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1、Condor Capital Wealth Management is proud to publish the 26th edition of the Robo Report,covering the fourth quarter of 2022,and the tenth edition of the Robo Ranking.Tis Report is a continuation of an ongoing study that monitors well-known robo advisors.We strive to provide a reliable resource for

2、both investors and professionals interested in the digital advice industry.Te Robo ReportFourth Quarter 2022E D I T I O N 2 6Highlights:Te Winner of Best Overall Robo,Wealthfront,provides a top-tier digital experienceand strikes an impressive balance between simplicity,functionality,andcustomization

3、.(pg.7)SoFis budgeting,career coaching,live planning,low fees,and ability to manage manyareas of ones financial life on a single platform combine to make SoFi the winner forBest Robo for First-Time Investors.(pg.8)Wealthfront,Schwabs Domestic Focus,and Morgan Stanley Inflation Conscious werethe deci

4、sive winning accounts for the year.(pg.15)Te major driver of fixed income performance over the last three years has been theallocation to municipal bonds.(pg.16)Betterment announced it was transitioning to a subscription-based fee of$4 a monthfor smaller accounts without recurring contributions,sign

5、ificantly raising costs formany clients.(pg.9)Table of ContentsExecutive Summary.3Robo Ranking.5Introduction.5Robo Ranking Scores.6Award Winners.7Top Performers.14Performance Commentary.15Total Portfolio Performance Chart.18Terms of Use and Disclosures .19All supporting data can be found online at T

6、ablesTotal Portfolio ReturnsEquity&Fixed Income ReturnsFees,Minimums,and AllocationsRisk StatisticsNormalized BenchmarksInternational AllocationDisclosures2Executive SummaryThis edition of the Robo Report,published byCondor Capital Wealth Management,tracks 57accounts at 32 di?erent providers.The Rob

7、oReport continues to evolve,and this quarter,webring you our usual data,which can be foundonline at https:/ well as performance commentary for thequarter.This quarter,we publish our RoboRanking Winter Edition,providing an in-depthlook at both the qualitative factors of robo-adviceplatforms,as well a

8、s the performance of ourunderlying accounts.Wealthfront and SoFi have topped our rankingfor Best Overall Robo this year.Full details andscores for our ranking can be found in the RoboRanking section of this report.PleasenotethattheWealthfrontaccountoriginally invested in 2016 has held a dedicatedall

9、ocation to an energy holding since inception.According to portfolio allocations posted on theWealthfront website,new accounts opened atWealthfront do not have this“natural resources”allocation.Our main account is in a legacyportfolio model.We also track an account thatwas opened and invested in 2018

10、.This accountsallocation appears closer to the current modelso?ered at Wealthfront.Starting this quarter,wewill publish the performance of both of theaccounts we track and label them by the years inwhich they were?rst invested.The Robo Rankingscores the performance of our account as part ofthe ranki

11、ng metrics.The ranking score is basedon our legacy 2016 account to be consistent withprior rankings.2022 was dominated by the economic aftershocksoftheCovid-19pandemic.Governmentspending,householdsavings,andpent-up3demand facing o?against disrupted supply chainsignited in?ation in 2021.Waking up lat

12、e toreality,in 2022,the Federal Reserve lurched intoaction,embarkingonahistoricrate-risingcampaign.The rapid rise in rates drove currentvaluesoffuturecash?owsdownwards,decimating valuations of low pro?t,high growthcompanies and driving asset prices of valuecompanieslower.Risingratesalsohurtbondholde

13、rs by providing a painful ride for bothequity and?xed-income investors.Thankfully,in?ation has,at last,shown signs of easing,andthe Fed appears to be approaching the end of itsrate hiking cycle.Bonds are delivering trulyattractive yields for the?rst time in many years,and equity markets have risen f

14、rom their lows,re?ecting investors optimism for 2023.The pace of change in the robo-advice industryhasrecentlyslackenedasthemarkethasconsolidated the winners,and most major banks,discount brokers,and wirehouses have launched adigital advice or hybrid advice o?ering.The mostnotable news of 2022 was t

15、he unraveling of theUBS-Wealthfront merger.UBS has long struggledwith its robo strategy,both closing its Europeanrobo,SmartWealth,and opening the AdviceAdvantage robo product in the U.S.withinmonths of each other in 2018.When the mergerbetween Wealthfront and UBS was announced,itwas unclear what tha

16、t would mean for theexisting robo-advice product,Advice Advantage,whichisbackedbySigFig.Regardless,Wealthfront will remain independent for the timebeing after the tie-up was abandoned last year.In other news,Betterment announced it wastransitioning to a subscription-based fee of$4 amonth for those w

17、ith less than$20,000 platformassetsorthosewithoutmonthlyrecurring4depositsof$250ormore.Perhaps?nallyadmitting that serving small-asset clients is notpro?table with an annual fee of just 0.25%.Unfortunately,it has also not raised its minimum.This means without recurring deposits,someonewho opens an a

18、ccount with just$500 can expecttopaytheequivalentofanearly10%management fee.ThebehemothVanguardcontinuestoincrementally improve its platform.Announcingthe expansion of automated tax loss harvesting forits digital-only product Digital Advisor.Vanguardis now also clearly marketing its three distinctad

19、vice tiers:Digital Advisor,Personal Advisor,and Personal Advisor Select.Personal Advisor is ahybrid-advice product with a team of advisorsapproach,while those with$500,000 or above geta dedicated advisor with Personal Advisor Select.While we believe dedicated advisors have longbeen available to thos

20、e with$500,000 or more,this highest tier of services is now clearlymarketed as a separate service.For our performance and market commentaryand our newest ranking winners,please read-on.We look forward to another exciting year in therobo-advice industry.IntroductionThe Robo Ranking grades robo adviso

21、rs acrossmore than 45 speci?c metrics and is the onlyexaminationthatincludesrealandreliableperformance data.We scored each robo onvarious high-level categories,such as features,?nancial planning,customer experience,access toliveadvisors,transparencyandcon?ictsofinterest,size and tenure,account minim

22、ums,costs,and performance.Each metric that we gradeis speci?c and unambiguous.The Robo Ranking is a powerful tool to helpthose investors who are considering using a digitaladvisor.Although we rank and give each robo anoverall score,we also acknowledge the di?erencesin individual investors and their

23、situations.Tohelp investors?nd a product that is right forthem,we created sub-rankings to highlight wheredi?erent products excel.Once investors haveidenti?ed their needs,the category rankings canhelp them select a provider that stands out in theareas that are most important to them.The performance s

24、core is partly based on theRobo Reports innovative method to compareglobally diversi?ed portfolios called NormalizedBenchmarking.A methodology of NormalizedBenchmarking can be found on our website.Thedetails of how we created the scores and Rankingcan also be found on our website.5Bringing Transpare

25、ncy to Robo InvestingTe Robo RankingW I N T E R 2 0 2 3 E D I T I O NCondor Capital Wealth Management is excited to publish the 10th edition of the Robo Ranking.Te Robo Ranking is the only comprehensive ranking of robo advisors.It examines not only the features and services but also portfolio perfor

26、mance that is sourced from real accounts tracked by the Robo Report.Robo advisors have taken the advice industry by storm,with the larger independent providers continuing to show strong growth and innovative features,and robo advice technology being adopted across banks,brokerages,and other traditio

27、nal advice firms.Robo-advice providers are proving attractive to individual investors in large part due to their significantly lower minimums and costs.Here at the Robo Report,our goal is to bring transparency to the digital advice industry to empower investors to seek the best products and services

28、.Robo Ranking ScoresRobo NameAccess toAdvisorsFinancialPlanningTransparencyand ConflictsFeaturesCustomerExperienceMinimumSize andTenureCostsPerformanceTotalWealthfront0.015.06.07.67.03.02.012.524.877.9SoFi8.015.04.05.36.23.01.415.019.377.1Fidelity Go6.013.57.04.67.13.01.812.421.677.0Merrill Edge Gui

29、ded Investing8.012.09.04.86.42.41.010.519.173.2Schwab6.512.08.04.79.12.42.011.317.173.1Personal Capital6.515.010.07.07.00.02.05.819.572.8Vanguard6.515.01.05.87.02.42.014.019.072.7Betterment6.013.58.09.26.53.02.012.511.672.3SigFig8.010.58.03.86.52.41.612.815.869.3ETrade Core Portfolios6.013.57.04.87.

