SigFig Review and Profile

Ranked #3 for Best Overall Robo


Overview: 

SigFig started as an offshoot of Wikinvest, a Wikipedia-style resource for investors.  Launched in 2012 as a free portfolio tracking and investment advisor referral service, SigFig is now one of the original robo advisors still in operation.  Between its platform and strategic partnerships with incumbent institutions such as UBS and Wells Fargo, SigFig has grown to $485 million in assets under management, as of December 31, 2018.  

SigFig has been consistently been ranked by Backend Benchmarking as one of the top digital advice companies. SigFig stands out as one of the lowest cost providers, especially when considering that it provides live advice to any client with over $2,000 in managed assets.  Its holistic wealth management platform can aggregate outside accounts and receive automated portfolio advice. The retirement planning tool is simple to use and offers advanced modeling options for those who wish to adjust the underlying assumptions.  Currently, its platform does not support other goals, such as saving for a large purchase or a child’s education. SigFig is a great overall product for both first-time and established investors.

Pros:

  • Aggregation of all outside accounts   
  • Access to advisor with just $2,000 minimum
  • Robust retirement planning tools

Cons:

  • Only retirement goal planning
  • No fractional share investing

Platform Facts:

Last updated: 09/30/2019

Account Minimum $2,000
Advisory Fee No fee for the first $10k; 0.25% annually for balance over $10k
Average Weighted Expense Ratio0.07%
Accounts SupportedIndividual, Joint, Traditional IRA, Roth IRA, SEP IRA, Trust

Performance Figures:

Last updated: 09/30/2019


2-YR (annualized)Sharpe Ratio
Fidelity Go Taxable5.21%.40
Fidelity Go IRA4.65%.27

Digital Advice Ratings:

Access to Advisors   (3.5/5)

SigFig clients have access to a financial advisor at all service levels.  With a minimum account size of $2,000, this can be a great resource for investors who do not meet traditional wealth management minimums.  However, clients do not have access to a dedicated advisor and advisors are not required to hold a CFP or other similar designation

Financial Planning  (3.5/5)

SigFig has a great online retirement planning tool that allows users to customize assumptions and factors in assets held in outside accounts. The planning tool provides what-if scenarios and helps determine a sustainable spending amount in retirement.  Clients can include an estimate of Social Security benefits in retirement. However, the planning tool does not factor in additional retirement (i.e. pension) income.

Transparency and Conflicts  (4.5/5)

SigFig enables customers to easily compare their portfolio performance to that of various traditional benchmarks.  It provides both white papers detailing investment strategy and the detailed historical performance of its models. SigFig also shares portfolio models before a customer opens an account.  It does not invest in any proprietary products.

Features and Customer Experience  (2.5/5)

SigFig falls somewhat flat in terms of additional features.  It does not have a cash management product, invest using fractional shares, or reinvest dividends to rebalance a portfolio.  It does provide auto-rebalancing and tax loss harvesting but not provide tax-efficient asset allocation strategies or flexibility around concentrated positions and unrealized gains.  Users can aggregate outside accounts for a holistic financial picture. Customers are easily able to access their investments through an app, chat feature, and easy access to the website.

Costs   (4/5)


Management Fee*Fund Expenses*Total Cost*
Managed Account$25$7$32

*Per $10,000 invested. First $10,000 managed free with the current promotion.

SigFig stands out as one of the lowest-cost options, especially when considering that it provides live advice to any client with over $2,000 in managed assets.  SigFig is currently running a promotion where the first $10,000 is managed free. With a total cost of $32 per $1,000 invested, SigFig is in line with other low-cost digital advice providers.