Investing and Robo Advice

Thought I would make a few comments on an article I just read at Kiplinger concerning Robo rate of returns

Robo Portfolio

I was shocked to read that the major brokerage firms that offer a Robo Adviser had a very poor showing when it came to the annual rate of return for their services. Ranging from a low as 6.01 to only a high of 7.61 %.

The data covered three years ending September 30, 2019.

You would have been much better off buying S&P 500 ETF (SPY) which closed the past year at 28.88 % and it’s rate of return annualized over the past three years standing at 15.81 %.

All the major firms charged a fee ranging from $12 a year to 0.45 % of the portfolio assets.

Dan