Tag: Schwab

Posted on November 7, 2019

Schwab and Vanguard are the two dominant platforms in the digital advice industry.  Leveraging their clout as established investment managers, Schwab and Vanguard have amassed $43 billion and $140 billion, respectively, in assets under management on their digital platforms.  Below is a comprehensive comparison of the two services, including facts, features, and historical performance based on accounts we have open at both providers.

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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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Posted on November 1, 2019

Top Performers:

2-Year Trailing Top Performers  (annualized):

  • Fidelity Go IRA
  • T. Rowe Price IRA
  • Axos Invest IRA
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Posted on October 31, 2019

JP Morgan Enters the Fray, Vanguard Expands

All hands are on deck for automated investing. Shortly after closing Finn, its millennial-focused banking app, JP Morgan launched You Invest Portfolios—its new digital advisor with a minimum account balance of $2,500 and 0.35% advisory fee. With JP Morgan’s entrance into the digital advice space, there are only a few large U.S. banks that have yet to offer or buy a stake in a digital advisor. 

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Posted on October 4, 2019

Schwab Cuts Commissions, TD Ameritrade Follows

Decades ago, Schwab led the revolution of reducing commissions on trades. High-tech startups, led by Robinhood, are now eliminating commissions altogether. Interactive Brokers slashed commissions on U.S. stocks and ETFs to zero last week. Schwab has responded in kind by announcing that it will cut all commissions on trades of U.S. stocks, ETFs, and options on October 7. TD Ameritrade and ETrade have both followed suit and cut the same commissions. The move rattled the prices of these companies’ shares. Schwab’s and Interactive Brokers’ share prices both fell over 9%, and TD Ameritrade’s, which relies more heavily on commission revenue, fell 25.8%. ETrade, who has kept commissions steady, saw its share price drop 17% on the day of the Schwab announcement.

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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. 

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