ROBO ADVISOR RANKING CATEGORIES

Brief summary of methodology

As part of the survey, Nummo analyzed 17 robo-advisors and almost 300 individual robo-advisor portfolios. This does not include every robo-advisor in the market today and reflects only certain robo-advisors that provide publicly available data regarding their portfolios and processes. Nummo rated the robo-advisor services based on several factors given the needs of the typical American and developed a composite score for each robo-advisor portfolio. The factors Nummo considered were:

  • 1. The historical performance within the “Review Period” (Dec. 1, 2017 to Dec. 1, 2018)
  • 2. The total cost* of investing in the robo-advisor portfolio
  • 3. The required minimum deposit
  • 4. Any tax beneficial services** offered by the robo-advisor
  • 5. Whether the robo-advisor supported automatic deposits
  • 6. Whether the robo-advisor offers access to a human advisor
  • 7. Whether the robo-advisor offers fractional share investing
  • 8. Whether the robo-advisor offers automatic dividend reinvestment
  • 9. Whether the robo-advisor offers automatic rebalancing
  • 10. Whether the robo-advisor offers socially responsible investing, commonly referred to as SRI, strategies

Portfolios were classified*** based on the equity allocation of the respective robo-advisor portfolio. Retirement account strategies and taxable investment strategies were broken out to better compare returns between portfolios with similar investing strategies. Robo-advisor portfolios were then separated into risk groups and ordered by their composite scores. The formulas used to calculate the composite scores for each ranking are provided in the Methodology section below.

Roboranking summary methodology

3 main categories

We compare portfolios with similar risk profiles and highlight what we believe are the strongest portfolios in each category.

Best Texable Portfolios

Taxable

Best Retirement Portfolios

Retirement

Additional Top Picks

Other

Robo-advisors reviewed

We analyzed 17 robo-advisors and almost 300 individual robo-advisor portfolios. This does not include every robo-advisor in the market today and reflects only certain robo-advisors that provide publicly available data regarding their portfolios and processes.

  • 200DEEP
  • acorns
  • AssetBuilder
  • Betterment
  • charles SCHWAB
  • ELLEVEST
  • Fidelity
  • M1 Finance
  • Morgan Stanley
  • qplum
  • SIGFIG
  • SoFi Wealth
  • SOGO MARKETRIDERS
  • STASH Invest
  • TIAA
  • Wealthfront
  • Wealthsimple
  •  
Robo Logos

* The total cost metric for robo-advisors that charged a flat fee is based on an investment equal to the median of the minimum deposits required by competitors.

** Tax beneficial services are not taken into account for retirement accounts because, due to the tax-advantaged characteristics of retirement accounts, the capital gains and losses are not eligible for services like tax loss harvesting.

*** TaxNummo’s portfolio classification naming convention is not linked to the portfolio names given by the robo-advisors and therefore may differ from how the robo-advisor describes its portfolios.