5 reasons why the RCBC US Equity Index Feeder Fund should be part of your financial essentials


RCBC US Equity Index Feeder Fund

Are you an experienced investor who knows the risks that come with higher rewards? Do you plan to keep your funds in your investment for at least three years? More importantly, are you ready to invest in Google, Facebook and Netflix?

It looks like the RCBC US Equity Index Feeder Fund (RUEIF) is the right investment product for you. Here are five reasons to explore this new offering from RCBC and why it should be included in your financial essentials. 

1. You’re investing in the largest companies in the US

The RUEIF invests at least 90% of its funds in a Target Fund called BlackRock Fund Advisors’ (BFA) iShares Core S&P 500 Exchange Traded Fund (IVV).

Since the Target Fund tracks the S&P 500 Index performance, this measures the overall performance of the US stock market. It means that you can indirectly invest in the largest US companies with only a USD 200 investment. 

For those who are not familiar, BlackRock is the largest asset manager in the world, with assets under management (AUM) of USD 8.68 trillion as of the end of 2020. 

So if you want to invest in S&P 500 index companies like Microsoft, Apple, Amazon, Tesla, Facebook, Visa, and Netflix, then the RUEIF is definitely worth exploring. 

2. Investing in the RUEIF is affordable

The RUEIF is one of the few USD Feeder Funds in the Philippines offering the lowest minimum initial investment. For just USD 200, you can already invest and access the US equity market. 

“What if I have a few hundred dollars more to invest?” No problem. You can make a minimum additional investment of USD 100. The maintaining investment is USD 200. 

Moreover, there’s no holding period, which means you can redeem any time and the settlement date is also shorter. 

When it comes to fees, the trust fee is at 0.75% per annum based on Net Asset Value (on top of the 0.03% management fee from BlackRock Fund Advisors and other special fees which are allowed under current regulations).

3. You can easily invest in RUEIF online

If you want to invest in RUEIF, you can do so easily and conveniently online, just log in to rcbconlinebanking.com and then click “Invest in UITF” button and “Enroll a new UITF account”. 

You can also install the RCBC Mobile Banking App if you want to invest, view or redeem in RUEIF using your mobile phone. And for those who do not have an RCBC Online Banking account, you can also easily open one all online.

Everything that needs to be submitted for the account opening can be done online such as the Client Suitability Assessment (CSA), Risk Disclosure Statement (RDS), and Participating Trust Agreement (PTA), as well as an additional risk disclosure that details the risks of the Target Fund. 

4. The yield potential with stocks is higher

Though investing in stocks may come with risks, it also has its perks. Historically, long-term investors who deal with the volatility of the stock market have had higher success rate compared to short-term investors. This means that if you are a long-term investor, you maximize the time value of your money. The more time you give your money to work for you, the more your money will make for you.

5. It’s a good way to diversify your investment portfolio 

It is interesting to note that the US stock market, using the S&P500 Index as benchmark, increased by 106% over the past 5 years while the Philippine stock market has contracted by 10%. This illustrates that there are benefits to diversifying your investment portfolio to include global assets.

With RUEIF, you have easy access to globally diversified investments with minimum investment amount requirements.

Investing in UITFs from RCBC is a good way to instantly diversify your portfolio since you get access to all the underlying investments of a Fund. But if you’re ready to take your investment game to the next level, investing in the RCBC US Equity Index Feeder Fund can be an easy and affordable entry point to global markets. 

To know more about the RCBC US Equity Index Feeder Fund and other RCBC Trust Products, get in touch with any RCBC Trust Sales Personnel or visit rcbc.com/uitf for more information.