2022S BEST ROBO-ADVISORS STOCK AND BOND FUND

Robo-advisors are enabling more individuals to save, invest, and grow their money towards financial freedom by providing more accessible investment and money management options at a fraction of the cost historically associated with traditional models. The process of selecting a Robo-advisor can be challenging as there are many variables to consider in order to give you a holistic view of your financial situation as well as keep you on track to achieve your financial goals in the midst of turbulent market conditions. In order to make things simple, this unbiased, comprehensive comparison of the top Robo-advisors is based on a proprietary rating methodology that measures cash management, goals planning tools, fees, portfolio management, mobile functionality, socially conscious investing, and portfolio construction, among other factors.
The Advantages And Disadvantages Of Using A Robot Advisor
Pros    Cons
⦁    It is important to note that automated investment advisors are based on principles of sound financial management laid out in Modern Portfolio Theory and further research by economists such as Eugene Fama and Robert Shiller
⦁    Portfolio management by automation eliminates tedious tasks such as rebalancing and ensuring proper asset allocation.
⦁    The cost of using a Robo-advisor is lower than that of a traditional advisor
⦁    Investors can clarify and reach their goals with powerful goal planning and analysis features offered by some Robo-advisors
    ⦁    When it comes to extracting important information concerning your personal and financial situation, robot advisors are not as adept as human advisors
⦁    It should be noted that Robo-advisors remain essentially a form of self-directed investing in that your primary responsibility is to provide the model with all the necessary information and to keep to the scheduled deposits.
⦁    The tax optimization strategy of many Robo-advisors is often portfolio specific and the service provided is less comprehensive than that of a human advisor.
What Is The Best Amount To Invest?
For Robo-advisors, there is a range of minimum account balances. It is true that there are some Robo-advisors that do not require a minimum investment, such as Betterment, SoFi Automated Investing, and Blooom, however, some of them do not allow you to open the account until you have reached a predetermined amount of cash. The minimum account opening amount varies from $10 to $100,000, with the exception of a small number of Robo-advisors that are free of charge. It is recommended that you invest at least $100 in Robo-advisors, even if there is no account minimum, in order to ensure your money is invested in the market. It is then important to contribute more investment dollars on a regular basis.
What Is The Cost Of Using A Robo-Advisor?
The typical fee charged by a robot advisor is less than 0.5% of the assets under management. This is a considerable reduction from the traditional fees charged by human advisors. There will be a closer alignment between those 0.50% and the premium offerings of those platforms which are divided into basic and premium. In comparison to this line, only Personal Capital exceeds it, but it is specifically designed for high-net-worth investors and is capable of diversifying and managing their portfolio by making direct asset purchases rather than relying on ETFs as a means of investing. For wealthy investors seeking to automate their portfolios, this feature may well justify the higher fee.  Putting this into perspective, a traditional human advisor will typically charge more than double what a Robo-advisor does at 1% or more. It is important to note that both Robo and human advisors are limited by the information you provide regarding your personal circumstances and financial needs.
The following is our list of the Best Robo Advisers for 2022. Please scroll down to learn how to evaluate and rank these services.
Schwab Intelligent Portfolios
Schwab's Robo-advisor program is held back by problematic cash allocations. There are several strengths to portfolio construction. Investors are matched with portfolios based on their risk tolerance through an extensive questionnaire. Among the asset classes included in the portfolios are U.S. and international large- and small-cap stocks, REITs, corporates, mortgages, high yield, municipal bonds, worldwide bonds, emerging markets debt, and Treasuries. Schwab's portfolio construction, rebalancing, and tax management are thoughtful. It charges no advisory fee, but its underlying funds have an average expense ratio of 0.20%. Amidst resurgent inflation and low bond yields, the portfolios all invest in low-yielding in-house cash allocations, weighing down returns. The most aggressive portfolios allocate 6% of assets to cash, while conservative portfolios allocate 29.4%. Schwab's fee model is transparent, but payments are not. For investors with at least $5,000 in assets, Schwab's portfolios are nominally "free," but those who are enticed by the offer may not realize that Schwab is generating revenue from the cash portion of their portfolio. Schwab receives the spread between the revenue it earns on asset balances in Schwab Bank and the yield it pays investors. A CFP designation is available to investors with at least $25,000 in assets. There are a variety of online tools for calculating income, expenses, investments, college savings, and retirement planning. A comprehensive retirement income solution is also offered by the Robo-advisor. Investors can schedule recurring withdrawals from both taxable and tax-deferred accounts, such as IRAs, using the program. Customers can take advantage of economies of scale as their asset balances increase by taking advantage of the premium service's flat fee structure. In year two, investors pay just $360 annually following a $300 planning fee. Betterment and Fidelity offer similar products at a lower price for individuals with balances of $90,000 or more.
