For younger generations in the United States, robo advisories have provided a solution to the complication of the stock market. Millennials are drawn to the ease that these services allow. The pandemic allowed unique robos to shine while those with more traditional holdings floundered. The robo industry is valued at more than US$680 billion in the US, and it’s only looking up from here. Worldwide, the industry is expected to grow to nearly $1 trillion in 2020.
On that note, let’s take a look at some of the options available in the USA.
One of the best performing robo in the US is Titan Invest. Founded in 2018, Titan now has over $58 million in assets under management. With a sleek mobile app and $0 minimum deposit, Titan is making waves.
Titan follows a unique investment strategy; they choose stocks called compounders and hold onto them. This proved especially fruitful during the economic downturn. It saw the best one period return, 8.02%, when the S&P 500 was down nearly 14%. Titan focuses on equities, which may have aided their performance.
As a historically strong performer, it was no shock that SigFig weathered the storm. Founded in 2007, SigFig shines with its advisor access and low management fees. It does have a $2000 minimum investment, which is higher than average.
SigFig has focussed its international holdings on emerging markets, rather than developed ones. While this strategy is unique, it has proven successful. They also allocated their total stock market ETFs towards large-cap stocks. As an important part of the US economy, this was another smart choice for SigFig.
If there’s one thing that’s certain, it’s that robo-advisors are here to stay. As people become more and more comfortable with technology, the need for traditional advisory will become obsolete.
On the other hand, we can look forward to the launch from Goldman Sachs, one of the biggest and oldest players in the investment landscape. While the firm had planned to introduce its new service this year, this has been pushed back to 2021. This decision came from the economic downturn due to Covid-19.
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