Tag: Digital Advice

Posted on October 1, 2019

Winner: Vanguard Personal Advisor Services
Runner-Up: Personal Capital
Honorable Mentions: Ellevest & Wealthsimple

Digital-only platforms currently lack the high degree of sophistication and customization needed for complex financial planning.  Therefore, investors looking for more personalized advice and tailored portfolio allocations still need to work with live advisors.  In order to justify the level of customization being offered, such services typically have higher investment minimums than digital-only products.

Read More…

Posted on September 27, 2019

The term “Robo-Advisor” has become commonplace to describe a new breed of digital investment management solutions. Although there is not an official definition for the term, robo-advisors share a few key characteristics. Mainly, they are automated platforms that provide investment and financial planning services. Created in response to the lack of access to traditional advisors amongst less affluent investors, robo-advisors lower the cost and ease of investing in a professionally managed, globally diversified portfolio. They do this by leveraging algorithm-driven technology in the client management and investment selection process. 

Read More…

Posted on September 24, 2019

Vanguard is piloting and is expected to soon release a new digital planning and automated-investing product called Vanguard Digital Advisor, according to a document filed with the SEC. Vanguard Digital Advisor will have a $3,000 minimum and an all-in fee of 0.20%, placing it in direct competition with providers targeting less affluent investors. In doing so, Vanguard will undercut incumbents Fidelity and JP Morgan, who both have all-in costs—management and underlying fund fees— of 0.35% and independents Wealthfront and Betterment, who have all-in costs of around 0.33% and 0.36%, respectively depending on the portfolio chosen. 

Read More…

Posted on September 21, 2019

When digital investing was first introduced, platforms quickly began accumulating assets. Digital advisors were labeled industry disruptors, as talks of fee compression, the commoditization of professional asset management, and disruption of the investment advice industry ran rampant.  Digital advice providers had the advantage of emerging during a historic multi-year bull market. Over the last four years, the market has continued to mature, adoption has spread across major financial institutions, and new consumer trends have emerged. An increasing number of companies are battling for market share and institutions have developed their own offerings.  In the race to achieve scale, the largest independent advisors continue to expand product offerings to stay a step ahead of incumbent players and maintain impressive rates of asset accumulation.  

Read More…

Posted on September 10, 2019

Winner: Fidelity Go

Runner-Up: Vanguard

Fidelity Go, followed by Vanguard, are the Best Robos from an Incumbent Financial Institution. While our analysis indicates that independent robo advice providers offer the most robust online platforms, Fidelity and Vanguard leverage their institutional might to offer a high-quality service based on proprietary funds for those who would rather entrust their money to larger, more established institutions.

Read More…

Posted on September 8, 2019

Winner: Wealthfront
Runner-Up: Personal Capital
Honorable Mention: Betterment

The best digital planning experiences continue to be offered by independent robo advisors.  Wealthfront and Personal Capital stand above their peers by offering robust planning tools to clients and prospective clients alike.  Both of these tools can handle complex, multi-goal plans that show users the interaction of all their goals in a single unified plan. These free digital planners also leverage automated account aggregation and provide users with a comprehensive view of their financial picture, regardless of where their assets are held.  

Read More…