Vanguard Digital Advisor Services
Since 1996, Vanguard has offered advice but declined to expand into discretionary asset management until May 2015 and May 2020, respectively. As Vanguard continues to invest heavily in both services through adding capabilities and hiring personnel, it is aiming to transform advice in the same manner that index funds revolutionized investment management. It is expected that Vanguard will add environmental, social, and governance options to VDA in 2022 and tax loss harvesting to PAS in 2023. Apart from that, both services have numerous features associated with top Robo-advisors. Investors can select among competing financial priorities with a next-dollar optimizer from VDA, for example. Due to the $3000 minimum, VDA is less accessible than others. The 0.20% fee, which includes advisory and underlying ETF fees, is very competitive and doesn't depend on waivers. Customization and simplicity are key to VDA's portfolio construction. A well-researched set of scenarios was used for the risk-tolerance assessment, which was not created in-house but rather by third-party Capital Preferences. Portfolios are evaluated daily and rebalanced when asset classes are more than 5 percentage points off target. Every year, glide paths are updated based on model inputs. Investment minimums start at $50,000 and advisory fees begin at 0.30%. Vanguard assigns clients a dedicated CFP once their assets exceed $500,000, after which they can choose from a pool of CFPs. A standard portfolio of PAS will include four total market ETFs; however, clients will also have the option of investing in Vanguard's three new Advice Select active strategies, which are managed by two of the Company's most trusted sub-advisors.
Betterment
Launched in 2008, is one of the original Robo-advisors to challenge traditional investment managers. Betterment offers a seamless signup experience with no account minimum to attract new investors. Goals can be set, progress can be monitored, and planning tools are straightforward. Betterment Checking and Cash Reserve accounts are insured by the FDIC and offer similar transaction functionality as traditional banks. Each account has its own investment strategy that ensures you stay on track with many goals and time horizons. Besides linking external accounts to Betterment's platform, financial tools are also available to give you a holistic view of your finances. A human advisor is available for an additional fee on Betterment although it is built with a digital-first approach. As part of their financial offering, Betterment offers a checking account and savings option. The system will also alert you when your cash reaches certain thresholds so that you're adequately invested. Besides managing your investments, Betterment offers a broader sense of investing in the world.
SoFi Invest
As a company specializing in student loan refinancing and personal loans, SoFi began as a company called "social finance". The company has since expanded into several other areas of personal finance, such as investment accounts, checking accounts, and savings accounts. The recent approval of the company's application for a national bank charter by the Office of the Comptroller of the Currency (OCC) has also contributed to the increase in its stock price. SoFi acquired Golden Pacific Bancorp, Inc., a California-based community bank, months ago. Investing in SoFi is also a great option if you have other SoFi accounts. The reason for this is that SoFi makes it very convenient to move money between the accounts of SoFi Money and SoFi Invest. SoFi does not offer stop-loss orders or tax-loss harvesting, which may make it unsuitable for more advanced investors. As an alternative, if you are simply interested in investing, SoFi has all you need, along with free access to Certified Financial Planners. Residents of other countries may wish to choose another brokerage firm instead of SoFi, which is currently available only to residents of the United States.
Blooom
Blooom is a Robo-advisor platform for employer-sponsored retirement accounts that offers a human-assisted experience. Blooom does not actually hold assets for you. Rather, Blooom works directly within your employer's retirement plan (like a 401(k) or 457 plan) and aims to optimize your holdings by connecting directly to your retirement plan. It is possible to implement a customized portfolio of funds into your Blooom account for $120/year. There is no charge for the fee analysis-only plan. The company's top-priced paid plan includes unlimited accounts and one-on-one guidance from an in-house financial advisor every year for a one-time fee of $395.
