Spaceship voyager is a microinvesting app that is sweeping through the Australian market and changing the way we invest. Launching as recently as 2018, the app has already given returns of over 30% per annum, with no fees and no minimum investment. It really sounds too good to be true. I certainly couldn’t believe the numbers when I was reading my account. If you want to be on board for the new way to make your money work for you, read my full review below.
What Is Micro Investing?
Spaceship Voyager is a microinvesting app. That is, an app that will invest all their users money together across many different companies. The benefit of this is that you don’t need to worry about any fees that normally come with share market trading and the risk involved is also far lower considering how many companies your money is invested in. Normally to operate like this, the app will take a small monthly fee such as Raiz who charge $1.25 per month, Spaceship however, is totally free for people with under $5,000 in their accounts.
Microinvesting is without a doubt the new way to invest. Whether you’re a complete amateur with not much of a clue like myself, or someone who could take on the market if they chose to, microinvesting will make you money. Why so many people like microinvesting is simple, the returns are really high. The reason for this and why the fees are 0 in this case, is something called economies of scale.
Economies of scale is basically when someone with a large amount of money wants to acquire something, they can get it at a cheaper rate than someone with a small amount of money. For example McDonalds would be able to purchase hamburger buns for cheaper than a cafe would from the same supplier, as the supplier wants the big contract with McDonalds, so lowers the price as incentive.
Now translate that to our situation: Spaceship is the McDonald’s here and the supplier is people and companies selling shares. Basically your money is buying more shares than it would be able to if you were trading alone, with no pesky transaction fees and still selling them at a normal market price.
Back to the main question, microinvesting with Spaceship is putting your money in someone elses hands, who will make informed choices on your behalf to make you and every other user profit. The team at Spaceship are incredibly skilled at this and it really shows in their returns.
Who Can Use Spaceship?
Spaceship Voyager is open to any Australian resident over the age of 18. The app is available on both iPhone and Android. It’s important to note that no prior knowledge of share market trading is required at all, as the team at Spaceship makes all the hard decisions for you. As long as you initially deposit at least $5, you’re good to go!
Which Portfolio Should I Pick?
Upon signing up you will be asked to choose a portfolio. The two options are Spaceship Universe and Spaceship Index portfolios. Both are free for anyone to use, for the first $5000 AUD you invest. So what’s the difference? While both invest in both Australian and international markets, the difference comes in stability and risk.
The Index portfolio invests in 200 different big name household brands, many of which would sound familiar such as Coca Cola, Samsung and Woolworths. The purpose of this fund is to be a little safer comparatively, as most the companies are well established and already global superpowers. After $5,000 you will have to pay 0.05% per annum as a management fee.
The Universe portfolio invests in 100 companies that are considered to be “where the world is going, not where it has been”. This incorporates brands such as Tesla, Afterpay and Boeing, many of which have seen big rises in the recent years. After $5,000 you will have to pay 0.10% per annum, slightly higher than the Index portfolio.
I personally invest in the Universe portfolio, as I believe the approach of “where the world is going” is a good indicator of growth. While this portfolio is more volatile than the other, it has seen some big winners over the past year and given big returns. But who cares what I think, lets allow the numbers to do the talking. Over the past year the Universe portfolio has grown an unbelievable 38.93%. That is insanely high compared to expected returns from any other type of investment.
The index portfolio is lower, yet still impressively high in the 20% range. It is worth noting however that during a time of local and global uncertainty around the share market, the index portfolio will likely perform better during a crash due to the size of the companies invested in.
How Much Can You Expect To Make?
This will obviously be entirely dependent on how much you decide to invest and how well the market performs. Unfortunately, there’s no set number I can give you on how the market will perform. After the last years insanely high performance, it is very tempting to start seeing dollar signs. But will we see a repeat of this behaviour? Sadly, probably not. It is quite rare for these types of returns to happen and with global tension with the U.S. rising, a slow market will probably be an unfortunate side effect.
There is one thing working on our side though, that is the size of Spaceship Voyager. As mentioned earlier, the more money Spaceship has to invest, the cheaper investing becomes due to economies of scale. Granted the team of investors working at Spaceship keep making excellent decisions (they’ve got a pretty excellent track record so far), then we will see high returns proceed into the future.
Due to the past year of performance, more and more people are jumping on the bandwagon and existing members are putting more money in. So basically, the stronger Spaceship gets, the harder it will be for them to possibly fail.
Is Spaceship Better Than Raiz?
The big question, who to invest your money with. Before comparing them, it’s worth noting that I actually use both, both for the purpose of giving you reviews and updates, but also for my own personal comparison to know who is making the most. Now, the two are very similar in nature and with what they wish to achieve, but both also go a different way about it.
Benefits of Raiz
- More Choice- Raiz gives you 5 different portfolio options to choose from based on risk and dividends.
- Raiz Rewards- a shopback type feature, where you can earn cash back directly invested into your Raiz account from hundreds of different online stores.
- Pure Profile Collaboration- complete surveys to get money directly invested into your account.
- Emerald Portfolio- a portfolio aimed at investing into companies and sectors that promote environmental longevity.
Benefits of Spaceship Voyager
- Higher Returns- since it began Spaceship Voyagerhas far outperformed Raiz, giving investors far higher returns.
- No fees- although Raiz will only set you back $15 a year, Spaceship will cost you nothing at all unless you have over $5,000 in there. Even still, it would take a balance of $15,000 in the Universe portfolio to have the same fees as Raiz.
- Articles and Updates- another handy feature is the homepage being filled with relevant articles and changes regarding the portfolios. Very easy to read and informative.
Simply because of the returns, I prefer Spaceship. The app truly is unparalleled in how well they invest the money.
Deposits and Withdrawals
Depositing is a very easy and pain free process. After linking your bank account, you can deposit a one off amount through the account tab. Enter any amount as low or high as you like and in one touch you’re done. You can also set up a recurring investment via the briefcase icon on the dashboard, which can be weekly, fortnightly or monthly. The transaction is usually completed within 3-5 business days for deposits.
Withdrawing is equally as easy. Under the manage account tab you will find withdraw funds. You will then be shown which account it will transfer into and the transaction will be complete within 2-3 business days.
Why are there no fees under $5000?
You might be wondering about now, how do they pay their staff if there’s no fees? Well the team of investors don’t work for free, instead they take a slice of the overall profits. So in effect, you will still pay fees, but this will be an unknown amount, likely quite small. From the information available, Spaceship currently controls around $40 million AUD across the 2 portfolios.
They also employ 30 people either full or part time, most of which are highly trained. Lets say they spend $2 million a year across staff and the app itself. That means 5% of the profit will go to the staff. This is kind of high, but when you think of how strong their performance is, it’s pretty well deserved.
Before Spaceship entered into microinvesting, they were solely a super company. Not only does this mean that the investor genius’ are proven to make the right calls, but also that your investment is safe with a big company that’s not going anywhere.
Spaceship Super controls $250 million AUD and offers competitevly low fees, while still giving high returns. Similarly to their microinvesting platform, they offer 2 portfolios, one that focuses more on past performance and safe investing and one that looks to the future. I won’t go into too much detail about it here as that’s not what you’re here for. But the point is, Spaceship as a whole is a very genuine and competitive company who are doing everything right.
Spaceship is without a doubt my favourite way of investing. I personally have invested quite a bit with Spaceship over the past 18 months since finding out about them and can’t recommend them highly enough. The bare bones simple approach makes the app accessible to everyone, meaning more users and better returns. This truly is the ultimate amateur investment opportunity for all.
If you wish to sign up to, or find out more about Spaceship Voyager, you can find their website here.