Putting Robo Advisers to the Test
J Thoendell stashed this in Tech
In the world of investment advice, the machines are getting all the buzz.
Since 2009, more than 200 companies have jumped into the fledgling business of helping investors plan their portfolios online, from venture-capital-backed startups to fund giants Fidelity Investments and Vanguard Group to brokerage firms such as Charles Schwab.
These services, dubbed robo advisers, share a similar approach: using automation to select investments that meet clients’ temperament and goals. They also share a focus on low or even no fees, which has higher-priced brokers and registered advisers worried about their profit margins.
I'm surprised how different these are. I wish the WSJ would've analyzed there performance more. All of these services seem to be very hush hush about what there returns have been so far.
If they're hush hush about their returns then they're underperforming the S&P 500.
Because anyone who outperforms the S&P 500 can't shut up about it.