30、63.02.012.510.767.1US Bank Automated Investor7.09.07.04.56.92.40.812.615.766.0JP Morgan Chase AutomatedInvesting6.015.06.03.67.03.00.512.07.560.6Wells Fargo Intuitive Investor7.012.05.06.06.13.01.010.38.759.1Ally Invest Robo Portfolios0.09.08.04.86.83.01.611.79.354.2Acorns0.03.05.06.86.73.01.814.96.

31、147.3MAX10.015.010.010.010.03.02.015.025.0100.0Produced by The Robo Report60102030405060708090WealthfrontSoFiFidelity GoMerrill EdgeGuidedInvestingSchwabPersonalCapitalVanguardBettermentSigFigETrade CorePortfoliosUS BankAutomatedInvestorJP MorganChaseAutomatedInvestingWells FargoIntuitiveInvestorAll

32、y InvestRoboPortfoliosAcornsPerformanceCostsSize and TenureMinimumCustomer ExperienceFeaturesTransparency and ConflictsFinancial PlanningAccess to AdvisorsBest Robo AdvisorsBest Overall Robo AdvisorWinner:WealthfrontRunner-up:SoFiWealthfront is our selection for the Best OverallRobo in this years Ro

33、bo Ranking WinterEdition.Wealthfront is one of the pioneers in theindustry and is one of the few remainingindependent providers,although it was nearlyacquired by UBS last year.The digital experienceo?ered by Wealthfront is top-tier and strikes animpressivebalancebetweensimplicity,functionality,and c

34、ustomization.Wealthfront hashad a strong platform that has been a leader ininnovation since its founding over a decade ago.Wealthfront is also one of the only platforms thathave stuck to its original digital-only o?ering.While you can now call in and receive operationalsupportfromasmall,in-persontea

35、m,Wealthfronts intention is to make its onlineexperience strong enough to eliminate the needfor live advisors.The online digital planningexperience is rivaled by only a few other productson the market.The platform o?ers a version ofdirectindexing,hasintroducedinnovativecustomizationoptions,andnowo?e

36、rsESG-themed portfolios.Wealthfront was also a7Wealthfront has had a strong platform that has been a leader in innovation since its founding over a decade ago.pioneer in bringing automated tax-loss harvestinginto the hands of any retail investor.Along withBetterment,Wealthfront sets the benchmark fo

37、rlow fees at 0.25%.We look forward to futurefeature releases from Wealthfront as they havealways been on the forefront of innovation withinthe space.Wealthfronts all-around score in this version ofthe Ranking is inlarge part due to theperformance of ouraccountin2022.While we cover thisoutperformance

38、inother areas of theReport in more detail,investors should note onekey facet of our model.The portfolio was?rstinvested in 2016 and has long held a dedicatedallocation to an energy-focused ETF.Since our?rst investment,models at Wealthfront have beenupdated to no longer include this allocation toener

39、gy,but likely due to tax considerations,ourportfoliocontinuedtoholdenergy.Thosefollowing the markets know that energy has beenone of the few areas with positive returns in themarket this year.Not all investors will haveTe Winner of Best Overall Robo,Wealthfront,provides a top-tier digital experience

40、 andstrikes an impressive balance between simplicity,functionality,and customization.Te premier examples of online digital planning tools come from the three winners for BestRobo for Digital Financial Planning:Personal Capital,Wealthfront,and Schwab IntelligentPortfolios Premium.SoFis budgeting,care

41、er coaching,live planning,low fees,and ability to manage many areasof ones financial life on a single platform combine to make SoFi the winner for Best Robo forFirst-Time Investors.While a long-time favorite of ours for those just starting on their investing journey,we havemoved Betterment to the Ho

42、norable Mention for First-Time Investors due to its change in feestructure.experienced the fantastic outperformance byWealthfront that we did.SoFi has greatly expanded the types of?nancialproducts it o?ers over the past few years as itambitiously looks to compete with national banksfor retail invest

43、ing and banking business.Whilethis ranking focuses on the investing productsSoFi o?ers,it is worthnoting the depth of theplatform as a whole.On the SoFi platform,individualscan?ndbank accounts,creditcards,mortgages,insurance,self-directedinvesting,crypto,andof course,their originalbusiness line of s

44、tudent loan re?nancing.Thechecking accounts are free,the savings accountso?er high interest rates,the credit cards o?er 2%cash back,self-directed trading is commissionfree,and the Auto-Invest robo product has nomanagement fee.While this line-up of low-tono-cost products is compelling,it is important

45、 tonote that SoFi has grown with signi?cant venturecapital investment,and growth has likely been apriorityover pro?tability.We mention thisbecause as the company matures and the focusshifts towards pro?ts,we will not be surprised ifSoFi starts to introduce more fees for some of itsproducts.All SoFi

46、members get free access to live?nancialplanning services,which is one reason we like theinvesting platform.SoFi receives a high score in?nancial planning due to the quality?nancialplan a user can receive through the live planningoption.Wenote that those looking for atop-of-class digital planning exp

47、erience shouldconsider our best Robo for Digital FinancialPlanning winners,as SoFi planning is primarilythrough sessions with live planners.SoFi doeso?er a strong budgeting tool as well as careercoaching for those interested.The ability of liveplanners to deliver a comprehensive?nancialplan,low cost

48、s,and strong portfolio performancehas driven SoFi to a top spot in our Ranking.Best Robo for Performance at a LowCostWinner:WealthfrontRunner-up:Fidelity GoThe Best Robo for Performance at a Low-Costcategory is designed to reward those investors thatseek the best bottom-line quantitative metrics,spe

49、ci?cally,returns and fees.For the three-yearperiod ending December 31st,2022,a period thatcontained about two and a half years of fallinginterest rates and a year of rapidly rising rates,ourWealthfront portfolio was the top performer,followed by Fidelity Go as the Runner-up.The driving force behind

50、Wealthfronts equityoutperformance was notable investments in theenergysector,provingvaluableduringrecentin?ationary times.In2022,theenergysector outperformedthe S&P 500 by a whopping 80%,as energy stockswere up over 63%while the S&P 500 was down18%.Investors in Wealthfronts style of portfoliobene?tt

51、ed tremendously last year from having adedicated energy holding which worked as bothan in?ation hedge and bene?ted from thedisruption of energy markets.While Wealthfront bene?ted over the past yearfrom its tilt towards the value sector of energy,growth as a whole outperformed value over thepast thre

52、e years.During the 3-year trailing periodending December 31st,2022,the Russell 3000Growth index outperformed the Russell 3000Value index by about 5%per year on average.8SoFi has greatly expanded the types of financial products it offers over the past few years as it ambitiously looks to compete with

53、 national banks for retail investing and banking business.Wealthfront portfolio was the top performer,followed by Fidelity Go as the Runner-up.Fidelity Go generally maintains a market-neutralposition towards growth and value.Many othersin the robo universe have speci?c tilts towardsvalue,which over

54、long periods,has been a drag onperformance.On the?xed-income side of the portfolio,bothportfolios allocate heavily to municipal bonds.Munis have held up well and have been atop-performing?xed income asset class over thepastthree-years.OurFidelityGoaccountallocates the entirety ofits?xedincometomunic

55、ipals.Incomparison,Wealthfront augmentsmunicipalholdingswith TIPS,another strong performer in 2022 andthe three-year period.Additionally,both portfolios held below-averageallocations to the parts of the market thatdetractedfromperformance,namelyinternational stocks and small-cap stocks,at atimewhent

