Tag: Digital Advice

The Robo Ranking™: Best Overall Robo

Posted on September 5, 2019

Winner: Fidelity Go
Runner-Up: Vanguard Personal Advisor Services
Honorable Mention: SigFig

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The Robo Ranking™: Best Robo for Performance at a Low Cost

Posted on September 5, 2019

Winner: Fidelity Go
Runner-Up: WiseBanyan

We awarded the Best Robo for Performance at a Low Cost to the top-performing robos over the prior two-year period: Fidelity Go and WiseBanyan.  

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Q2 2019 – Taxable Accounts Commentary

Posted on September 4, 2019

After faltering at the end of last year, U.S. and global markets have returned to a period of strong growth in 2019, with the S&P 500 returning 4.30% in the second quarter.  While this was considerably less than the first quarter’s return of 13.65%, due largely in part to markets rebounding sharply following a December selloff, the combined return marks the best first half-year performance for domestic markets since 1997.  Many trends from the first quarter continued through the second quarter, as mid-cap continued its outperformance and growth once again outperformed value. Growth has experienced a multi-year dominance, outperforming value YTD, as well as over the trailing one-, two-, and three-year periods.

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Robo News: April 2019

Posted on May 30, 2019

SoFi has been making headlines this month, as they have recently introduced two proprietary ETFs.  The funds are as follows:

  • SoFi Select 500 (SFY) tracks the performance of 500 of the largest U.S.-listed companies weighted based on a proprietary mix of their market capitalization and fundamental factors
  • SoFi Next 500 (SFYX) tracks the performance of the 500 smallest of the 1,000 largest U.S.-listed companies weighted based on a proprietary mix of their market capitalization and fundamental factors.

SoFi continues to diversify their offerings, as they have also recently announced a partnership with two fintech insurance firms.  SoFi now plans to offer homeowners and renters insurance through Lemonade and auto insurance through Root. This has been a busy month for Sofi, as they are rumored to be working on an additional round of funding, estimated as $500M.  This funding round, reportedly led by the Qatar Investment Authority, is expected to be at a similar valuation to their last round in February 2017.

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Robo Regulatory Missteps and B2B Industry Growth

Posted on May 28, 2019

“The SEC announced in December that it reached a settlement agreement with two robo advice providers.”

As robo advice grows rapidly and reaches widespread adoption, they are also catching the attention of regulators.  The first SEC action against providers occurred at the end of 2018, as the SEC announced in December that it reached a settlement agreement with two robo advice providers. The SEC order stated that Wealthfront claimed to be monitoring outside accounts for wash sales related to their tax-loss harvesting product when, in fact, they were not. The SEC announcement reported that 31% of accounts enrolled in tax-loss harvesting experienced a wash sale in the more than three years that Wealthfront made this claim. Other findings included re-tweeting prohibited client testimonials and paying bloggers for client referrals without the proper disclosures and documentation.

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Industry Insights: Investing at Wealthsimple

Posted on May 26, 2019

We recently spoke with Dave Nugent, Head of Investments and part of the founding team at Wealthsimple, a Canada-based robo that has expanded to the U.S. and U.K. markets. Dave provided us with great insight into who the typical Wealthsimple client is and where he sees the future of digital advice.

“Over the past two years, we have seen a trend in the robo advice industry away from digital-only offerings toward offering access to live advisors at some level of service”

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