TD Ameritrade runs into tax-loss harvesting hiccup, leaving them heavily allocated to cash and significantly dragging down their performance
MARTINSVILLE, NJ / ACCESSWIRE / February 14, 2019 / The new 10th Edition of The Robo Report™ by Backend Benchmarking covering the fourth quarter of 2018 has been published. This is the first publication of three-year returns on seven of the most prominent robo advisors as the company continues to bring transparency to robo investing.
''As more time goes by and we have a longer track record of robo advisors performance and characteristics, we get a better picture of how they behave under different market conditions, and over a longer period of time,'' said Ken Schapiro, Founder of Backend Benchmarking, the publisher of The Robo Report™.
''We have also made some changes to the Normalized Benchmark this quarter. We have made the benchmark dynamic, meaning the benchmark shifts its weights to match the portfolio's fixed income-to-equity ratio if we detect a strategy shift in the portfolio it is being measured against.
''Also, we have simulated a 0.30% management fee in the benchmark to represent the costs of a professionally managed robo portfolios,'' said David Goldstone, Head of Research for The Robo Report, which has grown to a comprehensive data packed 33 pages.
Highlights of the fourth Quarter 2018 Robo Report(TM):
- TD Ameritrade runs into tax-loss harvesting hiccup, leaving them heavily allocated to cash and significantly dragging down their performance.
- IQvestment (formerly known as tZERO Advisors) takes a significant hit in performance in Q4 compared to other robo advisors.
- Fidelity Go continues to perform well in the one- and two-year time frame.
- In depth interview with Wealth Simple Head of Investments Dave Nugent
The Report has three years of performance return numbers for robo advisors at Betterment, SigFig, Schwab, Vanguard, Personal Capital, WiseBanyan, and Acorns. In addition, the Report covers Ally Financial, Capital One, Ellevest, ETrade, Fidelity Go, FutureAdvisor, Interactive Brokers, Merrill Edge, Morgan Stanley, SoFi, TD Ameritrade, TIAA, T. Rowe Price, IQvestment (formerly known as tZERO Advisors), Wealthfront, WealthSimple, Wells Fargo, UBS, United Income, USAA, US Bank and Zacks Advantage.
This report has first returns data from US Bank and Interactive Brokers, while also adding a TD Ameritrade socially responsible investing (SRI) strategy and
active strategies from Morgan Stanley and TIAA. Next quarter, the company will be publishing first returns data on an additional eleven accounts, including offerings from BBVA Compass, Fifth Third Bank, Citizens Financial, Edelman Financial, and Honest Dollar, as well as products from John Hancock and Prudential.
According to Mr. Goldstone, next quarter's report will also include portfolios that follow SRI and active strategies from ETrade, a Merrill Edge Active SRI strategy, and a portfolio from SRI robo Swell Investing.
Alongside reporting performance, The Robo Report™ includes a discussion on the trends during the quarter that drove performance as well as a news section covering recent industry events.
The Report ranks the top three robos by performance in Equity, Fixed Income and Total Portfolio as well as historical performance since each accounts' inception.
To get a first-hand understanding of how the providers operate and invest, Backend Benchmarking opened and funded portfolios seeking a similar asset allocation to allow for comparison. The knowledge of the underlying assets held helps to understand the structure of the portfolio, the risk, and what is driving performance.
This report represents Backend Benchmarking's research, analysis, and opinion only; the period tested was short in duration and may not provide a meaningful analysis. There can be no assurance that the performance trend demonstrated by robos vs. indices during the short period will continue.
The Robo Report™ is available for free at https://theroboreport.com/ Follow the Report on Twitter @theroboreport.
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SOURCE: Backend Benchmarking