As more investors recognise the failure of active investors to beat benchmark indices like the S&P 500 Index, automated investing with robo-advisors has become more popular.
Instead of learning how to buy US stocks in the UAE, more investors are willing to automate investment into a diversified personalised portfolio that matches their time horizon, investment goals, and risk tolerance.
Automated investment apps have also become more popular in the UAE, with many fintech platforms offering UAE investors the advantages of passive investing (lower cost, lower risk, cost-effective diversification, etc.).
But with many automated investment apps flooding the market, you need to know the top ones that are worth your money. In this article, we consider five of the best automated investment apps for UAE residents.
1. Sarwa: Best for comprehensive access to automated investing
Sarwa is a CMA-regulated company offering a range of products to help UAE residents build wealth.
Its Sarwa Invest product is a fully passive, automated investment platform where experts create diversified, personalised portfolios for investors with different risk profiles and investment goals.
Key advantages
- Multiple portfolios: You can choose between the conventional, Halal, and socially responsible investment (SRI) portfolios, depending on your investment goals.
- Access to cryptocurrencies: If you choose the conventional and SRI portfolios, there is an option to add cryptocurrencies to your portfolio.
- Low account minimum: The conventional and Halal portfolios have a $500 minimum account balance requirement. It’s $2,500 for SRI portfolios.
- Low and tiered investment fees: Management fees range from 0.4% to 0.85%, depending on the account type. The more you invest, the lower the fees you pay.
- Automated dividend reinvesting: If you so choose, Sarwa will automatically reinvest your dividends so you can better enjoy the ‘magic’ of compounding.
- Automated rebalancing: Sarwa also automatically rebalances your portfolio to stick to the ideal allocation formula that makes your portfolio efficient.
- Educational resources: Sarwa provides educational resources that will help you become a better investor and understand the principles guiding modern portfolio management.
Ideal for
Sarwa is ideal for passive investors who want the flexibility to explore different portfolio types.
2. eToro: Best for a thematic approach to automated investing
eToro is a global investment platform that operates in the UAE.
It supports passive investing through its Smart Portfolios product. Smart Portfolios are long-term, passively managed investment portfolios that centre around particular themes and strategies.
Key advantages
- Low entry: All Smart Portfolios have a low minimum investment requirement of $500. Also, they do not charge any portfolio management fees.
- Consistent rebalancing: eToro’s investment team constantly rebalances the portfolio to adapt to changes in market conditions.
- Dividend reinvesting: Dividends are added to the cash balance and then reinvested when rebalancing takes place.
- Multiple Smart Portfolios: eToro has up to 63 different portfolios that investors can choose from.
Ideal for
eToro is not a true robo-advisor as they do not conduct risk profiling or provide personalised portfolios. Therefore, it is ideal for investors who already have a grasp of who they are and what they need.
3. Wahed Invest: Best for Sharia-compliant automated investing
Wahed Invest is a Sharia-compliant robo-advisor that is licensed to operate in the UAE. It offers passively managed portfolios to investors across the globe.
Key advantages
- Sharia-compliant portfolios: Wahed Invest’s Shariah Review Bureau reviews every investment to ensure it complies with Shariah.
- Personalised portfolios: Wahed Invest profiles all new investors and offers portfolios that match their risk tolerance.
- Low entry: The minimum account balance requirement is $500.
- Diversified portfolios: Wahed Invest offers access to stocks, real estate, gold, and bonds across global markets.
Ideal for
Wahed Invest is ideal for investors who are interested in exploring only Sharia-compliant passive investing.
4. StashAway: Best for investors with very low investment capital
StashAway is a global investment platform with an operational arm in the UAE.
Its core product is a roboadvisory platform where experts create diversified portfolios that help users build long-term wealth.
Key advantages
- No minimum account balance requirement: Users can get started with as little or as much as they have.
- Shariah-compliant portfolios: Investors can choose between conventional and Shariah-compliant portfolios.
- Thematic portfolios: Users can also select from expertly built portfolios created around emerging themes like AI.
- Constant rebalancing: StashAway keep its passive portfolios efficient with regular rebalancing.
Ideal for
StashAway is ideal for investors with low investment capital.
5. WIO Invest: Best for combining personal banking with automated investing
WIO Invest is the investment arm of WIO Bank, a digital native bank in the UAE. Users can grow long-term wealth with expertly built portfolios that adhere to proven investment strategies.
Key advantages
- Multiple portfolios: WIO Invest users can choose from goal-based, thematic, and AI-driven portfolios.
- Integrated personal finance: WIO Invest is a product available through the WIO app, which contains other personal finance products.
- Access to global markets: Users gain access to some of the best investments for millennials across global financial markets.
Ideal for
WIO Invest is ideal for investors who want to manage all their personal finances from a single platform.
