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Post by jongaltiii on Aug 6, 2021 16:35:23 GMT
SoFi takes top spot with SigFig number 2. www.barrons.com/articles/best-robo-advisors-2021-51628213685Interesting that their performance was measured via 3 year return annualized through June 30th. Equities returned 16.1% and 4.3% fixed income and 11.7% overall from SoFi. If you run SPY annualized - it's 20.1% or 22% with dividends reinvested. So, one take-away is that the average person would have been better off just investing 100% into the S&P 500 or Total Market vs. robo.
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Post by yogibearbull on Aug 6, 2021 16:47:27 GMT
Interesting that the biggest by AUM, Vanguard PAS is 6/10. 2nd biggest by AUM, Schwab SIP etc, didn't make top 10. Total 43 robo-advisors were evaluated and 20 were selected. Barron's listed only 10.
Performance was benchmarked for 60-40.
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Post by jongaltiii on Aug 6, 2021 16:51:57 GMT
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Post by yogibearbull on Aug 6, 2021 18:56:18 GMT
For reference, here are August 2020 rankings:
#1-SigFig, #2-TD Ameritrade, #3-Fidelity Go, #4-Vanguard, #5-E*Trade Core, #6-Betterment, #7-Ellevest, #8-Wells Fargo, #9-Wealthsimple, #10-SoFi.
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Post by Chahta on Aug 27, 2021 20:38:18 GMT
Schwab doesn’t crack the top ten…..
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Post by yogibearbull on Aug 27, 2021 22:14:53 GMT
TD Ameritrade could have been ranked in Top 10 but new accounts cannot be opened (it is being acquired by Schwab), so it was excluded.
Schwab is under SEC investigation for PR on its robo-advisor SIP, so it was excluded too. It is #2 robo-advisor by AUM.
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Post by steadyeddy on Aug 27, 2021 23:55:56 GMT
TD Ameritrade could have been ranked in Top 10 but new accounts cannot be opened (it is being acquired by Schwab), so it was excluded. Schwab is under SEC investigation for PR on its robo-advisor SIP, so it was excluded too. It is #2 robo-advisor by AUM. yogibearbull, what is the Schwab investigation about? Any more details? thanks
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Post by yogibearbull on Aug 28, 2021 0:42:55 GMT
steadyeddy , the SEC is questioning the use of term "free" or "no-fee" for Schwab SIP when there are hidden costs based on required high cash balances of SIP (that are kept in Schwab Bank). The general arrangement was approved by the SEC but the SEC now feels that Schwab overdid the "free or no-fee" angle and its competitors may have complained too. Barron's and others have done related pieces. Schwab has agreed to pay a fine, may change its PR materials for SIP, and also has another flat-fee (not % of assets) robo-advisor variation.
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Post by Chahta on Aug 28, 2021 0:45:46 GMT
Interesting that the guy trying to be my “advisor” at Schwab asked to take look at robo. Not my style.
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Post by steadyeddy on Aug 28, 2021 12:17:15 GMT
steadyeddy , the SEC is questioning the use of term "free" or "no-fee" for Schwab SIP when there are hidden costs based on required high cash balances of SIP (that are kept in Schwab Bank). The general arrangement was approved by the SEC but the SEC now feels that Schwab overdid the "free or no-fee" angle and its competitors may have complained too. Barron's and others have done related pieces. Schwab has agreed to pay a fine, may change its PR materials for SIP, and also has another flat-fee (not % of assets) robo-advisor variation. yogibearbull , thanks for the elaboration. Do you know what they call the flat-fee variation of their robo-advisor? Does that have no cash allocation? Are you thinking of SIP Premium, which has a monthly flat fee of $30 to provide CFP access?
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Post by yogibearbull on Aug 28, 2021 13:49:36 GMT
steadyeddy , yes, Schwab SIP Premium is its flat-fee robo-advisor for $300 initial plus $30/mo regardless of account size. Compared to other robo-advisors that charge 0.30-0.35%, the breakeven for Schwab SIP Premium may be $120K-150K. I also looked at Schwab website and I didn't notice any significant change in its PR for SIP. It still says that there are no advisory fees (literally true) and that it keep extra cash in Schwab Bank for customers' benefit (well, Schwab gets more benefits from it and kicks some of that back from bank to brokerage side with prior SEC approval). There is a detailed web-note that opens on a click but is that all the SEC accoumplished? www.schwab.com/intelligent-portfolios
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Post by steadyeddy on Aug 28, 2021 18:05:02 GMT
steadyeddy , yes, Schwab SIP Premium is its flat-fee robo-advisor for $300 initial plus $30/mo regardless of account size. Compared to other robo-advisors that charge 0.30-0.35%, the breakeven for Schwab SIP Premium may be $120K-150K. I also looked at Schwab website and I didn't notice any significant change in its PR for SIP. It still says that there are no advisory fees (literally true) and that it keep extra cash in Schwab Bank for customers' benefit (well, Schwab gets more benefits from it and kicks some of that back from bank to brokerage side with prior SEC approval). There is a detailed web-note that opens on a click but is that all the SEC accoumplished? www.schwab.com/intelligent-portfolios yogibearbull , yea but as you know the flat fee is for CFP access more so than robo itself. The underlying portfolios are still SIP with the same level of cash allocation. And, the rub is, each account will have its own robo allocation - the Premium service does not rebalance or optimize across accounts. I do have SIP in a taxable account and I am very happy with it. I haven't found the need for Premium yet. Thanks again.
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