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What is Daffy's investment philosophy?
What is Daffy's investment philosophy?
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Written by Support
Updated over a week ago

At Daffy, we know that every penny that you contribute to your fund counts. Daffy offers a total of 14 different portfolios across four different categories: Conservative, Standard, ESG, and Crypto.

Our Conservative, Standard, and ESG portfolios are made up of high-quality, low-cost index funds managed by some of the most trustworthy providers in the industry: Vanguard, Schwab, and BlackRock. Additionally, we offer Crypto portfolios that hold pure crypto coins at Coinbase or a diversified crypto index from Bitwise. For each type of portfolio, we provide several options that vary in terms of risk and volatility, so you can select the portfolio that best matches your own risk tolerance and giving goal and timeline.

Unlike many donor-advised funds, we don’t charge an additional management fee for these investment portfolios.

Conservative

Standard

Conservative portfolios are the best fit for members whose priority is preserving capital over investment returns. These portfolios do not hold equities or crypto, and are comprised solely of cash or inflation-protected bonds. There is no expense ratio for the all-cash portfolio, and the expense ratio for the bond portfolios is very low, ranging between 0.04% to 0.05%.

Standard portfolios are composed of low-cost and globally diversified index funds provided by Vanguard, one of the most trustworthy providers in the industry. Each portfolio is comprised of a balanced mix of equities and bonds, with separate funds for US and International exposure. Depending on your goals and risk tolerance, you can select from balanced, growth, and aggressive options. The average expense ratio for the ETFs in these portfolios is exceptionally low at 0.05%.

Environmental, Social, and Governance

Crypto

ESG portfolios are composed of low-cost globally diversified funds that are selected not only for traditional measures of risk and return, but also for environmental, social, and corporate governance (ESG) standards by BlackRock. Daffy has selected funds from iShares by BlackRock for their low-cost and superb reputation. Each portfolio is comprised of a balanced mix of equities and bonds, with separate funds for US and International exposure. You can select from conservative, moderate, and aggressive options. The average expense ratio for the ETFs in these portfolios is very low, ranging between 0.14% to 0.17%.

Crypto portfolios are designed for members looking for exposure to crypto in their investments. Daffy has selected Bitwise Investments for their unique crypto index funds for members looking for a diversified portfolio, and Coinbase for direct access to Bitcoin and Ethereum. Daffy offers three options: a diversified option composed of stocks, bonds, and crypto, as well as two pure crypto portfolios, one with Bitcoin & Ethereum, and one with just Bitcoin. The average expense ratio for the diversified portfolio is 0.17%. While there are no expense ratios for direct investments in Bitcoin & Ethereum, the portfolios do include trading costs for these assets.

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