How was the performance of wealthfront and betterment during the recent stock correction as compared to say S&P 500?
Yep I lost a bit due to this correction. I had my settings on "7" as my risk profile. Made almost 19% returns over the last year but lost 3% during this time
Why do you guys always end up comparing Wealthfront and Betterment to S&P 500??! Both robos have a DIVERSIFIED portfolio containing international stocks (both developed and emerging), small caps, bonds, real estate, etc.
They use it as the risk free return for Sharpe ratio calcs.
One of the biggest selling points of robo traders are they will help you exactly in situations like this. So if neither of these perform better than a standard index, then why use it?
And you do understand that the stock market goes up and down and those fluctuations are totally normal? On a normal year of say 200 trading days, you could easily have 75 of those days that are down - in any normal year. Are you going to complain 75 times per year that you "lost" money and that you got screwed by Wealthfront or Betterment?
While that’s absolutely true this was a bigger fluctuation than a standard day
Of course. But if you're invested for long term, you'll see crazy days like that every once in a while. Always happened, will always happen. Really no big deal at all.
Betterment managed to loose money on my portfolio in 2016. A single percent, when the market was constantly going up. I came even only after deducted the loss. The idea is still immature and they in no way motivated to focus on you, the customer.
Did you invest consistently through the year? Hard to believe how that’s possible.
Yeah, I’ve made +20% over the last 2 years in my conservative savings account on Betterment. How do you lose money with them?
@Liel from Microsoft. While VTI is a great ETF (my favorite actually), it's not enough diversification. It's still only US stocks. Look at this chart - it might be the most important chart you'll ever see to understand. As you can see there are years where international stocks easily outperform US stocks. It's really not possible to predict when that happens though.
Don't use Wealthfront. They take way longer than betterment to sell your position when you cash out.
I personally lost thousands. To be clear, all of my gains of the last three months