Tag: Betterment

Posted on June 12, 2020

In the first quarter of 2020, Backend Benchmarking had the opportunity to see how the robo-advice landscape reacted during a major sell-off. From a performance perspective, our Q1 Robo Report noted that our robo accounts generally declined in proportion to their equity percentage, albeit with some interesting exceptions. However, there has been an unexpected surge in new-account openings in robos even in spite of the market decline. 

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Posted on June 4, 2020

Overview:

The robo-advice industry has led the way in changing the financial services industry to benefit the average investor. Robo-advice attributes like accessibility, low cost, and low minimums have dramatically impacted the investment management space and are now branching out to other areas including cash management, banking services, and retirement income solutions. 

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Posted on June 3, 2020

The Emergence and Spread of Robo Advice

Robo advice as we know it today first emerged into the mainstream in 2008 when Betterment and Wealthfront were founded and later launched digitally managed portfolios with low fees and minimums. In 2015, Schwab launched its Schwab Intelligent Portfolios and Vanguard launched its Personal Advisor Services. Since then, robo-advice products have become ubiquitous among financial institutions. Here, we intend to take a look back at the industry, how its evolution is impacting individual investors, and what investors can expect next from these innovative products.

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Posted on May 27, 2020

The first quarter of 2020 was a volatile time for markets as they dealt with the impact of COVID-19. Backend Benchmarking tracks various subsets of robo-advice offerings to get a better picture of what firms offer. One such subset is active portfolios. We have active portfolios opened at E*Trade, Morgan Stanley, Betterment,  TIAA, and Titan Invest. Titan is the only one of these that does not have a non-active counterpart. It must be noted that Betterment does not consider their portfolio to be a true active portfolio. Instead, they consider it “smart beta” by employing Goldman Sachs active beta funds. 

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Posted on May 1, 2020

  • SRI portfolios remain popular and continue to perform well
  • Wealthsimple SRI is the top 1- and 2-year total portfolio performer
  • Morgan Stanley SRI leads 1-year equity performance
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