Wealthfront
Wealthfront launched in 2008 and became a pioneer in the Robo-advisor space by providing an exemplary digital portfolio management experience. In addition to daily tax-loss harvesting, Wealthfront offers a fully digital experience. A 0.25% portfolio management fee paired with Goals, Self Driving Money, and financial planning tools can be obtained through Wealthfront. Wealthfront offers one of the strongest overall Robo-advisor offerings due to its competitive price point and high-quality platform. Account aggregation is one of Wealthfront's most powerful features. Financial planning, goal setting, and progress tracking tools are all at your fingertips with this feature. Helping you achieve financial success through such comprehensive goal support is crucial. Since Wealthfront adjusts according to your personal financial situation, this aspect is unique to you. In addition to checking accounts and spending options, Wealthfront offers many other financial products. Automated transfers, mobile deposits, and direct deposits. The investment management product does not require you to use this. For users with a minimum investment of $25,000, a line of credit is available. The company says it is more than just an automated portfolio manager and is an all-in-one financial solution. 
Ellevest
The Ellevest fund was created for women, by women. It's simple and easy to take control of your finances with Ellevest because there are no minimum investments, no advisory fees, and low membership fees. It is important to note that while the platform is mainly designed for women, taking into account the gender-specific issues of salary gaps, career breaks, and longer life expectancy, it is open to all investors. Investing on the Ellevest platform is a good starting point for new investors. Investors can choose an affordable membership level based on their needs, whether it's basic investing, retirement investing, or multi-goal investing. Ellevest's basic account does not feature goal planning or retirement accounts, but its Executive account has features that make it competitive with major competitors. Taking into account salary gaps, career breaks, and life expectancy, this Robo-advisor also provides a unique forum for women. A lack of extra benefits at the higher tiers may leave Executive members feeling underwhelmed, and it is unclear when portfolio rebalancing occurs and how the metrics are used to measure portfolio deviations. Due to the fixed nature of Ellevest's membership fee, the Robo-advisor becomes more cost-competitive with higher account balances.
M1 Finance
Founded in 2015, M1 Finance entered the Robo-Advisor space in 2021 and achieved $5 Billion in assets under management, highlighting continued user growth. A unique credit card product was added to M1's premier Plus tier in 2021 alongside other spending and borrowing products. Aside from M1's wide range of portfolio customization options and investment vehicles, it also excels at cost containment with no trading or account management fees. In spite of other minor miscellaneous fees for specific account management requests, M1's focus on driving down costs leaves investors with more money. This platform has limited financial calculators and goal-setting options. Human investment consultants are not available if that is important to you. Self-directed investors can automate some of the investment management processes without sacrificing flexibility and control with M1 Finance. Along with portfolio customization features, M1 offers a credit card, a spend option, and a smart transfer tool that helps allocate excess cash. The Robo-advisor's commitment to cost containment and reduction is essential to keeping fees from eating into your return.
SigFig
In spite of its lean offering and lack of resources, SigFig checks all the right boxes for a Robo-advisor. After its 2006 launch as Wikinvest, an online investment forum, SigFig has evolved into a company with capabilities that are still ahead of most of its competitors. In 2011, the firm pivoted toward automated investment advice and cultivated a team of financial advisors. The company also introduced tax-advantaged and taxable portfolios. The overall fee for SigFig is below the median for Robo-advisors. There is no charge for accounts under $10,000, but there is a 0.25% fee for accounts over $10,000. Portfolios are made up of low-cost ETFs (which vary depending on which custodian the customer chooses) but fees are not waived. Simple but sensible portfolio construction from SigFig. SigFig's capital markets assumptions and market conditions determine how assets are allocated. Depending on the risk level, equity allocations range from 26% to 90% of assets for taxable portfolios, and 13% to 85% for retirement portfolios. Tax-deferred portfolios allocate at least 7% of assets to emerging-markets debt (which could be considered slightly aggressive) and 5% to REITs, regardless of risk tolerance. As the firm partners with larger firms like UBS and Wells Fargo, it raises concerns about remaining a stand-alone Robo-advisor. SigFig's small size and limited revenue base could make it a more likely acquisition target than some of its peers (see Wealthfront's recent merger with UBS).
