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.
With targeted "comfort calls" and strategically automated follow-ups, advisors who leverage their CRM systems effectively can show up when clients need them most.
The plan could offer $24,000 in relief for some taxpayers, but experts warn of consequences.
"I've seen lots of denial in this business but this GPB thing take the cake," says one industry executive.
Commentary from state-owned publication blasts sale to investor consortium as "spineless groveling," denting Hong Kong-based firm's stock.
Higher interest rates and a strong US dollar, which traditionally act as headwinds, haven't deterred market-stung investors from seeking refuge in the yellow metal.
In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'
Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies