Spaceship Voyager is a micro-investing platform tailor-made for retail investors seeking to grow their portfolio effortlessly. Geared towards passive growth, it opens the doors for everyone with its no minimum investment policy, allowing you to embark on your investment journey with as little as $1. Unlike CommSec Pocket, Spaceship Voyager grants investors access to top ETFs at low fees. Start your investment adventure today with Spaceship Voyager and watch your wealth soar!
Pros
Choice of portfolios with customisable risk levels, performance history, and company types to suit individual preferences
No fees for balances below $100 and only $30 per year for accounts with a total balance of $100 or more
Expert-selected companies in each portfolio, eliminating the need for personal expertise in investing decisions
User-friendly Spaceship Voyager mobile app for convenient access to investment information
Auto top-up option for regular small investments
Cons
Limited investment choices, restricted to three funds instead of individual companies
No guarantee of sustained high returns, as past performance may not indicate future growth
Portfolios include investments in foreign shares without hedging against currency exposure, leading to potential impacts on portfolio value due to currency fluctuations
What Is Spaceship Voyager?
Spaceship Voyager is a user-friendly micro-investing platform designed for individuals new to investing, providing an easy entry into the stock market. With no minimum investment requirement, even as little as $1 can be invested, alleviating the fear of committing large sums of money.
Spaceship Voyager employs an automated technology-driven approach to offer personalised advice, reducing guesswork in investing. However, this method proves significantly more cost-effective than consulting a professional, making it an appealing choice for beginners or those with limited disposable income.
Investors can select from three distinct portfolios and have the flexibility to deposit lump sums or establish regular weekly, fortnightly, or monthly top-ups. Spaceship Voyager empowers users to monitor portfolio progress and seamlessly link an external bank account for convenient deposits and withdrawals.
Spaceship Voyager Investment Portfolios
Spaceship Voyager presents three diversified portfolios, each comprising shares from a wide array of companies spanning various countries worldwide, including Australia, the US, China, and Argentina.
Spaceship Universe Portfolio
Spaceship Universe Portfolio is a thoughtfully curated fund comprising 70-100 carefully chosen companies that align with Spaceship’s forward-looking vision called “where the world is going” (WWG) criteria. To make selections, the WWG methodology assesses each company’s competitive advantage and potential for future product or service growth. The portfolio includes renowned US companies like Facebook, Tesla, Apple, and Microsoft and prominent Australian companies like Afterpay, Zip, and Seek.
Regarding asset allocation, the fund typically invests within specific ranges as follows:
Over the one year ending on 31 January 2021, the fund impressively achieved a return of 47.84%. During the 32 months from the portfolio’s “funded date” on 15 May 2018 to 31 January 2021, it reached an annualised return of 29.46% p.a. These returns, while notable, should be considered alongside the reminder that past performance may not reliably indicate future performance.
Spaceship designates the risk profile for this fund as high due to its increased risk and volatility compared to some other funds. But it also presents the potential for higher long-term returns than lower-risk investments. Investing in this fund requires a minimum suggested timeframe of seven years, indicating a commitment to retaining your investment for at least that duration.
Spaceship Origin Portfolio
Spaceship Origin Portfolio is a passive index fund that comprises the top 100 Australian listed companies and the top 100 international listed companies based on market capitalisation. To determine which companies to include, Spaceship employs an equal-weighted index approach rather than a market-weighted index. This unique strategy enhances exposure to smaller companies while reducing the influence of larger ones.
The fund encompasses well-known Australian companies like Coles, Commonwealth Bank, BHP, and News Corp and prominent US companies like Nike, Netflix, McDonald’s, AstraZeneca, and Amazon.
Regarding asset allocation, the fund’s investments typically fall within the following ranges:
Over the one year ending on 31 January 2021, the fund achieved a return of 2.71%. From its funded date on 15 May 2018 until 31 January 2021, the fund displayed an annualised return of 10.05% p.a.
Like the Universe Portfolio, the Origin Portfolio carries a high-risk profile, and holding this investment for a minimum period of seven years is recommended.
Spaceship Earth Portfolio
Spaceship Earth Portfolio is an actively managed fund comprising 30 to 50 carefully selected companies that positively impact society and the environment. These companies are focused on critical areas such as poverty alleviation, climate change mitigation, and quality education.
To ensure alignment with these goals, the fund employs a negative screening process, excluding companies involved in activities related to fossil fuels, animal cruelty, human rights abuse, tobacco and alcohol, gambling, firearms, controversial and conventional weapons, and nuclear power. This approach is complemented by the WWG criteria, aiding in selecting companies for inclusion.
The fund’s portfolio features reputable companies such as Atlassian, Lululemon, Shopify, Adobe, Etsy, Cloudflare, Visa, Square, and Starbucks.
Regarding asset allocation, the fund typically invests within specific ranges as follows:
No investment performance data is available because Spaceship Earth was launched in November 2020. However, the fund is categorised as high-risk, and it is recommended to maintain investments for a minimum period of seven years, similar to the previous two portfolios. By investing in the Spaceship Earth Portfolio, you can play a part in shaping a better future for both humanity and the planet.
