Robo-Advisors are on the rise. I have been using Personal Capital for over a year now. But, I wanted to see if Hedgeable, Wealthfront, Betterment would perform better. So, I decided to run my own experiment with real money. Here’s what I’m planning to do with this experiment:
- Open a new account with Hedgeable, Wealthfront, Betterment
- Publish the monthly performance (increase or decrease)
- Share the Asset classes
- Sep 2016
Performance and Comparision Table
Here’s the performance table to compare the investments at Robo-Advisor’s.
|Robo Advisor||YTD – 2016||Sep||Oct||Nov||Dec|
- Personal Capital (2015) – $10,000+
- Hedgeable – $10,000+
- Wealthfront – $5,000
- Betterment (Yet to Open)
We use Personal Capital for tracking our day to day spending and expenses to stay within our budget (and it rarely happens). We used Mint for several years, but switched to Personal Capital due to its simplicity and clean interface.
- Total Securities Invested: About 82
- It took about 11 days t from new application to Investment.
- Total Securities Invested: 11 (10 Equities + 1 Aggregate Bond)
- I’m waiting for the account to be funded and invested as of Sep 28, 2016
- Tax Loss Harvesting or Tax Optimized Direct Indexing is available only from $100k
Well, here’s few concepts that differentiates robo-advisor’s from traditional financial advisor managed investments:
- Tax Loss Harvesting
- Direct Index Investing
Here’s a video that shows how Tax Loss Harvesting Works and that’s the core of all these
Let me know if you have any questions about this experiment. I will be updating this page as I learn more about various concepts like Tax loss Havresting, Direct Index Investing vs ETS’s and other concepts of Robo-Advisors.
Note: Links may be referral (or affiliate links) to the respective sites. I’m sharing the performance based on my investment portfolio and returns and I’m not a financial advisor 🙂