariah ETF (HLAL). Unlike MyETF-US50, the HLAL was launched by Wahed themselves and listed in NASDAQ since July last year.

 

Wahed HLAL intro

 

The HLAL ETF tracks over 200 US-based shariah-compliant companies with the highest weightage being Apple. Of course, this includes Tesla! One obvious advantage is the diversification since HLAL tracks over 200 companies while MyETF-US50 only covers about 50. Click here to read more on HLAL on Wahed website.

 

4. More Scams & Syndicates Using Wahed’s Name

Wahed Invest is a great Robo-advisor platform for shariah-compliant investing. It is sad to see some people are using Wahed’s name to market their “get-rich-quick” scheme and scams using the referral system.

I found a few scam pages that are using Wahed’s name to lure people into joining their elaborate scam tactics such as this:

Wahed Invest Scam

Beware of this and don’t fall into the trap, guys! Download the official Wahed Invest apps from the Google Play or App Store and everything can be set up on your own.

 

March to June Performance Review

Although switching between portfolios is easier now, I decided to stick with my Aggressive portfolio from March to June. Let’s take a look at how my aggressive portfolio performs.

 

1. March

Wahed Invest March 2020

My 7% gains in February make a sharp U-turn and by 2nd March, I was only up by 2.84%. Things started to move downside as we entered the MCO and by the end of March, I was down at -7.74%. Yikes!

Just like that, my 3 months worth of gains was wiped out in less than two weeks. This is just to illustrate that any worthy investments are risky and only proceed to invest with the money you are okay to lose.

 

2. April

Wahed Invest April 2020

 

April proves to be the most volatile month within the 4 months. By 9th April, I was down by -8.38%, the lowest that I had been with Wahed Invest so far.

During this time, Wahed introduces their Gold portfolio but for me, I decided to double my investment by setting up a weekly recurring deposit into my portfolio. Think Dollar-Cost Averaging.

True enough, the market starts to pick up again after mid-May and sends my gains up to 12.21%. The gains mostly were due to Gold ETF as well as US Stocks.

 

3. May

Wahed Invest May 2020

Things got better in the earlier weeks of May, which saw my portfolio climbs until 12.64%, the highest that I have ever gained. However, things did not stay for long as by the end of April, my gains drop to around 9.83%.

 

4. June

My portfolio stabilized in June where the gains hover around 7 to 8% which also corresponds to the whole stock market.

 

Conclusions

There you go, my roller-coaster journey with Wahed Invest during these uncertain times. In hindsight, it is easy to say that I should cash out my investments during the peak in May and invest again when the market dips. But during the time, it is hard to tell whether you are at the peak or the bottom.

I intend on investing for a long-term with Wahed and that is why I decide to stand my grounds and keep investing amidst the crazy swings. My lowest and highest gains all occurred within one month. Crazy! I am a firm believer of the time in the market is more important than timing the market.

There are always risks associated with investing. So, do your research and understand what you are going to invest in so that you are not overwhelmed by emotions. Of course, there are safer and less-volatile investments out there and it is probably a good idea to invest there if you are new to investing.

 

ACTIONABLE TIPS: So, what’s your take on investing with a Robo-advisor platform? This great article from iMoney should help to introduce you to the world of Robo-advisor.

How’s your portfolio performance during the pandemic? Share your experience and thoughts in the comment section below. Additionally, do share this post within your Twitter and Facebook circles so that they can read and benefit from my journey with Wahed Invest.

End.

5 1 vote
Article Rating

Share via:

Share on twitter
Twitter
Share on reddit
Reddit
Share on facebook
Facebook
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
matkewangan
matkewangan
Mat is your average Malaysian with the dream of being financially free. Deep down, he knows the journey towards independence is very tough and treacherous, which is why he blogs in Mat Kewangan as a way to keep him motivated and keep the dream alive.
Subscribe
Notify of
guest
12 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Kayla
Kayla
3 months ago

thanks for sharing! you made it easy to understand for a newbie like me 🙂

Abu Yusuf
Abu Yusuf
3 months ago

Thank you very much for the detailed article. Could you please suggest if possible (based on the historical statistics) how much you may get if for example one person invests USD1000 for 3 years in moderately aggressive risk portfolio?
Also how should be the investment model? should it be one time investment or monthly or periodic investment?

PS: Sorry for the basic questions. I am a newbie in this field 🙂

Atiraa
Atiraa
3 months ago

Hi Mat. Thanks for sharing.
I started Wahed October last year and it looks well until February 2020. I was a bit panic when it started to move downside during MCO. Then I changed my portfolio to moderate. I’m a newbie and still learning. Glad i found your article as reference.

Atiraa
Atiraa
3 months ago
Reply to  matkewangan

Yes. It’s gaining and stabilizing for now.

Sara_k
Sara_k
3 months ago

Great article! Thanks for sharing your portfolio. I‘ve been eyeing to invest in Wahed and your writing helps to give a better picture of what it is about. Guess you’ve got a new fan!

Rez
Rez
2 months ago

Hi,
Thanks for the great article. May I know if you have ever withdraw your money? How long would it take for the money to be appeared on your bank account?

Haseef
Haseef
1 month ago

Love your shared insights on Wahed!

As a fresh investor, should I hop in the bandwagon for the Aggressive portfolio? The reward is tempting, plus even if i make a loss, the whole system is meant for a long-term investment so I should recover over time. Whats your thought on this?

Thanks.

Search Blog:

Visitor Counter:

You are visitor number:

Your IP: 34.232.51.240

12
0
Would love your thoughts, please comment.x
()
x

hey, it's a pop-up!!

Mat Kewangan Newsletter

If you like what you are reading and ready to embrace more content on personal finance, investing and self-development, give Matkewangan’s Newsletter a try.

 

It’s a very unannoying list, I promise. I mainly use it to ensure you receive the new posts when they come out and my curated favourite reads once in a while.

 

Sounds good? Sign up for Matkewangan’s Newsletter using the form below.