Robo advisors are all the rage the these days, promising access to wealth management tools to the masses that was previously only available to an elite few.
With so many robo advisors out there in the market answer the question “which is the best robo-advisor in the market” can be quite difficult.
Nummo, a financial management platform that claims to be the only one to provide actual performance of over 300 robo-advisors, has released its 2019 ranking of which is the best robo advisor.
All portfolio categories – Conservative, Income, Balanced, Growth and Value – have seen remarkable moves during one of the most volatile markets in more than a decade.
The results show some of the biggest names underperforming what has been a challenging period for any investor, human or machine.
Only a few firms topped the year-to-date performance of the S&P 500 Index, which was up 14.06% as of May 17. The majority of robo-advisors, including those from Charles Schwab, Betterment, SigFig, Morgan Stanley, AssetBuilder and SoFi Wealth did not make the top three ranking in any portfolio category.
| PORTFOLIO CATEGORIES | VALUE | GROWTH | BALANCED | INCOME | CONSERVATIVE |
|---|---|---|---|---|---|
| First Place | Stash Invest (Clean & Green) | M1 Finance (Moderately Aggressive) | Acorns (Moderate) | Sogo Marketriders (Moderate Income – Starter) | Sogo Marketriders (Diversified Income – Starter) |
| Second Place | M1 Finance (Responsible Investing) | Fidelity (Growth) | Fidelity (Growth with Income) | Acorns (Moderately Conservative) | Sogo Marketriders (High Income – Starter) |
| Third Place | Stash Invest (Blue Chips) | TIAA (Moderately Aggressive) | Sogo Marketriders (Balanced Growth – Starter) | Wealthfront (Risk Score 2.0) | TIAA (Conservative) |
2019 has seen the appearance of many new names among better known ones atop the five portfolio categories. Looking at just performance, without factoring in cost or any qualitative factors as Nummo does in its annual survey, results show names like Sogo Marketriders, Stash Investments, M1 Finance, Fidelity, Acorns and Wealthfront leading the industry year-to-date.
TIAA, one of the largest investment managers ranked within the top 5 in the Growth, Balanced and Conservative categories.
“2019 has been such a remarkable story in terms of volatility that we wanted to see how robo-advisors had performed YTD. The results give us a very interesting picture and show how challenging such shifting market conditions can be,”
said Roi Tavor, CEO and co-founder of Nummo.
Download a full copy of Nummo’s comprehensive annual 2018 Robo-Advisor Ranking Report here: www.nummo.com/robo-ranking/robo-ranking-01-2019.pdf.
