In a year that saw historic interest rates hikes and one of the worst performances ever for traditional portfolios, three robo-advisors shined.
Out of 42 accounts tracked from 27 different robo-advisors, Fidelity Go, Wealthfront and Ellevest performed the best, relative to a benchmark, over the one-year trailing period that ended March 31, according to the latest “Robo Report” from Condor Capital Wealth Management.
Fidelity Go delivered the best equity portfolio thanks to a notable mega-cap and large-cap bias, the researchers found. The robo had an average equity market cap of $84 billion compared to an average of $64 billion at the other robos studied, David Goldstone, manager of investment research at Condor, said in a statement.
“This was important as the Russell 2000 Index, a U.S. small-cap index, returned −11.63% for the 1-year trailing period, whereas the S&P 500 returned −7.75% for the period,” Goldstone reported.
Meanwhile, Wealthfront’s equity allocation was boosted by a dedicated exposure to energy stocks (VDE) and the Schwab Dividend ETF, which both outperformed the S&P 500 index.
Ellevest, the women-targeted robo-advisor launched by Sallie Krawcheck that raised $53 million of new funding in 2022, also performed well because of a modest allocation to domestic stocks, Condor reported. A larger allocation to non-U.S. equities compared to other robos studied helped Ellevest outperform.
When it came to fixed income, Zacks Advantage performed the best by holding bonds for a shorter duration than other robos studied, Goldstone said.
“For the one-year fixed-income numbers, Zacks is one of the most active robo advisors we track and was impressive in this regard, as it held a duration of just four [years],” Goldstone said.
Over a three-year period, Wealthfront’s portfolio performed the best, followed by Charles Schwab’s “Domestic Focus” portfolio and Zacks Advantage.
Wealthfront was also the top performer across a five-year period.
“The story for our Wealthfront portfolio is quite clear: The robo advisor’s bold allocation to energy stocks was a boon to investors,” Thomas Leahy, a financial advisor at Condor, said in a statement.
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.
Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