56、heseassetsunderperformedsigni?cantly.Best Robo for First-Time InvestorsWinner:SoFiRunner up:Fidelity GoHonorable Mention:BettermentSoFi is a great option for?rst-time investors.Onereality for many young Americans is the investingjourney really starts on a path to paying downstudent loans or other de

57、bt.SoFi is a platformwhere student borrowers can explore options toconsolidate debt as a?rst step and work their waytowards saving for long-term goals over time.SoFihas other features that are also tailored to thoseearlier in their investing career.SoFi not onlyo?ers access to live?nancial planners

58、but also tocareer coaches.Young investors can bene?t greatly9Additionally,both portfolios held below-average allocations to the parts of the market that detracted from performance.We award Fidelity Go with the Runner-up in this category thanks to exceptionally low costs,an evolving and accessible di

59、gital platform,and strong long-term returns.from maximizing and growing their humancapital at early stages in their lives.SoFi Relay isalso a quality budgeting tool,allowing outsideaccounts to be tracked and helping investors withsmart budgeting.Budgeting,career coaching,liveplanning,low fees,and th

60、e ability to managemany areas of ones?nancial life on a singleplatform combine to make SoFi the winner forBest Robo for First-Time Investors.We award Fidelity Go with the Runner-up in thiscategory thanks to exceptionally low costs,anevolving and accessible digital platform,andstrong long-term return

61、s.When looking at thecosts of Fidelity Go,an investor will?nd no-costunderlying Fidelity Flex funds.Furthermore,from a management fee perspective,the?rst$25,000 is managed for free,making it especiallyattractive for thosewith small sums togetstarted.Whenlookingattheportfolioitself,itboaststop-quarti

62、lelong-termperformance thankstoasimpleandelegant portfolio that tilts towards large-cap U.S.stocks,which have performed well on a relativebasis.Finally,when looking at the digital platformitself,Fidelity has a mobile app called Spire,which is geared toward the millennial generation.It contains quick

63、-read articles on topics likewedding planning and retirement while alsoallowing the user to easily monitor their accountswith various?nancial goals all in one place.Theteam at Fidelity continues to innovate its digitalplatform while o?ering a low-cost competitiveproduct making it a great choice for?

64、rst-timeinvestors.We award Betterment the Honorable Mention forFirst-Time Investors.While a long-time favoriteof ours for those just starting on their investingin price.While many?rst-time investors may notwant continual access to a CFP planner,especiallyif they are young and still in the early phas

65、es ofaccumulation,they may want some help from liveplanners to get them started.Betterment o?ersa-la-carte packages of sessions with live plannerswithout needing to sign up for a higher servicetier.Best Robo for Digital FinancialPlanningWinner:Personal CapitalRunner-up:WealthfrontHonorable Mention:S

66、chwabIntelligent Portfolios PremiumThe democratization of professionally managedportfoliosisthemostsigni?cantimpactrobo-advisors have had on the?nancial adviceindustry.Not only have robos democratizedmanaged accounts and access to advice,but theyhave also brought high-quality?nancial plans toanyonew

67、ithaninternetconnectionandwillingness to spend some time building a plan.The winners in thiscategoryarethebest-in-classdigitalplannersonthemarket.And to topito?,PersonalCapitalandWealthfrontmaketheir digital plans available to anyone withoutneeding to open an investment account.The premier examples

68、of online digital planningtools come from the three winners of Best Robofor Digital Financial Planning:Personal Capital,Wealthfront,and Schwab Intelligent PortfoliosPremium.One area where these tools stand out isthey not only can bring in data on outsideaccounts,but they can combine multiple goalsin

69、toasingle,holistic?nancialplan.Thecapability to build in future events,such as Social10Not only have robos democratized managed accounts and access to advice,but they have also brought high-quality financial plans.journey,we have moved Betterment to theHonorable Mention category in this edition ofth

70、e Robo Ranking due to its change in feestructure.Now,investorsmusthaveeither$20,000 in platform assets or a$250 recurringmonthlycontributiontoreceive the 0.25%managementfee,thosenotmeetingtheserequirements pay$4 a month.This means for a$1,000 account,this equates to around a 4.8%annual fee.We no lon

71、ger feel this is the bestoption for those that cannot meet the criteria forthe 0.25%annual fee and must pay the$4subscription.Betterment is one of the longest-standing roboadvisors and one of the few that remainsindependent.Building from the ground up hashelped Betterment achieve an easy,intuitivein

72、terface with a friendly feel,making it a greathome for those new to investing.Digital planning at Betterment is a qualityexperience.Bettermentbalanceseasy-to-useplanning features while still having the ability tocomplete quality goal-based plans.Each goalallows the user to model di?erent inputs,whet

73、herdeposits,time horizon,or various scenarios fortheretirementplan.Theability to modelhypothetical changes to a users?nancial modelcan serve as an e?ective education tool,making itparticularly attractive for a new investor.Userscanbringinoutsideaccountsforholisticplanningandtrackprogressonmultiplein

74、dependent goals on a single dashboard.For those who want more than a basic indexedportfolio,Betterment has added multiplethematic portfolios over the years.It now o?ersthree ESG-themed portfolios:social,climate,andbroad impact.Betterment is also a great choice for?rst-time investors as the platform

75、can grow withclients as their situation grows in complexity.Betterment Premium o?ers unlimited access toCFP-credentialed planners for a modest increaseSecurity,pension or other retirement income,windfalls,and other custom inputs,aids in theirability to plan e?ectively.The three winners takethese too

76、ls and present them in a digestible,easy-to-usemanner.PersonalCapitalandWealthfront include these robust planning toolsin the standard,free-to-use versions of theirServices.PersonalCapitalhadamongthemostwide-ranging?nancial planning tools measured inour rankings.The robo advisor o?ers a variety ofin

77、-depth tools to aid in planning for retirement,savings,home purchase,education,and othergoals.The retirement planner allows you to set upseveral spending goalsalongside future incomeevents and calculates aprobabilityshowinghow likely you are tosucceed in these goals.Theretirementfeeanalyzer looks in

78、to your accounts holdings toidentify what portion of your investments may belost to expense ratios.Further,the planner givesyou the power to map out your current savings,an emergency fund,and allows you to plan to paydown debt.The Investment Checkup feature goesin-depth to explain to you how and why

79、 youshould be rebalancing your portfolio for the mostoptimaloutcome,takingintoaccountrisktolerance,age,andportfoliocomposition,including the ability to analyze positions heldelsewhere.Another nice feature o?ered is aconsolidated display of your net worth,monthlycash?ows,and other useful views of you

80、r?nances in a single dashboard.Additionally,PersonalCapitalhasaretirementassetdeaccumulation tool called Smart Withdrawal tohelp design a plan to draw down assets duringretirement in a tax-e?cient way.The wide arrayof tools,an integrated multi-goal plan,the abilityto customize inputs speci?c to the

81、investor,andSmart Withdrawal combine to make PersonalCapitalourtop Robo Advisor for DigitalFinancial Planning.Wealthfront launched as,and continues to be,adigital-?rst product with the goal of eliminatingthe need for human advisors and the higher feesthattypicallycomewiththem.Its digitalplanning too

82、ls go a long way in accomplishingthis goal.The tool has speci?c modules forretirement,education savings,and taking time o?to travel,as well as ahomebuyingmodulethatusesdata from real estatetech?rmRed?n.Theplanningmodule itself is notonlybuiltwithasimpleandeasy-to-use interface but also has a wide va

83、riety ofinput settings,allowing users to drill down andbuild complex plans.Retirement income,SocialSecurity,real estate,windfalls,and other detailscan be modi?ed within the planner.Another feature we like with Wealthfront isSelf-Driving Money.Self-Driving Money is a setof automated or semi-automated

84、 features to helpinvestors sweep and invest excess cash held in theirbank accounts.This is designed to help usersintegratetheirlong-termgoalswiththeirmonth-to-month saving and spending habits.Wealthfrontsplanneristheepitomeofinnovation across the robo-advisor universe.Schwab Intelligent Portfolios a

