Checking In On The Robo Advisors With Year-to-Date Results -- Frank Zorrilla's Blogspot

davfor

"We all know how miserable it's been recently for some hedge funds, now it's time to look at some Robo Advisors. These portfolios vary depending on the needs and risk tolerance of the investor, but you can get a feel for what the returns might look like for a conservative or moderate investor. I'm using the allocation of a recent Wall Street Journal article."



The year-to-date results for the first three of these are:

"Schwab Intelligent Portfolios.... this particular mix is down 5.16%.
Betterment's mix is....down 3.66%.
Wealthfront ...this particular mix is down 5.15% year to date."

See: Frank Zorilla and WSJ

little5bee

@davfor Thanks! I was wondering how the Schwab robo-advisor was doing.

davfor

little5bee said:

@davfor Thanks! I was wondering how the Schwab robo-advisor was doing.

You're welcome. I was wondering about that too......

Joe

Interesting how different these portfolio allocations are. I noted the same thing some years ago when I decided to get rid of investment managers and run my own portfolio. I provided the same information to a number of managers (my age, investment horizon, risk tolerance, goals, etc.) and the recommended allocations were all over the map. I concluded that I could guess about the future and the appropriate allocations about as well as anybody else and didn't need to be paying an advisor to do it for me. Been on my own around 10 years now and doing fine without any advice.

catch22

Howdy @Joe

You noted: "I provided the same information to a number of managers (my age, investment horizon, risk tolerance, goals, etc.) and the recommended allocations were all over the map. I concluded that I could guess about the future and the appropriate allocations about as well as anybody else and didn't need to be paying an advisor to do it for me. Been on my own around 10 years now and doing fine without any advice."

Wonderful overview. Pretty much says it all for many here at MFO.

Moderate allocation per M*, for what value this list holds, has a large YTD range.

Take care,
Catch

MikeM

I invested a third of my IRA in the Schwab intelligent portfolio at about a 60/40 mix. I invested in June of this year. I input the portfolio into M*. As of today the Schwab portfolio YTD is down -2.85%. Not sure when the data you show is from, likely end of 3rd quarter.

The big losers were, large company EM equity -15%, EM bonds -13%, diversified EM equity -12% and gold -10%. Those 4 investments represent 5%, 5%, 3% and 5% of the total respectively.

davfor

MikeM said:

I invested a third of my IRA in the Schwab intelligent portfolio at about a 60/40 mix. I invested in June of this year. I input the portfolio into M*. As of today the Schwab portfolio YTD is down -2.85%. Not sure when the data you show is from, likely end of 3rd quarter.

Looking at the data Zorilla included in the table at the link I posted, it appears that data runs through 11/13. But, in checking Zorilla's data, it indicates -- as an example -- that the share price change for BNDX is at -0.32% through closing on 11/13. But, in checking at M*, that site indicates the total return on BNDX is at 0.88% through 11/13. So, there is a difference of 1.20% related to reinvesting the dividends for BNDX. Zorilla's returns appear to only reflect changes in share prices. So, they understate the total returns through 11/13 (assuming dividends are reinvested in the same ETFs with no rebalancing).