Our platforms include the most well-known robo advisors, such as Betterment, Wealthfront, Acorns, SoFi, Personal Capital, Vanguard's Digital Advisor, Schwab's Intelligent Portfolios, and Wells Fargo's Intuitive Investor.īecause these REITs are publicly traded on the same markets as equities, they tend to be subject to the same factors that cause stocks to move up and down. ![]() Data for robo advisor performance was pulled from our own proprietary robo advisor index. Most investors using robo advisors are doing so to invest in the stock market. This is predictable, considering robo advisors sell funds and indices that aren't too dissimilar from the S&P 500. Of those, robo advisors predictably had one of the highest correlation coefficients at 0.9345. While that doesn't necessarily mean they aren't great diversification tools for other reasons, it does mean that they might not offer as much recession protection as other asset classes. Strongly correlated assets-those with a correlation coefficient of 0.75 or greater-tend to follow stock market patterns. Most investment assets are correlated with the stock market.
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