Other Features of Spaceship Voyager
Spaceship Super
In 2017, Spaceship debuted as Spaceship Super, an innovative superannuation fund. Over time, the fund expanded its offerings to include an investment platform beyond superannuation. The underlying concept remains consistent, with the super fund aligning its values with the forward-looking vision of “where the world is going.”
As the super industry is highly competitive, Spaceship Super faces challenges due to its lack of an established track record in performance and relatively higher fees than other competitors. For those seeking a superannuation fund, exploring alternative options that offer more favourable benefits may be worthwhile.
Transparency
The Spaceship Voyager website offers transparent and comprehensive information about your investments. Unlike many managed funds that obscure their holdings, Spaceship reveals every company it invests in, providing complete transparency. Each company is listed with its performance chart, ensuring you have clear visibility into your portfolio.
While you won’t find specific allocation percentages for each company, you can quickly access performance numbers as they are listed alphabetically. Even during challenging times, like the negative returns experienced in 2022, Spaceship boldly presents the performance figures in prominent display, ensuring you clearly understand your investment’s performance.
Market Updates & Education
Periodically, Spaceship updates the changes made to their active portfolios – Universe and Earth – including the rationale behind these decisions. These updates serve as valuable insights into the team’s efforts to construct a robust and dependable portfolio on your behalf.
The provided information is genuinely helpful in gaining a deeper understanding of the investment process. It sheds light on the fluctuations experienced and emphasises the significance of focusing on long-term growth, imparting a clearer perspective on the journey of investing.
Spaceship Voyager Fee Structure
Spaceship Voyager implements a simple fee structure for its users. For those with a portfolio balance of $100 or more, a monthly fee of $2.5 is charged, encompassing all three portfolios. Each portfolio incurs a management fee calculated as a percentage of the net asset value.
The Spaceship Universe and Earth portfolios carry an annual management fee of 0.50%, while the Spaceship Origin Portfolio is charged at 0.15% per year. All fees and costs include GST and net of reduced input tax credits.
Fee Type | Spaceship Universe Portfolio | Spaceship Earth Portfolio | Spaceship Origin Portfolio |
Monthly Fee | $2.5/month | $2.5/month | $2.5/month |
Management Fee | 0.50%/year | 0.50%/year | 0.15%/year |
The management fee for each portfolio is calculated as a percentage of the net asset value (your balance). Investing an amount that can yield a return exceeding the incurred fees is generally recommended to ensure your investment remains cost-effective.
For instance, let’s consider an investor with $1000 invested in the Spaceship app, paying a management fee of 0.50% per year (Earth or Universe portfolio). The annual cost of the portfolio would amount to $35. Therefore, a desirable investment amount would generate a return of more than $29 per year, which equates to a 2.9% return for a $1000 investment.
To illustrate how fees may vary with different investment amounts such as $1000, $10,000, or $50,000, here is a breakdown of the annual costs for each portfolio based on their respective management fees:
Spaceship Universe/Earth (0.50% management fee):
- $1000 investment: $35 per year
- $10,000 investment: $350 per year
- $50,000 investment: $1750 per year
Spaceship Origin (0.15% management fee):
- $1000 investment: $15 per year
- $10,000 investment: $150 per year
- $50,000 investment: $750 per year
Please note that these figures are based on the management fees associated with each portfolio and provide an overview of the potential costs for different investment amounts.
Investment Amount | Monthly Fee (per year) | Annual Spaceship Universe Portfolio Fees | Annual Spaceship Earth Portfolio Fees | Annual Spaceship Origin Portfolio Fees |
$1,000 | $24 | $5 | $5 | $1.50 |
$10,000 | $24 | $50 | $50 | $15 |
$50,000 | $24 | $250 | $250 | $75 |
As you can see, the cost of having a portfolio in Spaceship increases with the amount you invest. The clear and favourable option here is the Origin portfolio, which boasts the lowest fees while still delivering commendable performance.
Let’s crunch the numbers for a $50,000 investment in the Universe or Earth portfolios. The percentage cost of fees for these portfolios comes to 0.548%, creeping beyond the low-cost range. In my book, anything under 0.50% per year qualifies as low cost.
On the other hand, the Origin portfolio incurs fees at a rate of only 0.198% per year, making it an obvious choice for the most economical Spaceship portfolio.
Spaceship Voyager’s Target Users
According to Spaceship’s CEO, Andrew Moore, Spaceship Voyager is a user-friendly and cost-effective solution for anyone interested in investing, especially those who may have been hesitant about it in the past.
“Spaceship Voyager provides easy access to a low-cost, app-based investment product with a global equities focus,” stated Mr Moore. He emphasised that the platform enables users to begin investing in a managed fund of 30 to 200 companies within minutes, appealing to beginners and experienced investors alike.
