Backend Benchmarking Publishes 20th Edition of the Robo Report(TM) and 7th Edition of the Robo Ranking(TM)

• Backend Benchmarking Publishes 20th Edition of the Robo Report™ and 7th Edition of the Robo Ranking™; SoFi Edges out SigFig for the Top Spot for Best Overall Robo Advisor of the Robo Ranking
• Special Report Shows Schwab’s High Cash Allocations in Schwab Intelligent Portfolios Have Cost Investors Over $500 Million in Portfolio Growth Over the Past Six Years

MARTINSVILLE, NJ / ACCESSWIRE / August 11, 2021 / Backend Benchmarking™ has published the 20th edition of the Robo Report™ and the 7th Edition of the Robo Ranking™ covering the second quarter of 2021. It is a continuation of an ongoing study that monitors well-known robo advisors.

The company also did a study of what Schwab’s high cash allocation cost investors. “We estimate that over the past six years, the high cash allocation in Schwab’s Intelligent Portfolios has cost investors over $500 million in portfolio growth,” said Ken Schapiro, Backend Benchmarking CEO, “assuming Schwab had fully invested these portfolios in Schwab’s bond portfolio and charged a 0.30% management fee.”

The firm estimates that at the end of 2020, robo advisors managed approximately $785 billion in assets, up from $631 billion at the end of 2019. Of this $785 billion, $77 billion is invested with independent fintech providers, $395 billion is managed by employer plan providers, while incumbent financial institutions manage approximately $313 billion.

“While AUM growth had a tailwind of positive market returns for the year, 25% growth in AUM for a maturing industry is strong,” said David Goldstone, Manager of Research and Analytics for Backend.

“More than 10 years after the first direct-to-consumer robo advice platforms launched, the industry is entering a more mature phase,” says Mr. Schapiro. “As the industry matures, platforms are also trying to expand services and features.” SoFi, originally a lender, now offers banking, self-directed investing, managed accounts, proprietary funds, and is even offering some clients the ability to invest in IPOs.

“SoFi has narrowly edged out SigFig for the top spot for Best Overall Robo Advisor in this edition of the Robo Ranking,” said Mr. Goldstone. “SoFi’s first-place finish can be attributed to its top performance grade, access to financial experts, and exceptionally low total cost.”

In addition to SoFi, SigFig and E*Trade were top choices, finishing second and third, respectively, in the Best Overall Robo category.

Overall Robo Ranking Highlights:

• SoFi Invest wins Best Robo for Performance at a Low Cost,

SigFig is Runner-up

• Betterment wins Best Robo for First-Time Investors; SoFi is Runner-up
• Wealthfront wins Best Robo for Digital Financial Planning, Runner-up is

Personal Capital and Schwab takes Honorable Mention

• Vanguard Personal Advisor Services wins Best Robo for Complex Financial

Planning; Runner-up: Personal Capital, Honorable Mention goes to Ellevest

Overall Robo Report Top Portfolio Performers:

1-Year Trailing Top Performers:

• Total Portfolio: Schwab Domestic Focus, Morgan Stanley Robotics, and

Schwab

• Equity: Schwab Domestic Focus, Schwab, Morgan Stanley Robotics
• Fixed Income: Fidelity Go, Fifth Third Bank OptiFi, Schwab Domestic Focus

3-year Trailing Top Performers:

• Total Portfolio: T. Rowe Price ActivePlus Portfolios IRA, SigFig, Morgan

Stanley SRI

• Equity: Morgan Stanley SRI, SoFi, Zacks Advantage
• Fixed Income: E*Trade Core, Axos Invest, SigFig

5-year Trailing Top Performers:

• Total Portfolio: SigFig, Axos Invest, E*Trade Core
• Equity: SigFig, Vanguard P.A.S., Axos Invest
• Fixed Income: Schwab, SigFig, Axos Invest

This edition of the Robo Report tracks 77 accounts at 43 different providers and includes the Robo Ranking, the most comprehensive analysis of robo advisors available. The Ranking includes both qualitative factors, such as access to advisors and financial planning features, as well as the performance metrics of our accounts held at each provider.

The Robo Ranking grades robo advisors across more than 45 specific metrics and is the only examination that includes real and reliable performance data. The company scores each robo on various high-level categories, such as features, financial planning, customer experience, access to live advisors, transparency and conflicts of interest, size and tenure, account minimums, costs, and performance.

Please note:

Performance is partly based on Backend Benchmarking’s innovative method to compare globally diversified portfolios called Normalized Benchmarking. A methodology of Normalized Benchmarking, details of how they create the scores and ranking, and the Robo Report™ and the Robo Ranking™ are all available for free at https://www.backendbenchmarking.com/the-robo-report/. Follow the Report on Twitter @theroboreport.

Please see this link for Terms of Use Guidelines for subscribing or using data: https://www.backendbenchmarking.com/the-robo-report/use-guidelines/.

Failure to comply with the guidelines may result in a takedown notice, revocation of your subscription to the firm’s research, and/or legal action.

To request written consent or a license, contact The Company at info@backendb.com or call 732-893-8290 and ask for David Goldstone.

Disclaimer of Warranties:

Research is provided ‘as is’ with all faults. The Company disclaims all warranties of any kind regarding the Research, either express or implied, including but not limited to, any implied warranty of merchantability, fitness for a particular purpose, ownership, noninfringement, accuracy of informational content, and absence of viruses and damaging or disabling code.

The Company does not warrant the accuracy, completeness, or timeliness of the Research. The Company shall not be responsible for investment decisions, damages, or other losses resulting from use of Our Research.

Past performance does not guarantee future performance. The Company shall not be considered an ‘expert’ under the Securities Act of 1933. The Company does not warrant that this service complies with the requirements of the FINRA or any similar organization or with the securities laws of any jurisdiction.’

Some jurisdictions do not allow the exclusion or limitation of implied warranties, so the above exclusions or limitations may not apply.

Please direct media inquiries to:

Bill Bongiorno
President
Blue Chip Public Relations, Inc.
914-882-5594
www.bluechippr.com

SOURCE: Backend Benchmarking

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