85、t the Premiumservice level is another compelling planningoption for robo investors.The?nancial plan canbe built collaboratively with a CFP-credentialedlive planner alongside a built-in integration withMoneyGuidePro,an institutional-quality suite ofplanning tools.Similar to other winners,Schwabhas bo

86、th the ability to model di?erent goals andintegrate them into a single holistic plan.The tool11Personal Capital had among the most wide-ranging financial planning tools measured in our rankings.Wealthfront launched as,and continues to be,a digital-first product with the goal of eliminating the need

87、for human advisors and the higher fees that typically come with them.also has the ability to model di?erent types ofincome,life events,scenarios,and other areas toallow for a higher level of customization.Schwab also goes above and beyond most otherplanners with its Schwab Intelligent Income tool.In

88、telligent Income is a speci?c module that helpsusers model spending during retirement.It hasautomated withdrawal features to help investorsspend down assets in a tax-e?cient way.It alsocan generate a monthly“paycheck.”Most peoplespend their adult lives learning to budget basedon regular paychecks.By

89、 replicating the monthlycash?ows of paychecks,Schwab helps ease thetransition from working to drawing down yournest egg.Schwab Intelligent Portfolios Premiumis one of the best planning experiences available inthe robo-advice universe.Best Robo for Complex FinancialPlanningWinner:Vanguard Personal Ad

90、visorRunner-up:Personal Capital(nowEmpower)While some of the digital planning tools on themarket have enough features to model manycomplex situations,we believe those with complexplanning needs can stillbene?tfromliveplanners.VanguardPersonalAdvisorchampionedthe“hybrid”advice modelandremains our top

91、choice for those withcomplex planning needs.While Personal Advisorstill leaves something to be desired on the digitalinterface,it provides tremendous value as it costsjust 0.30%in management fees.With a minimuminvestment of$50,000,users can work with a liveadvisortomodelmultiple?nancialgoals.Additio

92、nally,for those with$500,000 or more,Vanguard Personal Advisor Select provides adedicated advisor to clients at the same lowmanagement fee.Investors can view a comprehensive illustration oftheir assets for a full picture.When we considerthat traditional?nancial advice relationshipsoften ask for a 1%

93、management fee,VanguardPersonal Advisor has paved the way for a newkind of service.The Runner-Up for Complex Financial Planningprovides a combination of live planning with oneof the best digital planners on the market.Personal Capital is one of the more expensiveoptions available,priced starting at

94、0.89%,and itcarries a high minimum of$100,000.On top ofitsstellaronlineplanning,budget,andasset-trackingtools,PersonalCapital stands out ina few other ways.Personal Capital o?ers a few investment options,including an SRI option and direct indexing.Additionally,forthosewithmorethan$1,000,000 under ma

95、nagement,there are customallocation options,including private equity andother alternative investments.On top of thecomprehensiveretirementplanningfeatures,Personal Capital o?ers a feature called SmartWithdrawal.This tool simpli?es what can be thecomplexprocessofdeterminingwheretowithdraw retirement

96、spending funds to do so inthe most tax-e?cient manner.This feature cannot only help determine tax-e?cient withdrawals,but it will suggest whether Roth conversions ortax gain harvesting should be considered.WhilePersonal Capital is priced higher than most otherproducts we cover,it represents a next-g

97、enerationcombination of technology and live advisors.12Vanguard Personal Advisor championed the“hybrid”advice model and remains our top choice for those with complex planning needs.On top of the comprehensive retirement planning features,Personal Capital offers a feature called Smart Withdrawal.Robo

98、 Ranking Facts(Results as of 12/31/2022)3-YearAnnualizedReturn3-Year ReturnAbove/BelowNormalizedBenchmark3-YearSharpeRatioAccount MinimumAdvisory FeeWeightedAverageExpenseRatioAcorns10.98%-1.64%No minimum$3/month for Personal;$5/month for Personal Plus0.04%Ally Invest91.55%-0.86%0.14$1000.30%annuall

99、y;Also offers cash-enhanced portfolio with 30%invested in cash and no management fee0.06%Betterment272.01%-0.71%0.17Digital:No minimum;Premium:$100,000$4/month or 0.25%anually with$20,000 in platform assets or$250 monthly deposits;additional 0.15%annual fee for Premium0.09%Etrade CorePortfolios211.7

100、8%-0.63%0.15$5000.30%annually0.04%Fidelity333.09%0.63%0.24No Advisory fee on account balances under$25,000;0.35%onaccounts with balances over$25,0000.00%JP Morgan Chase70.97%-0.92%0.09JP Morgan AutomatedInvesting:$500;JP MorganPersonal Advisor:$25,000Automated Investing:0.35%annually;Personal Adviso

101、r:0.60%,discounted tiered pricing at higher asset levels;JP Morgan ETFexpenses will be rebated or offset against the management fee0.10%Merrill Edge312.85%0.21%0.22Guided Investing:$1,000;Guided Investing with anAdvisor:$20,000Guided Investing:0.45%annually(digital only);Guided Investingwith an Advi

102、sor:0.85%annually0.06%Personal Capital43.39%0.07%0.24$100,0000.89%annually;discounted tiered pricing at higher asset levels0.09%Schwab52.30%0.21%0.19Intelligent Portfolios:$5,000;Intelligent PortfoliosPremium:$25,000Intelligent Portfolios:No fee(digital only);Intelligent PortfoliosPremium:$300 initi

103、al planning fee,$30/month subscription0.17%SigFig62.45%-0.24%$2,000No fee for the first$10k;0.25%annually for balance over$10k0.06%SoFi172.89%0.26%0.22$1No management fee0.04%US Bank282.28%0.04%0.18$1,0000.24%annually0.09%Vanguard432.76%0.19%0.22Vanguard Personal AdvisorServices:$50,000;VanguardDigi

104、tal Advisor:$3,000Vanguard Personal Advisor Services 0.30%annually.VanguardDigital Advisor combined underlying fund fees and managementfees capped at 0.20%0.07%Wealthfront444.69%1.95%0.32$500,some additionalportfolio features require ahigher minimum0.25%annually0.09%Wells Fargo141.46%-1.06%0.14$5000

105、.35%annually;discounted relationship pricing may be available0.15%Produced by The Robo ReportReturns are net of fees and from 12/31/2019-12/31/2022.The weighted average expense ratio calculations exclude cash holdings from the portfolio130.100.20$10 minimum;access to live advisors requires a$25,000m

106、inimumTop Performers1-Year Trailing Top PerformersBest2nd3rdTotal PortfolioWealthfront(Risk 4.0;2016)Schwab Domestic FocusMorgan Stanley InflationConsciousEquityWealthfront(Risk 4.0;2016)Interactive AdvisorsSchwab Domestic FocusFixed IncomeZacks AdvantageMarcus Invest Smart BetaMarcus Invest SRIProd

107、uced by The Robo Report3-Year Trailing Top PerformersBest2nd3rdTotal PortfolioWealthfront(Risk 4.0;2016)Zacks AdvantageSchwab Domestic FocusEquityWealthfront(Risk 4.0;2016)Zacks AdvantageSchwab Domestic FocusFixed IncomeZacks AdvantageSchwab Domestic FocusSchwabProduced by The Robo Report5-Year Trai

108、ling Top PerformersBest2nd3rdTotal PortfolioWealthfront(Risk 4.0;2016)Zacks AdvantageFidelity GoEquityZacks AdvantageWealthfront(Risk 4.0;2016)Morgan Stanley SRIFixed IncomeSchwabSoFiVanguard P.A.S.Produced by The Robo ReportTotal Portfolio winners are based on the portfolios return vs.the Normalize

109、d Benchmark.Returns are net of fees and are as of 12/31/2022.14Performance CommentaryMarket BackdropThe year 2022 will go down in?nancial history asone of the worst periods for the“60/40”(60%stocks/40%bonds)investor.The year serves as auniquestress test of what can happen toinvestment returns when t

110、he Federal Reserveincreases the Federal Funds target rate fromnear-zero levels to over4%in a single calendaryear.Consequently,itwas a bad year for manyassetclassesandahistorically bad year forbond investors.According to some historians,2022 was the worst year for bonds in over 250years.It was also a

