|Firm||Fees On $250,000||Trading Fee Estimate||Weighted Average Tracking Difference||Munis Tax Savings 25% Tax Bracket||Asset Location Benefit Estimate||Net Cost/Savings Estimate|
The overall robo-advisor costs are low enough to support any choice my son makes on robo-advisor asset allocation, though he'd have to be really keen on Invessence's or FutureAdvisor's philosophies to choose them over freebie WiseBanyan or tax-efficient Wealthfront and Betterment.
Putting It All Together
At ETF.com, we recommend investors first pinpoint the economic exposure they want, focusing on funds that select and weight securities to best meet their goals. Next, we suggest investors consider the costs of all appropriate funds. But we never suggest investors choose unsuitable funds on the basis of cost.
You should choose a robo advisor the same way.
Here's a table summarizing everything we've learned so far about the robo 60/40 portfolios.
|Wealthfront||HNW investors seeking investment committee guidance||Tax benefits cover fees & tracking costs|
|Betterment||HNW investors looking to mimic the markets||Tax benefits cover fees & tracking costs|
|FutureAdvisor||Factor investors||Highest fees|
|cCvestor||Emerging markets enthusiasts||No fees, but moderate tracking costs|
|WiseBanyan||Low-tax-bracket growth investors||Very low cost|
|Invessence||U.S.-centric investors||Highest overall costs|
HNW = High Net Worth