Inside Robo Advisor Asset Allocation

August 22, 2014

Sector Breakdown

  Wealthfront Betterment Future Advisor Covestor WiseBanyan Invessence VT
  60% 90% 60% 90% 60% 90% 60% 90% 60% 90% 60% 90%  
Basic Materials 5.2% 6.7% 6.0% 6.5% 5.7% 5.8% 5.2% 6.0% 4.4% 6.0% 4.4% 4.6% 6.0%
Consumer Cyclicals 12.3% 11.2% 11.6% 11.3% 8.9% 8.9% 11.1% 10.8% 11.6% 10.8% 12.0% 11.8% 12.6%
Consumer Non-Cyclicals 10.7% 9.6% 9.4% 9.4% 7.0% 6.9% 8.3% 8.4% 8.2% 8.4% 8.5% 8.4% 9.1%
Energy 9.8% 9.8% 9.2% 8.9% 9.1% 8.8% 9.3% 9.1% 8.3% 9.1% 10.1% 10.0% 9.5%
Financials 18.4% 22.7% 22.3% 23.8% 34.8% 36.1% 26.7% 27.7% 28.9% 22.6% 19.6% 20.0% 21.5%
Healthcare 9.8% 8.2% 10.2% 9.5% 7.3% 7.1% 8.5% 8.0% 9.4% 10.2% 10.4% 10.2% 9.7%
Industrials 13.8% 12.1% 13.1% 13.0% 10.1% 10.3% 10.9% 11.1% 11.5% 13.1% 12.4% 12.3% 13.3%
Technology 13.1% 11.5% 9.4% 8.8% 9.3% 8.5% 12.6% 11.0% 11.3% 11.8% 15.6% 15.5% 11.3%
Telecommunications 3.6% 4.7% 4.1% 4.2% 4.1% 4.1% 4.0% 4.3% 3.2% 3.5% 3.3% 3.4% 3.7%
Utilities 3.1% 3.4% 4.5% 4.4% 3.5% 3.5% 3.1% 3.3% 3.0% 3.3% 3.3% 3.3% 3.3%

 

Robo-Advisor Fixed-Income And Commodity Portfolios

Ticker Bond & Commodity Fund Name Wealthfront Betterment Future Advisor Covestor WiseBanyan Invessence
    60% 90% 60% 90% 60% 90% 60% 90% 60% 90% 60% 90%
AGG iShares Core U.S. Aggregate Bond             24.2% 9.4%        
SCHZ Schwab U.S. Aggregate Bond         11.0% 3.3%            
MUB iShares National AMT-Free Muni Bond 35.0% 5.0% 23.5% 5.5%                
MLN Market Vectors Long Municipal                     18.1%  
ITM Market Vectors Intermediate Municipal                     1.8%  
SHM SPDR Nuveen Barclays Short Term Municipal Bond                     1.8%  
LQD iShares iBoxx $ Investment Grade Corporate Bond     2.3% 0.6%         14.0% 3.5%    
VCLT Vanguard Long-Term Corporate Bond                     1.8% 1.5%
JNK SPDR Barclays High Yield Bond                     7.6% 1.6%
PFF iShares U.S. Preferred Stock                     1.8% 1.9%
VGIT Vanguard Intermediate-Term Government Bond                 10.0% 2.5%    
SHY iShares 1-3 Year Treasury Bond                       0.3%
IEF iShares 7-10 Year Treasury Bond                       0.3%
TLT iShares 20+ Year Treasury Bond                       0.4%
TIP iShares TIPS Bond             4.4% 4.4% 8.0% 2.0%    
VTIP Vanguard Short-Term Inflation-Protected Securities         18.0% 5.4%            
BNDX Vanguard Total International Bond     9.0% 2.4% 11.0% 3.3%            
VWOB Vanguard Emerging Markets Government Bond     5.2% 1.6%                
EMLC Market Vectors Emerging Markets Local Currency Bond                   1.8% 0.8%
DJP iPath Dow Jones-UBS Commodity Total Return ETN 6.0%           5.0%          
IAU iShares Gold Trust   5.0%           5.0%     4.6%  
Cash               0.5% 0.7%     2.1% 1.0%
                           

Total Weight

41.0% 10.0% 40.0% 10.1% 40.0% 12.0% 34.2% 19.6% 32.0% 8.0% 41.1% 7.8%

Duration, Yields And Credit-Spread Durations

  Wealthfront Betterment Future Advisor Covestor WiseBanyan Invessence AGG
  60% 90% 60% 90% 60% 90% 60% 90% 60% 90% 60% 90%  
Effective Duration 6.7 6.7 6.8 6.8 4.2 4.2 5.5 5.8 6.9 6.9 8.4 8.6 5.2
YTM 3.05% 3.05% 2.87% 2.89% 1.30% 1.30% 2.03% 1.97% 2.33% 2.33% 4.44% 4.75% 2.09%
Credit-Spread Duration 6.4 6.4 5.9 5.9 2.1 2.1 3.1 2.5 3.5 3.5 7.6 1.2 3.6

 

At the time this article was written, the author held no positions in the securities mentioned. Contact Elisabeth Kashner, CFA, at [email protected].

 

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