The International Consumer Electronics Show (CES) -- Nummo, a personal financial management platform that empowers people to live better by helping them manage, maintain and improve their financial health, announced the release of the first ever Nummo Robo Ranking 2019, an in-depth analysis and ranking of popular robo-advisors down to the portfolio level.
The report is designed to help average investors decide whether a robo-advisor is right for them, and if so, which portfolio may be a good fit for their specific needs, especially as we enter a more challenging investing climate.
“Robo-advisors were fortunate in that they launched during a strong bull market,” said Roi Y. Tavor, co-founder and CEO, Nummo. "But, that changed in 2018 and with it the performance of these portfolios. We wanted to see which did best during their very first down year, something that has not been measured before, and which is essential information for any investor currently working with a robo-advisor or considering one.”
Nummo’s distinct methodology places less weight on past performance and takes into consideration total costs and other qualitative services that Nummo believes are essential for investors.
The report, which analyzes the period from December 1, 2017 to December 1, 2018 is the first to truly consider robo-advisors and portfolio performance in a down market.
“This is pitch perfect timing. The number of robo-advisors continues to increase, but there are variations in performance and results, making it challenging for investors to compare offerings and make better informed decisions,” said Robin Raskin, founder, Living in Digital Times (LIDT).
“As fintech and digital tools continue to evolve and become more sophisticated we need a straightforward guide like the one Nummo has now created.”
The Nummo Robo Ranking 2019 not only shows everyday Americans the differences between the firms offering these services, it also gives return-weighted rankings and portfolio level views, to help investors, at all levels, see how these portfolios performed relative to one another, and helps them decide which risk profile and investments might be right to achieve their goals.
The ranking analyzed the past performance and total costs of 300 portfolios at 17 robo-advisors. Nummo categorized portfolios based on various investment risk profiles and objectives, broken down for both retirement and taxable investment accounts. Best robo-advisors by category are as follows:
Nummo’s Top Robo Portfolios for Taxable Accounts
- Value: Wealthsimple Basic, Growth SRI Portfolio
- Growth: Wealthfront, Risk Score “4.5” Portfolio
- Balanced: SoFi Wealth, Moderate Portfolio
- Income: Ellevest Digital, A Place to Call Home Portfolio
- Conservative: SoFi Wealth, Conservative Portfolio
Nummo’s Top Robo Portfolios for Retirement Accounts
- Value: Ellevest Digital, Retirement on My Terms Portfolio
- Growth: Fidelity Go, Growth Retirement Portfolio
- Balanced: Fidelity Go, Growth with Income Retirement Portfolio
- Income: Fidelity Go, Moderate Retirement Portfolio
- Conservative: Betterment Digital, 0% Stock Retirement Portfolio
“While there are no risk-free investments, this ranking will help investors determine the characteristics of robo-advisors and portfolios that are important and meaningful to them,” said Lawrence G. Baxter, PhD, faculty director of the Global Financial Markets Center at Duke University, who serves on Nummo’s Advisory Council. “This will become even more important as there has not been an in-depth review of robo-advisors in a down market.”
The report also provides overall rankings for robo-advisor firms based on lowest total cost (Top Pick: SoFi Wealth); lowest investment minimums (Top Pick: Betterment Digital); and whether they offer portfolios for Socially Responsible Investing (SRI) (Top Pick: M1 Finance).