111、 poor year for stocks.The Bloomberg Aggregate Index posted losses ofabout 13.01%,while the S&P 500 posted a returnof-18.13%for the year.The year 2022 proved tobe a year that was not so much de?ned bygrowing investment portfolios but was insteadde?ned by mitigating losses.The world continues to watch

112、 closely as theRussia/Ukraine war unfolds.This did not bodewell for European risk assets in 2022 as the regionsu?ered from rising prices and an ECB that is ona path of increasing rates.One of the few brightspots for asset prices was the surge in energystocks,as sanctions on Russia have had majorimpl

113、ications on the global supply of energy.Despite the high in?ation numbers across theglobe,this was a year where cash and cash-likeinvestments were some of the few places to hide.One area of the market that fell precipitously in2022 was the equities that were the darlings ofWall Street and MainStreet

114、inrecentyears,namelycompanieswithespeciallyhighgrowthrates,little-to-no earnings,andexpensivevaluations.These companies were high?iers foryears but fell sharply as borrowing costs anddiscount rates increased.As a result of some ofthese factors,the Russell 3000 Growth Index fellabout 28.97%for the ye

115、ar,while the Russell 3000Value Index fell 8.01%.This change in stockmarketleadershiphasresultedinawidedispersion between 2022s winning robo advisorsversus those who won in the Robo Reports in yearsprior to 2022.One-Year PerformanceWhile the impact of in?ation and rising interestrates have led to dec

116、lines across our robo advisor15According to some historians,2022 was the worst year for bonds in over 250 years.Despite the high inflation numbers across the globe,this was a year where cash and cash-like investments were some of the few places to hide.Te year 2022 will go down in financial history

117、as one of the worst for the“60/40”investor.Wealthfront,Schwabs Domestic Focus,and Morgan Stanley Inflation Conscious were thedecisive winning accounts for the year.Te major driver of fixed income performance over the last three years has been the allocationto municipal bonds.Te top robo advisors ove

118、r the five-year trailing period were supported by low fees.16From an equity standpoint,Wealthfronts portfolio was the winning account thanks to its allocation to energy stocks.As market yields rose,bond prices fell across the board,but less so for those holding bonds with shorter maturities.accounts

119、,some have held up much better thanothers.Our Wealthfront portfolio(2016 vintage),Schwabs Domestic Focus,and Morgan StanleyIn?ation Conscious were the winning accounts,boastingmodestsingle-digitoutperformanceversus their respective Normalized Benchmark,aproprietary benchmarking process that compares

120、each account against a comparable asset allocationbenchmark.Fromanequitystandpoint,Wealthfrontsportfolio was the winning account thanks to itsallocation to energy stocks.The robos allocationto VDE,the VanguardEnergyFund,wasasigni?cantboontoportfolioperformance.For reference,the VDEETF returned over

121、60%for the year.Rangingbetween 5%and 10%of the equity portfolio,thededicated energy portion was an impactful hedgethis year against general in?ation and the risingenergy prices from the war in Ukraine.Schwabs Domestic Focus portfolio bene?ttedfrom its implementation of ETFs weighted byfundamentalsas

122、opposedtomarketcapitalization.For example,the robos allocationto FNDX,the Schwab Fundamental U.S.LargeCompanyIndexETF,postedamodestmid-single-digitlossfortheyear.Thesefundamentals-weighted ETFs did a nice jobmitigating losses in such a challenging year.Morgan Stanleys In?ation Conscious portfolioper

123、formed well.Holdings in an energy pipelinefundandcommoditiesfund,whichbothreturned more than 15%in 2022,helped drivethis portfolios outperformance.TheZacksAdvantageportfolioachievednoteworthy?xed income performance.Whereasthe average robos?xed income returned about-11.01%for bonds in 2022,Zacks retu

124、rned just-4.10%.Limiting duration was a key driver of thisoutperformance.As market yields rose,bondprices fell across the board,but less so for thoseholdingbondswithshortermaturities.Short-term municipal bond funds make up overhalf of Zacks?xed income allocation and weredown signi?cantly less than t

125、he greater bondmarket.Three-Year PerformanceOur Wealthfront,Zacks,and Schwab DomesticFocus portfolios posted?rst,second,and thirdplace?nishes,respectively,for thethree-yearperiodending2022.Thetopperformerstendedtotiltsigni?cantly towardsdomestic equities while underweighting foreignstocks.Additional

126、ly,the winners tended toallocate to municipal bonds over taxable options.Over the last few years,one of the mostpronounced areas of outperformance has been thereturns of U.S.equities over their counterparts ininternational developed and emerging marketcountries.Whether the outperformance is due toth

127、e innovative domestic marketplace or thesigni?cant challenges abroad,the U.S.has been anexcellent relative performer.For the three-yearperiod ending December 31st,2022,the S&P 500had an annual return of 7.64%while the MSCIEAFE Index posted a return of just 1.44%.Zacks,Schwab Domestic Focus,and our W

128、ealthfrontportfolio had some of the highest percentages ofU.S.equity exposure expressed as a percentage oftotal equities.The trend here was clear:stickingwith domestic stocks was a better-returningstrategythanamoregloballydiversi?edapproach.Another major driver of performance over the lastthree year

129、s has been allocations to municipalbonds.As the portfolios sit today,Zacks had thehighestallocationtomunicipalbonds,comprising nearly theentire bond portfolio,while earning the topscoreinthe?xed-incomecategory.Meanwhile,the SchwabDomesticFocusportfolio,the second place robo for?xed income,held about

130、 two-thirds of its bond portfolio inmunicipals.For the three-year period endingDecember 31st,2022,the iShares MunicipalBond ETF(MUB)had an annualized return ofFive-Year PerformanceWhenre?ectingonthelast?veyears ofinvestmentperformance,Wealthfront(2016)Zacks Advantage,and Fidelity Go won the topthree

131、 positions for Total Portfolio performancefor the?ve-year time period.The Fidelity account had support from a few coretailwinds.First,growth stocks demonstratedsigni?cant leadership over value stocks.This?ve-yearperiodwascharacterizedbyalow-interest-rate regime and a robust demand fortechnology,supp

132、orting the growth portion of themarket.Both Fidelity and Zacks are slightly tiltedtowards growth equities compared to the averageofourotherroboportfolios.Many otherportfolioshavedistincttiltstowardsvalueequities.Thesegrowth-tiltedallocationssupported performance over the?ve-year period.On the bond s

133、ide,Fidelity is part of the group ofrobo advisors heavily allocated to municipalbonds.Municipals outperformed taxable bondsby about 1.25%on an annualized basis for the?ve-year period ending 12/31/2022.AnothertailwindforFidelitywastheexceptionallylowexpenseratiosoffundsemployed.Whereas the average ro

134、bo advisor had aweighted-average expense ratio of 0.17%acrossour study group,Fidelity posted a 0.00%fee as ituses the Fidelity Flex funds.These are funds thatare completely freeofcharge.WealthfrontandZacks both show alow fee of 0.09%forfunds used in theirportfolios.Together,these three accountsare e

135、xamples of low-cost funds performing wellover the long haul.Although the impact of feesmay be subtle over a period spanning just a fewyears,it can be one of the most pronounceddi?erentiators over long periods.17Another major driver of performance over the last three years has been allocations to mun

136、icipal bonds.Although the impact of fees may be subtle over a period spanning just a few years,it can be one of the most pronounced differentiators over long periods.-0.54%,while the iShares Bloomberg AggregateBond ETF(AGG)posted an annualized return of-2.80%.Asrevenues and balance sheets ofmunicipa

137、litiesremainsolid,investorsmaycontinue to be rewarded for selecting thesetax-advantaged issues.Total Portfolio Performance18-20%-18%-16%-14%-12%-10%-8%-6%-4%-2%0%2%4%AcornsBettermentBetterment Broad Impact SRIE*Trade CoreE*Trade Core SRIEllevestFidelity GoFutureAdvisorInteractive AdvisorsJP Morgan C

