Schwab Intelligent Portfolios was the top performing robo-advisor for the third quarter, according to BackEndBenchmarking’s latest Robo Report, which tracks the performance of a 60/40 stock/bond portfolio for investors in a high tax bracket.
Its model portfolio for taxable accounts outperformed comparable portfolios of 19 other robos, gaining 3.97% in the third quarter, according to The Robo Report, which actually invests in the model portfolios it analyzes.
Betterment placed second for the third quarter followed by SigFig and SoFi, which tied for third place, but it led the competition for one-year performance ended Sept. 30, up 11.97%. Schwab was just behind, with an 11.93% return for its model portfolio.
TD Ameritrade led performance year to date through Sept. 30, up 11.81%.
(Related: Vanguard Is Way Ahead in the Robo Race)
Schwab Intelligent Portfolios, with roughly $23 billion in assets, is the second largest robo-advisor after Vanguard Personal Advisor Services, which has more than $80 billion in assets.
In addition to its outperformance for the third quarter, the Schwab model portfolio was also the least risky, based on its standard deviation and Sharpe ratio for the year ended Sept. 30. It had the lowest standard deviation and highest Sharpe ratio, which topped 3, a level considered “excellent.”