The number of robo advisors around seems only to keep growing. This can make it hard to figure out which option is right for you. Not all robo advisors are created equal, both when it comes to their fee structures and historical performance. Additionally, they may have different feature sets, and some of them might not meet your needs. If you want to make sure you can get the biggest returns possible, here are three robo advisors worth exploring.
Wealthfront is a leader in the robo advisor category for a reason. The company has a lot to offer, including low ETF expense ratios and automatic rebalancing. It’s great for hands-off investors who still want to see a strong overall performance and don’t want to see their gains eaten away by high fees or costs.
Plus, unlike many competitors, there’s tax-loss harvesting. With an eligible account, that service can add up to 2 percent to your annual investment performance on its own.
It’s also a leader when it comes to performance, outdoing competitors regularly. As a result, it is often considered when of the most robust options around for those who can maintain the $500 account minimum.
2. Axos Invest
Formerly known as BanyanWise, Axos Invest is another robo advisor that shines when it comes to performance. There’s also no account minimum, making it a solid choice for beginners, free management, and helpful goal-based planning tools.
With Axos Invest, you also get access to tax-loss harvesting, giving you extra value. However, that comes with an added fee and might not make sense for everyone.
You also don’t have as many account choices with Axos Invest. For some, the price structure is also a bit confusing. But that doesn’t mean it isn’t worth a look, especially if historical performance is a priority.
3. Fidelity Go
Fidelity Go offers competitive fee structures, a $0 account minimum, and a strong overall performance, making it a solid choice in the robo advisor landscape. It also integrates easily with other Fidelity accounts, which may be beneficial if you have other Fidelity products.
Additionally, there is some human portfolio oversight, so it isn’t entirely automated or algorithm-created. Some may find this comforting, though it may not matter to others.
Unlike the other two options above, you won’t find any tax-loss harvesting here. However, the streamlined all-in-one cost structure (0.35 percent with no additional investment expenses) might be appealing enough to offset that fact.
Robo Advisors are becoming a popular options for those looking to invest without the hassle of a human advisor. Take a look, this may be the perfect option for you.
Do you use a robo advisor? Are you satisfied with your returns? Share your thoughts in the comments below.
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.