138、hase Automated InvestingMarcus Invest CoreMarcus Invest Smart BetaMarcus Invest SRIMerrill Edge Guided InvestingMerrill Edge Guided Investing SRIMorgan Stanley Inflation ConsciousPersonal CapitalSchwabSchwab Domestic FocusSigFigSoFiStash Smart PortfolioTD Ameritrade Automated InvestingUBS Advice Adv

139、antageUS Bank Automated InvestorVanguard Digital AdvisorVanguard P.A.S.Wealthfront(Risk 4.0;2016)Wealthfront(Risk 4.0;2018)Wealthfront PassivePlus(Risk 4.0;2019)Wells Fargo Intuitive InvestorZacks Advantage1-Year3-Year5-YearTerms of Use(“Terms”)Last updated:9/30/2021Please read these Terms of Use(“T

140、erms”,“Terms of Use”)carefully before subscribing to the Robo Report and the RoboRanking(“Our Research”,“Research”)distributed by Digital Advice LLC(“The Company”)through the websitehttps:/ access to and use of Our Research is conditioned on your acceptance of and compliance with the Terms.These Ter

141、msapply to all subscribers and others who access or use Our Research.The Company reserves the right to change these terms at any time without notice.By continuing to subscribe to OurResearch,you agree to abide by them.Our Research focuses on digital services providing automated investment advice(“Ro

142、bo”,“Robos”).A“Covered Robo”isany Robo for which the Company publishes historical return data in Our Research.Our Research is copyrighted and owned by the Company.Use of Our Research for commercial purposes is strictly prohibitedwithout written consent or a license,except for Covered Robos who wish

143、to use Our Research for marketing purposes,subject to the following requirements:1.If materials,insights,facts,data or other information from Our Research is used,Our Research must becited as the source and it must be stated Our Research is produced by The Robo Report.2.To avoid misrepresentation,th

144、e name or time period of Our Research cited must be stated.For example,if the information used is performance from the First Quarter 2018 the Robo Report,it must be clearlystated that the performance is from the first quarter report,or performance numbers are from the timeperiod ending 03/31/2018.3.

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148、 ask for David Goldstone.Disclaimer of Warranties:Our 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 particularpurpose,own

149、ership,noninfringement,accuracy of informational content,and absence of viruses and damaging or disablingcode.The Company does not warrant the accuracy,completeness,or timeliness of the Research.The Company shall not beresponsible for investment decisions,damages,or other losses resulting from use o

150、f Our Research.Past performance does not guarantee future performance.The Company shall not be considered an“expert”under theSecurities Act of 1933.The Company does not warrant that this service complies with the requirements of the FINRA orany similar organization or with the securities laws of any

151、 jurisdiction.”Some jurisdictions do not allow the exclusion or limitation of implied warranties,so the above exclusions or limitations maynot apply.19Disclosures1These accounts were funded with more than the minimum amount required to establish an account.Hadtheaccountsbeenfundedwithmoreassets,they

152、wouldbechargeda?atdollarfeeupto$1,000,000.Becausethefeeisa?atdollaramount,ahigheraccountbalancewouldhavetheresultofincreasingre?ected performance,while a lower account balance would have the result of decreasing re?ected performance.In December of 2018,a$1feewasnotrecorded.Performance has been updat

153、ed to include this fee as of Q1 2019.2This account has no minimum required to establish an account,but had the account been fundedwithmoreassets,itwould,atcertainassetlevels,beeligible for a lower advisory fee.The lower advisory fee would have the result of increasing re?ected performance.3These acc

154、ounts were funded with more than the minimum amount required to establish anaccount.Thereisnofeeschedule;allaccountsarechargedthe same asset-based fee.Therefore,performance is not a?ected by the accounts asset level.4This account was funded with the minimum or more than the minimum amount required t

155、o establish an account at the time of opening.Had theaccount been funded with more assets it would,at certain asset levels,be eligible foraloweradvisoryfee.Theloweradvisoryfeewouldhavetheresultofincreasing re?ected performance.5This accountwasfundedwithmorethantheminimuminordertotakeadvantageoftax-l

156、ossharvesting.Tax-lossharvestingmayresultinbetterorworseperformance compared to similarly positioned accounts that are not enrolled in tax-loss harvesting.This account is enrolled in their digital-only“Intelligent Portfolios”,thus it is not charged an advisory fee.If one were toupgradeto“Intelligent

157、Advisory”whichintroducesaccesstoliveadvisors,asubscription fee would be levied,which would decrease re?ected performance.6These accountswerefundedwiththeminimumamountrequiredtoestablishanaccount.Atbalanceslessthan$10,000,thereisnoadvisoryfee.Hadtheaccount been funded with$10,000 or more,an asset-bas

158、ed advisory fee would be levied,which would decrease re?ected performance.7Theseaccountswerefundedwiththeminimumamountrequiredtoestablishanaccountatthetimeofopening.Thereisnofeeschedule;allaccountsarecharged the same asset-based fee.Therefore,performance is not a?ected by the accounts asset level.8T

159、hese accounts have no minimum required toestablishanaccount.PriortotheAxosandWisebanyanacquisitionandintegration,thisaccountwasnotcharged a management fee.Had additional service packages,such astax-lossharvesting,beenadded,thelesserofanasset-basedfeeor?atdollarfeewouldhave been assessed.These fees w

160、ould have decreasedthere?ectedperformance.Currently,thisaccountischargeda0.24%managementfee.InAugustof2021,there was a reporting issue with this provider.The issue has been resolved but the resolution e?ectively caused a rebalance of the account on09/30/2021.9This account was funded with the minimum

161、 investment amountatthetime.Atthetimeofopening,theaccounthada0.25%managementfee.Duetochanges in the service at the endofthe1stquarterof2017,newaccountsarechargeda0.30%managementfee.Thefeeonouraccountwasgrandfatheredin and remains at 0.25%.The higher advisory fee would have the result of decreasing r

162、e?ected performance.10These accounts were funded with the minimum amount required to establish an account.This account is enrolled in their digital-only“EssentialPortfolios”and is charged an asset-based advisory fee.If one were to upgrade to“Selective Portfolios”which introduces access to live advis

163、ors,ahigherasset-based advisory fee schedule would apply,which would decrease re?ected performance.“Essential Portfolios”doesnotappeartobeavailabletonewclients,likely due to the pending Schwab and TD Ameritradeintegration.Theseaccountsaregrandfatheredintothe“EssentialPortfolios”programandare charged

164、 a 0.30%annual asset-based management fee.11This account has no minimum required to establish an account,but had theaccountbeenfundedwithmoreassets,itwould,atcertainassetlevels,beeligible for a lower advisory fee.The lower advisory fee would have the result of increasing re?ected performance.A speci

165、al request was made for anallocation of 60%equities and 40%?xed income or close to it,but thisallocationwasnotoneofthestandardmodelsatthetimeofaccountopening.Atthe time of account opening the closest standard models o?ered were in the range of 50/50 or 75/25 equity to?xed income split.12These accoun

166、ts werefundedwithmorethantheminimumamountrequiredtoestablishanaccount.Duetotheasset-basedadvisoryfee,performanceisnot a?ected by the accounts asset levels.In previous reports,we reported the performance of two accounts that were combined to achieve a 60/40allocation.Due to our introductionofNormaliz

167、edBenchmarkingwearenolongerreportingthecombinedaccount,butjusttheaccountwiththeclosestto a 60/40 allocation as we could achieve at this provider.13These accounts were funded with less than the minimum investment through an agreement betweenTheRoboReportandtheprovider.Thereisnoadvisory fee levied reg

168、ardless of the amount of assets invested.2014This account was funded with the minimum amount required to establishanaccount.A?at,asset-basedadvisoryfeeisleviedontheaccount.Hadwesubscribed to additional,speci?c,providerproductstheaccountwouldbeeligibleforalowerasset-basedadvisoryfee.Aloweradvisoryfee

