Tag: Acorns

Posted on March 9, 2021

  • The volatility of 2020 made for an interesting case study to observe robo advisor rebalancing
  • Some accounts showed decisive rebalancing trades when the market was most fearful, displaying the merits of automatic robo advisor rebalancing
  • We estimate that select robo advisors in our study earned an additional 0.50% to 1.50% due to automatic rebalancing in 2020
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Posted on March 2, 2021

February of 2021 included a few major announcements in the robo-advice industry. Although Goldman Sachs launching Marcus Invest dominated the headlines, other notable highlights included Titan’s Series A funding, the surge in new-openings at robo advisors like Acorns, and the launch of new innovative features at places like Edelman Financial Engines. Finally, although it has yet to make headlines, the managed-account component of Prudential LINK is closing. 

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Posted on February 22, 2021

With over three million users, Acorns is the preeminent micro-investing platform that combines saving and investing in one user-friendly application. As opposed to the traditional financial advice industry, Acorns is designed for customers that are just beginning their financial lives.

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Posted on November 26, 2019

Fintech companies are continuing to disrupt the financial services industry. Over the past few years, firms have begun to offer high-yield savings accounts that pay very competitive interest rates when compared to the paltry rates savers are accustomed to seeing in their checking accounts.  Recently, the fintechs have expanded their focus to include spending accounts with debit cards. 

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Posted on November 6, 2019

Prudential, Axos Invest, and Acorns Lead YTD

Amongst our taxable robos, Prudential, Axos Invest (formerly WiseBanyan), and Acorns are the top performers YTD for performance above/below the Normalized Benchmark. All three portfolios have above-average allocations to domestic stocks, which have outperformed international equities consistently over the past three years. Axos Invest has emerged as a long-term performance leader, proving that a simple portfolio can achieve strong long-term performance. Axos’s domestic equity allocation relies almost entirely on the Vanguard Total Stock Market ETF, and their fixed income consists of high-yield and investment-grade corporate bonds. 

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Posted on May 18, 2019

Robos expand into banking and cash management, as high yield account options have proliferated among direct to-consumer fintech platforms

Wealthfront joined the growing trend of fintech companies that offer high-yield accounts designed for cash savings. Betterment announced their cash management program late last year, as did trading app Robinhood. Robinhood launched its product with an aggressive 3% interest rate, but made a regulatory miscalculation and quickly pulled their product offline to reconfigure. Although these savings vehicles often appear very similar, there can be important differences. For example, Wealthfront places funds in FDIC insured bank accounts, while Betterment’s product invests funds in a conservative fixed income portfolio.

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