Tag: Morgan Stanley

Posted on March 13, 2020

News of the novel coronavirus has dominated the 2020 news cycle. Both equity and bond markets have been extremely volatile, and the S&P 500 Index has dipped into bear market territory after dropping as much as 25% from its previous high. However, many other developments have taken place during the year. Morgan Stanley is set to acquire E*Trade in an all-stock deal valued at $13 billion. Citigroup unveiled its new robo advisor, and Goldman Sachs is expected to do the same soon. 

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Posted on March 5, 2020

  • The recent shock from the coronavirus has pushed the down S&P 500 down as much as 15%
  • The drop provided robo advisors with an opportunity to place tax-loss harvesting trades
  • Most robos exhibited similar upside and downside capture ratios, with a few exceptions
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Posted on February 25, 2020

Investing with a focus on environmental, social, and governance (ESG), also known as socially responsible investing (SRI), has increased rapidly in popularity as of late. Morningstar reported that ESG/SRI funds had a net inflow of $20.6 billion dollars in 2019. This is a 300% increase from net flows in 2018. But how is ESG/SRI performance?

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Posted on November 13, 2019

Through the end of the third quarter of 2019, the active robo portfolios we track have shown some early signs of outperformance when compared to the passive offerings from the same providers. Over the first three quarters of 2019, our active portfolios at E*Trade, Morgan Stanley, and TIAA returned 13.42%, on average. The standard offerings from the same providers returned 12.55% over the same period. For the two providers at which our active portfolios have a year of performance—Morgan Stanley and TIAA—the active options have slightly outperformed standard offerings. One factor driving this outperformance is that many of our active portfolios have a tilt towards growth stocks that have outperformed value stocks in the first three quarters of 2019.

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Posted on November 8, 2019

Consumer demand has prompted digital advisors to offer socially responsible investing (SRI) portfolio options over the past few years.  We have opened and now have eight pairs of portfolios (regular and SRI) included in our report, including six pairs with a year or more of performance reported.  The SRI robo portfolios included in our analysis are offered by Betterment, E*Trade, Ellevest, Merrill Edge, Morgan Stanley, TD Ameritrade, TIAA, and Wealthsimple.  

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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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