169、wouldhavetheresult of increasing re?ected performance.15This account has no minimum required to establish an account and is enrolled in the Digital Only plan.If the accountwasenrolledinthepremiumservice with access to live advisors,there would be a higher asset-based advisory fee.The higher advisory

170、feewouldhavetheresultofdecreasingre?ectedperformance.16This account is enrolled in the Self Service plan.IftheaccountwasenrolledintheFullServicePlan,thefeewouldbehigherorlowerdependingonthelevel of assets in theaccount.The higher/lower advisory fee would have the result of decreasing/increasing re?e

171、cted performance.Recently,this provider changed its feeschedule,but our account was grandfathered in at the previous,lower fee for the size of the account.New accounts would be subject to the new feeschedule,which would decrease re?ected performance at most account size levels.17This account was fun

172、ded with more than the minimum amount required to establish an account.This account will not be charged an advisory feethrough 2019.In previous reports,we reported the performance of two accounts that were combined to achieve a 60/40 allocation.Due to ourintroduction of Normalized Benchmarking we ar

173、e nolongerreportingthecombinedaccount,butonlytheaccountwiththeclosesttoa60/40allocationas we could achieve at this provider.18This account was funded with more than the minimum amount required to establish an account.This account will not be charged an advisory feethrough 2019.20This account was fun

174、ded withtheminimumrequiredtoestablishanaccount.Thisaccountisenrolledintheirdigital-only“IntelligentPortfolios”,thusit is not charged an advisory fee.If one were to upgrade to“Intelligent Advisory”which introduces access to live advisors,a subscription fee wouldbelevied,which would decrease re?ected

175、performance.21These accounts were funded with more than the minimum amount requiredtoestablishanaccount.Thereisnofeeschedule;allaccountsarechargedthe same asset-based fee.Therefore,performance is not a?ected by the accounts asset level.The fee was waived for the?rst year.Hadafeebeenlevied,re?ected p

176、erformance would have been lower.22These accounts were funded withmorethantheminimumamountrequiredtoestablishanaccount.Thereiscurrentlynofeeschedule;allaccountsarecharged the same asset-based fee.Therefore,performance is not a?ected by the accounts asset level.Previously,the fee was only assessedonb

177、alancesinexcess of$10,000.23These accounts were funded with the minimum amount required to establish an account.There is no fee schedule;allaccountsarechargedthesameasset-based fee.Therefore,performance is not a?ected by the accounts asset level.The fee was waived for an initialpromotionalperiod.Had

178、afeebeenlevied,re?ected performance would have been lower.24Interactive Advisors is registered as an advisor under thenameofCovestorLtd.andispartoftheInteractiveBrokersGroup.Thisaccountwasfundedwith the minimum required toopenanaccountandisinvestedintheirAssetAllocationportfolio.Itischargedanasset-b

179、asedfee.Thereisnofeescheduleon this account;therefore performance isnota?ectedbytheaccountsassetlevels.Previously,theaccountwaschargedalowerasset-basedfee;theincreasetook e?ect starting March 2019.Interactive Advisors o?ers multiple strategies withdi?erentsetsoffees,includingSmartBeta,index-tracking

180、andmodelETF portfolios,in addition to the Asset Allocation portfolios.Interactive Advisors also o?ers a marketplaceforactivelymanagedportfoliosforwhichitcharges higher fees(0.08-1.5%),part of which it remits to the portfolio managers supplying the data underlying those strategies.25Originally,there

181、was no advisory fee on these accounts.Had additional service packages,such as tax-loss harvesting,been added,the lesser of anasset-based fee or?at dollar fee would have been assessed.In June 2018,onepackagewasactivated,resultinginafeeontheseaccounts.Thisfeedecreasesthe re?ected performance.26This ac

182、count was enrolled in Prudentials Strategic Portfolios.It was funded with the minimum required to open an account.Hadtheaccountbeenfunded with more assets it would,at certain asset levels,be eligible for a lower advisory fee.The lower advisory fee would have the result of increasingre?ected performa

183、nce.Prudential also o?ers Reserve Portfolios for short-term investing,which have a lower account minimum and fee.However,theReserve Portfolios do not allow asset-allocation customization based on individual demographic and risk tolerance.27This account has no minimum required to establish an account

184、 and is enrolled in the Digital Only plan.If more was invested,theaccountwouldbeassessed alowerasset-basedfee,whichwouldincreasere?ectedperformance.Iftheaccountwasenrolledinthepremiumservicewithaccesstoliveadvisors,there would be a higher asset-based advisory fee.The higher advisory feewouldhavether

185、esultofdecreasingre?ectedperformance.Allbalancesabove$2million are charged a lower asset-based advisory fee.A loweradvisoryfeewouldhavetheresultofincreasingre?ectedperformance.The2018end-of-yearstatement for Betterment did not include dividends received near the end of 2018,these dividends?rst appea

186、red on the March 31st,2019 statement.21These dividendsarere?ectedasoftheQ12019RoboReportbutwerenotre?ectedinperformancereportedintheQ42018RoboReport.InQ22020adividend was misattributed to the cash asset class instead of income causing the equity performance of the main Betterment account to be sligh

187、tlyunderrepresented.28These accounts were funded with the minimum amount required to establish an account.There is no fee schedule;allaccountsarechargedthesameasset-based fee.Therefore,performance is not a?ected by the accounts asset level.The fee was waived for an initialpromotionalperiod.Hadafeebe

188、enlevied,re?ected performance would have been lower.As of March 27,2019,the management fee has been lowered.Theloweradvisoryfeewillincreasere?ected performance.29This account was funded with the minimum or more than the minimum amount required to establish an account at the time of opening.Hadtheacc

189、ount been funded with more assets it would,at certain asset levels,be eligible foraloweradvisoryfee.Theloweradvisoryfeewouldhavetheresultofincreasing re?ected performance.After opening,this provider changed its fee schedule,raising the fee for the assetleveloftheaccount,butouraccountwas grandfathere

190、d in at the previous,lower fee.New accounts would be subject to the new fee schedule,which may change re?ected performance.30Theseaccountswerefundedwithmorethantheminimumamountrequiredtoestablishanaccount.Theaccountischargeda?atdollarfeesubscriptionat its service level.Had the accounts been enrolled

191、 in di?erent service packages,they could be assessed a higher subscription fee.Becausethefeeisa?atdollar amount,a higher account balance wouldhavetheresultofincreasingre?ectedperformance,whilealoweraccountbalancewouldhavetheresultofdecreasing re?ected performance.31These accounts were funded with th

192、e minimum amount required to establish an account at the time of opening.This account is enrolled in theirdigital-only“GuidedInvesting”andischargedanasset-basedadvisoryfee.Ifoneweretoupgradeto“GuidedInvestingwithanAdvisor”whichintroducesaccess to live advisors,a higher asset-based advisory fee sched

193、ule would apply,which would decrease re?ected performance.32This account has no minimum required to establish an account and is enrolled in the Digital Only plan.If the accountwasenrolledinthepremiumservice with access to live advisors,there would be a higher asset-based advisory fee.The higher advi

194、soryfeewouldhavetheresultofdecreasingre?ectedperformance.All balances above$2 million are charged a lower asset-based advisoryfee.Aloweradvisoryfeewouldhavetheresultofincreasingre?ectedperformance.33This account has no minimum required to establish an account and is enrolled in the Digital Only plan

195、.If the accountwasenrolledinthepremiumservice with access to live advisors,there would be a higher asset-based advisory fee.The higher advisoryfeewouldhavetheresultofdecreasingreflectedperformance.Prior to August 2020,this accountwasassesseda0.35%annualmanagementfee AsofAugust2020,theproviderchanged

196、thefeestructuresuch that accountsunder$10,000arenotchargedamanagementfee.Ouraccountisunderthisthresholdandwillthereforenotbechargedamanagementfee starting in August of 2020.This will have the result of increasing re?ected performance.34This account was funded with morethantheminimumrequiredtoestabli