Mr Moore explained that the three distinct portfolios offered by Spaceship cater to different investment preferences. The Spaceship Universe Portfolio emphasises forward-thinking companies, often with a tech-oriented approach.
Meanwhile, the Spaceship Origin Portfolio invests in some of the world’s largest companies based on market capitalisation.
The latest addition to their range is the Spaceship Earth Portfolio, ideal for Australians seeking to impact both people and the planet through their investments positively.
Concerns With Spaceship Voyager
Like any investment platform, using Spaceship and investing in their select portfolios has inherent risks. Some of these risks include, but are not limited to:
- Market Risks: The Spaceship Universe portfolio, closely tied to top tech stocks in the US, is subject to market volatility and political uncertainty. Investing in high-growth tech stocks can carry significant risks.
- Stock Risks: As the Spaceship portfolios are hand-picked, investors need more flexibility to add or remove specific stocks. This lack of active management may pose risks associated with limited control over the portfolio’s composition.
- Liquidity Risks: Spaceship Voyager caters to small investors, and there may be more suitable platforms for large-scale investments. For substantial investments, traditional brokerages like CommSec may be more appropriate.
While Spaceship offers promising investment opportunities, it is crucial to be aware of these risks and consider your individual investment goals and risk tolerance before making any decisions.
How To Get Started With Spaceship Voyager
If you’re considering using Spaceship Voyager, follow these simple steps to get started:
- Download the app or sign up online to create your account.
- Choose the portfolio you wish to invest in. As an Australian resident, you must apply with proof of ID.
- Link your bank account and transfer funds for your initial investment. Afterwards, Spaceship will send you a confirmation detailing the number of units purchased, their entry price, and the issuance date.
- Continue investing by making lump sum payments whenever you prefer or setting up recurring investment top-ups.
- Whenever you need, you can withdraw your funds. Request a full or partial withdrawal, which will be processed during the current or next business day.
With these steps, you’ll be on your way to starting your investment journey with Spaceship Voyager.
Alternatives To Spaceship Voyager
As you explore different investment apps to find the best fit for your needs, consider these alternative options alongside Spaceship Voyager:
- CMC Markets: Offers commission-free trading in US, UK, and Canadian stocks, with a low $11 or 0.1% fee for Australian trades, reducing with higher trade volumes. Note that trades in other countries may incur higher fees.
- Pearler: An online trading platform tailored for long-term investors, featuring automated investment top-ups and assistance with investment goal-setting. Transaction fees begin at $9.50.
- SelfWealth: Enables investment in companies listed on ASX, NASDAQ, and NYSE with a flat fee of $9.50 per trade.
- Stake: Allows you to handpick US stocks for investment without incurring brokerage fees, but other fees may apply.
- Stockspot: Similar to Spaceship, it allows you to select a portfolio based on your desired risk level, with automated investments in ETFs (Exchange Traded Funds). Monthly fees start at $5.50.
- Superhero: Offers trading over 2,500 ASX-listed products for a flat $5 fee, with a minimum investment starting at $100.
By considering these alternatives, you can make an informed decision that aligns with your investment goals and preferences. Each platform offers unique features and fee structures, allowing you to choose the one that best suits your investment strategy.
Spaceship Voyager FAQs
What is the minimum investment?
Spaceship Voyager is ideal for beginners in investing. With a minimum deposit of $5 and the freedom to add funds as desired, it provides a fee-free trial until reaching $100. Setting up recurring investments allows for a “Set & forget” approach, making investing in the stock market easy.
Can I select more than one portfolio with Spaceship?
Spaceship now enables multiple portfolio investments, allowing you to invest in all three if desired, unlike the previous restriction of one per account. Their website offers transparency, displaying all included stocks for each option and easily digestible performance data for your research convenience.
Can I withdraw money from my Spaceship account?
To withdraw funds from your investment, use the Spaceship app to request a withdrawal. Alternatively, reach out via email at [email protected], the Help tab in the app, or the live chat on the website’s lower right corner.
How are unit prices calculated in Spaceship Voyager?
The unit price of each portfolio is determined by dividing the fund’s net asset value by the number of units in the fund. As the market value of the net assets fluctuates, the unit price will also vary. The portfolios invest in international stock markets, and the unit price for a business day is calculated after 11 am on the next business day, as those markets typically close the following morning.
How are my investment returns calculated?
Your investment return is determined by the change in the unit price of the chosen fund (Origin, Universe, or Earth) from when you acquired units to when you redeem them for cash upon withdrawal. For instance, if you invest $1,000 at a unit price of $1.00, you receive 1,000 units. If the unit price increases to $1.20 in two years, your investment would be worth $1,200, reflecting a 20% gain.
The Bottom Line
Spaceship Voyager offers new investors an excellent and cost-effective opportunity to begin their journey. With well-diversified portfolios containing high-quality assets, the platform minimises overall volatility. We highly recommend the Spaceship Voyager app for all aspiring investors looking to build their portfolios.
