Betterment/Wealthfront Performance
For those who have their portfolio automated/managed by one of these services, how did your portfolio perform in the last 3 weeks? Im thinking about one of these services. What would you recommend?
No software in last 3 weeks could give positive gains.
They don't perform any better than the indexes. It's not a hedge fund.
On the positive side betterment emailed me saying theyβd harvested tax losses for me. Yay.
My Wealthfront account has performed pretty poorly over the past year (barely breaking even). The past week I've lost around 8%. To be fair, I have my risk tolerance set pretty high (8.5), but even still the account has performed worse than a savings account all year and now there's nothing to insulate me from this market drop. Pretty disappointed.
Yeah I'm bailing on wealthfront soon, very poor returns compared to market.
Wealthfront 9.0 risk. About -10%.
They are no better than indexes. But you lose on the management fee in the long run.
If they are no better than index funds, are they just a racket?
Yup
There is obviously a demand for this kind of product. People who are not financially savvy find it easier than browsing thousands of index funds. The convenience might justify the fee. For me it doesnt offer enough value added for that they charge. But everyone is different.
Losses for the year are because, betterment at least, is highly exposed to international funds and emerging markets. Don't just look at tech or the sp500 as a way to measure your expected returns. Not saying it's great or anything, but just know what you're buying into
I just changed my risk score to 5, limiting the international exposure.
Last 3 weeks have lost 50% value
Wow, insane.
Wow. Iβm down only 15 or so across the board.