197、shanaccount,Thereisnomanagementfeelevied.Therefore,performanceisnot affected bytheaccountsassetlevel.Thisplatformhasnumerousdifferentportfoliostrategies.Wechosethe“moderatelyaggressive”strategy.Differentportfolio strategies have different allocations which could increase or decrease reflected perfor

198、mance.35These accounts were funded with the minimum amount required toestablishanaccount.Thisaccountisenrolledintheir“SelectivePortfolios”andischarged an asset-based advisory fee.These specificportfoliosareonlyofferedatthe“SelectivePortfolios”level,whichchargesahigherasset-basedadvisoryfee due to ac

199、cess to live advisors than the“Essential Portfolios.”Additionally,theseportfoliosmayholdbalancedfunds.Duetothenatureofthesefundsand limits in our portfolio management system,we cannot accurately track equity and fixed income performance individually at the portfolio level forportfolios with balanced

200、 fund holdings.Total portfolio performance is unaffected by holding balanced funds.36These accounts were funded with more than the minimum amount requiredtoestablishanaccount.Thereisnofeeschedule;allaccountsarechargedthe same asset-based fee.Therefore,performance is not affectedbytheaccountsassetlev

201、el.Thisplatformhasnumerousdifferentportfoliostrategies.Wechose the“60/40 classic”option.Different portfolio strategies have different allocations which could increase or decrease reflected performance.37These accounts were funded with the minimum amount required toestablishanaccount.Thisaccountisenr

202、olledintheir“SelectivePortfolios”andischarged an asset-based advisory fee.These specificportfoliosareonlyofferedatthe“SelectivePortfolios”level,whichchargesahigherasset-basedadvisoryfee due to access to live advisors than the“Essential Portfolios.”38These accounts were opened when the provider charg

203、ed 0.25%annual management fee.Recently,the fee structure changed to be a?atmonthlyfee.However,our account was grandfathered into the old feestructure.Thischangemayhavetheresultofincreasing/decreasingre?ectedperformancebasedon account size.39This account chargesa0.15%annualmanagementfeeandcapstheunde

204、rlyingfundfeesat0.05%sothattheall-infeeneverexceeds0.20%annually.Thesame fee is charged at all asset levels.40This account charges0.55%annually.However,thosewithaCitiGoldorPriorityaccount(requiredbalancesof$50,000and$200,000respectively)willnot be charged a management fee,which would increase re?ect

205、ed performance.41This account is enrolled in the“Standard”pricing plan for$120 a year which is paid by an outside bank account.This account was opened with a$5,000 initial deposit.We assess the fee on the account as though it was opened with a$50,000 initial deposit.We assess a$1 monthly,$12 a year,

206、22management fee on this account.A?at dollar fee pricing structure means the level of assets in the account will a?ect net-of-fee performance.42These accounts were funded with more than the minimum amount required to establish an account.The account is charged a?at dollar feesubscription.Because the

207、 fee is a?at dollar amount,a higher account balance would have the result of increasing re?ected performance,while a loweraccount balance would have the result of decreasing re?ected performance.43This account was funded with the minimum or more than the minimum amount required to establish an accou

208、nt at the time of opening.Had theaccount been funded with more assets it would,at certain asset levels,be eligible foraloweradvisoryfee.Theloweradvisoryfeewouldhavetheresultofincreasing re?ected performance.On June 19th,2017,Vanguard removed the Robo Reports primary Vanguard account from the Vanguar

209、d PersonalAdvisor Services program.As of June 20th,2017,the primary account was replaced by a secondary account with the same risk pro?le as the primaryaccount.The returns for the secondary account have been linked to the original primaryaccount.Assettypeandallocationbetweenthetwoaccountsatthe time

210、of the switch were very close but not identical.44These accounts were funded withmorethantheminimumamountrequiredtoestablishanaccount.Thereiscurrentlynofeeschedule;allaccountsarecharged the same asset-based fee.Therefore,performance is not a?ected by the accounts asset level.Previously,the fee was o

211、nly assessedonbalancesinexcess of$10,000.In the 1st Quarter of 2018 Wealthfront liquidated thepositionsintheaccountusedforthe4thQuarter2017andpreviouseditionsofthis report.A di?erent account wasusedforthisreportandislabeled“Wealthfront(Risk4.0)”.Theperformancenumbersfromthepreviousaccountareavailabl

212、e in the addendum labeled as“Wealthfront(Risk 3.0)”.The risk scores and thusallocationsofthetwoaccountsaredi?erentandlabeledassuch.Asset type and allocation between the two accounts atthetimeoftheswitchwereclosebutnotidentical.Thedi?erenceinequityallocationbetweentheaccounts on 12/31/2017 was approx

213、imately 5.4%.45These accounts were funded with the minimum amount required to establish an account.This account is enrolled in their digital-only“EssentialPortfolios”and is charged an asset-based advisory fee.If one were to upgrade to“Selective Portfolios”which introduces access to live advisors,ahi

214、gherasset-based advisory fee schedule would apply,which would decrease re?ected performance.Due to the down market in December 2018,this accountengaged in repeated tax-loss harvesting on one of its asset types.All alternative securities were exhausted forthisassettype,sotopreventawashsale,theentire

215、position,representing approximately 31%of the portfolio,was liquidated and held as cash for a 1 month period,during which time the marketexperienced a large upswing.Because this portfolio missed the market upswing,its performance versus the normalized benchmark is lower.In previous reports,theinitia

216、ltargetassetallocationwascalculatedastheassetallocationattheendofthe?rstmonthaftertheaccountwasopened.IntheQ3 2018 report,we adjusted our method to calculate the initialtargetassetallocationasoftheendofthetradingdayafterallinitialtradeswereplacedinthe accounts.This adjustment has caused someportfoli

217、osinitialtargetallocationtobeupdatedfrompreviousreports.Theseupdatesdidnotchangeanyinitial target allocations of equity,?xed income,cash,or other by more than 1%.Prior to Q3 2018,due to technological limitations of our portfolio management system,someaccountswhichcontainedfractionalshareshadmisstate

218、dthe quantity of shares when transactions quantities were smaller than 1/1000th of a share in a position as a result of purchases,sales,or dividendreinvestments.This had a marginal e?ect onthehistoricalperformanceoftheaccounts.Theroundingofpositionquantitiescausedbythislimitationhasbeen resolved,and

219、 quantities have been adjusted to re?ect the full position to the 1/1,000,000th of a share as of the end of Q3 2018.Therefore,thisrounding of fractional shares will not be necessary in the future.At certain custodians,a combination of the custodian providing us a limited number of digits on fraction

220、al share and fractional cent transactionsrounding errors are introducedintoourtracking.Atquarter-endstarting3/31/2020,weimplementedaprocesstoentersmalltransactionstoeliminateany rounding errors that have built up to more than a full cent.These transactions are small and do not haveanappreciablee?ect

221、onperformance.Sharpe ratios and Standard Deviation calculations are calculated with the assumption of 252 trading days in a year.This reportrepresentsDigitalAdviceLLCsresearch,analysisandopiniononly;theperiodtestedwasshortindurationandmaynotprovideameaningfulanalysis;and,there can be no assurance th

222、at the performance trend demonstrated by Robos vs indices during the short period will continue.DigitalAdviceLLCisownedbyCondorCapitalWealthManagement,anSEC-registeredinvestmentadviser.AcopyofCondorsDisclosureBrochureisavailableat .Condor Capital holds a position in Schwab,JP Morgan Chase,and Goldma

223、n Sachs inoneofthestrategiesusedinmanyoftheir discretionary accounts.As of 12/31/2022,the total size of the position was 38,584 shares of Schwab common stock,23,189 sharesofJPMorganChase common stock,and 5,722 shares of Goldman Sachs common stock.As of 12/31/2022,accounts discretionarily managed by Condor CapitalManagement held bonds issued by the following companies:Morgan Stanley,Bank of America,Goldman Sachs,Wells Fargo,E*Trade,Citi Group,JPMorgan Chase,Citizens Financial Group,Ally Financial,Charles Schwab,and Capital One.23For more information,please contact us at Connect with us at: