New Robo Ranking Launched from Backend Benchmarking, Publishers of The Robo Report

Uses Normalized Benchmarking to Rank Leading Robo Advisors

MARTINSVILLE, NJ / ACCESSWIRE / August 27, 2018 / The first Robo Ranking(™) has been launched by Backend Benchmarking(™), publishers of The Robo Report(™), the first and only report on the performance and portfolios of leading robo advisors. The new Robo Ranking uses a new methodology of normalized benchmarking to rank the 10 leading robo advisors.

“We are excited to offer a comprehensive system to rank top robo advisors for which we have two or more years’ performance,” said Ken Schapiro, Founder of Backend Benchmarking.

The Robo Ranking ranks Vanguard, Betterment, SigFig, E*Trade, Schwab, Intelligent Portfolios/Intelligent Advisory, Wealthfront, WiseBanyon, Personal Capital, FutureAdvisor and Acorns.

The robo advisors were ranked on a comprehensive set of criteria. The final robo score was made up of a qualitative review of their services, platform, company, and features, as well as a quantitative score based primarily on the costs and performance of the portfolio. A small portion of the quantitative score is based on the size and tenure of the robo advice product. When scoring the qualitative aspect of the service, the Report looked at six main criteria: financial planning, user interface and customer experience, product features, access to live advisors, transparency and conflicts of interest, and account minimums.

“We wanted a way to distill a lot of different data on the top 10 robo advisors into a simple scoring system that made it easier for investors to draw on conclusions,” said David Goldstone, Research Analyst.

Normalized Benchmarking is a method to compare portfolios with differing equity and fixed income allocations. The percentage allocated to equities in a portfolio is one of the largest drivers of returns. Because of this, comparing two portfolios that have a different level of equity allocation is difficult and can be misleading. Normalized Benchmarking controls for differences in equity holdings by adjusting the benchmark to match the equity/fixed income ratio of the portfolio. When this is done across a group of portfolios, the portfolios can then be measured against each other by their return above or below the benchmark specific to the portfolio.

To get a first-hand understanding of how the providers operate and invest, Backend Benchmarking opened and funded portfolios seeking a similar asset allocation to allow for comparison. The knowledge of the underlying assets held helps to understand the structure of the portfolio, the risk, and what is driving performance.

This Ranking represents Backend Benchmarking’s research, analysis, and opinion only; the period tested was short in duration and may not provide a meaningful analysis. There can be no assurance that the performance trend demonstrated by robos vs. indices during the short period will continue.

The Robo Ranking™ is available for free currently at https://theroboreport.com/robo-rankings/ . Follow the Ranking on Twitter @theroboreport. For more information, contact Backend Benchmarking™ at info@backendb.com.

Contact:

Bill Bongiorno
Blue Chip Public Relations, Inc.
914-882-5594
www.bluechippr.com
Bill@bluechippr.com

SOURCE: Backend Benchmarking

ReleaseID: 510821