Robo-advisors with greater investments in domestic, large-cap and growth equities have significantly outperformed their peers over the past year, according to the Third Quarter 2024 Robo Report, recently released by Condor Capital Wealth Management.
Portfolios centered on domestic large-cap equities also have done better in the longer term, according to the report, which contains data through Sept. 30.
A strategic focus on domestic large-cap equities and municipal bonds drove superior performance over the past three years, and a strong U.S. market led portfolios emphasizing domestic large-cap equities to consistently outperform over the past seven years, the Robo Report found.
Longer-duration bonds enhanced fixed income performance over the past year, while high-yield bonds drove fixed income outperformance over seven years, Condor Capital said.
The Robo Report tracks performance, fees and other metrics of 35 accounts on 25 different digital advice platforms.
The report noted changes in the robo-advice industry this year, including the wind-down of platforms from Goldman Sachs and JPMorgan Chase, along with Betterment’s decision to revamp its premium plan by adding benefits and increasing its management fee.
“Both the increased fee at Betterment and the shuttering of the Goldman Sachs and JP Morgan Chase robo offerings represent the difficulty of offering advisory services at rock-bottom prices while earning meaningful profits for the provider,” the report said.
Check the gallery for the top 10 robo-advisors based on year-to-date returns in 60% stock-40% bond portfolios, fees included, through Sept. 30, according to data from Condor Capital.
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