Tag: Performance

Posted on September 6, 2019

In recent years, socially responsible investing (SRI) – also commonly categorized as environmental, social, and governance investing (ESG) – has gained popularity with retail investors and investment managers alike.  Between 2016 and 2018, assets invested in ESG-themed mutual funds grew 34%, while assets in ESG-themed ETF funds more than doubled. Driven by consumer demand, a natural expansion has been undertaken by digital advisors to offer separate SRI portfolio options.  Within the past few years we have opened and funded SRI accounts at each of the providers that offer sustainable investing options. With a year of performance to review, we have assessed the risk and return statistics of SRI portfolios offered compared to their standard offerings.  While today’s focus is on performance, we will publish a full report on the composition of SRI portfolios, including costs and sustainability scores, later this month.

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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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Posted on June 14, 2018

Included in The Robo Report’s quarterly report on the digital advice industry is performance data on real accounts opened by BackEnd Benchmarking. Providing performance data allows for comparison across different digital advice platforms and helps investors make informed decisions when selecting a robo-advice product.

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Posted on February 14, 2018

Here at BackEnd Benchmarking, we have recently released the fourth-quarter 2017 edition of The Robo Report. In this report we took an in-depth look at two-year returns of seven different portfolios with a full two years’ worth of data. The fourth quarter of 2017 was a strong finish to a strong year in the equity markets and for the digital advice industry as a whole. Since the end of the year, market turmoil has shaken equity markets and tested the systems of robo-advice providers. Despite some technical issues experienced by some robos during recent tumultuous market days, digital advice is expanding across the financial services landscape. Interviews this quarter with TD Ameritrade, Merrill Edge and Schwab gave us insight into where these products are fitting in among client bases, and we are starting to get a clearer picture of where digital advice products are gaining the most traction.

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Posted on December 2, 2017

Digital advice is gaining traction both among individual investors and advisory firms. Although the concept of a robo-adviser was pioneered by start-ups like Betterment and Wealthfront, the technology is being adopted across the advice marketplace. Increasingly, individual investors will come into contact with digital advice solutions as they search for advice providers. For those interested in a low-cost advice and investment selection solution, there are no longer just a few firms from which to choose. Over the last year alone T. Rowe Price, Zacks Advantage, TIAA, TD Ameritrade, Merrill Lynch and Wells Fargo have all released digital advice products. Additionally, LPL and Cetera Financial Group both recently made a robo-advice product available to their advisers to market to end clients. As choices in providers expand, the selection process for investors increases in complexity.

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Posted on September 7, 2017

When robo-advisers first appeared seven years ago, investors and financial advisers were unsure if this was just the latest investment fad or here to stay. Since that time, it has become apparent that they will be a permanent fixture in the investment advice industry. Starting early in the evolution of these investment products, we opened and funded accounts at the most prominent robo-advisers in order to collect unbiased data. We now publish our findings in The Robo Report to help investors understand the robo-advisory landscape.

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