Titan Invest
Max Bernardy, Clay Gardner, and Joe Percoco founded Titan in 2017. SEC-registered investment advisor committed to helping everyday investors make returns in the stock market.  There are currently more than 50,000 clients and over $750 million under management at Titan. Depending on your investment goals, you can choose from several strategies, including one that is similar to a hedge fund. AUM decisions are made by Titan's investment advisors who have worked at hedge funds. In Titan's investment portfolios, they pick up to 25 stocks instead of investing in exchange-traded funds that mimic a specific index. Investment advisors actively manage your portfolio while managing over $750 million in assets under management for over 50,000 clients. A hedge fund-like strategy is one of the many investment strategies it offers. Investing decisions for Titan's AUM are made by investment advisors with hedge fund experience. Titan invests your money in up to 25 stocks in each of their investment portfolios, unlike Robo advisors that invest in exchange-traded funds that mirror a specific index. Investment advisors rebalance your portfolio based on the risk and reward of each holding. Investors work with Titan like investment advisors. During market downturns, Titan uses a hedge fund-like strategy. Having a short position in stock allows you to profit when the market goes down. With Titan, you'll make money in any market when the stocks you've chosen go down.
Interactive Advisors
Trading and active investing are the strengths of Interactive Brokers. With its Robo-advisor platform, Interactive Advisors, the broker provides investors with access to wide-ranging investment options and portfolio strategies while automating the portfolio management portion of their finances. A unique blend of portfolio options is offered by Interactive Advisors, from self-selection from an extensive investment vehicle catalog to replicating professionally managed portfolios. There are a number of investment options available to investors, including mutual funds, stocks, ETFs, fixed income, REITs, ESG, non-proprietary funds, and managed portfolios. It allows you to choose socially conscious strategies from a variety of established fund managers like Vanguard, BlackRock, and Wisdom Tree to create a portfolio that matches your values. Robo-advisors differ from Interactive Advisors on two fronts for portfolio construction: One, the portfolios often contain fractional stock shares rather than using ETFs exclusively. A few Robo-advisors offer the option of mirroring actively managed portfolios. Its ability to screen out unwanted stocks and see the impact on historical returns makes Interactive Advisors one of the most customizable Robo-advisors.
Personal Capital
Using smart portfolio automation as well as access to human consultants, Personal Capital's platform offers investors a balance between a digital-only experience and a traditional financial advisor model. With its acquisition by Empower Retirement in August 2020, Personal Capital continues to extend its reach. It Personal Capital targets high net-worth investors, with an account minimum of $100,000 and top-tier service for accounts over $1 million. Despite its price tag, it still scored best in terms of truly diversification and automated portfolio management. The strength of Personal Capital lies in its tax optimization strategies. Personal Capital's platform comprises tax-loss harvesting as well as tax-optimized retirement withdrawals and consideration of different tax statuses when placing assets. Personal Capital's Smart Withdrawal tool is a primary goal-setting tool geared toward retirement. You can explore the impact of a market pullback on a wide range of investment goals using tools such as the Recession Simulator. The platform offers access to human advisors who can provide holistic guidance across a range of financial planning topics and additional portfolio customization. Stocks, bonds, ETFs, alternative investments, cash, and private equity are all included in your portfolio plan with Personal Capital. With Personal Capital's Cash account, you do not need to be an investor, and you are protected by FDIC coverage up to $1.25 million4. This account offers flexibility in money movement including direct deposit and payments.
Merrill Guided Investing
A Robo-advisor offering built upon Merrill's extensive investment history was launched in 2017 as part of Merrill's Guided Investing platform. Adding a human element to investing, Merrill launched a "Guided Investing with an Advisor" service in 2019. With a superb educational catalog that caters to investors of all experiences, backgrounds, and goals, Merrill Guided Investing takes home Best for Education. Videos, articles, and goal exploration are among the educational content formats. By elevating investor knowledge, Merrill Guided Investing will help you maximize its tools and reach your portfolio goals. Several planning areas are covered on the platform, including retirement, saving for a home, travel, and investing. Financial outcomes, investment performance, and savings strategies can be simulated using tools to help investors. Through Merrill's Guided Investing digital-only service for a fee of 0.45% or Guided Investing with an Advisor for a fee of 0.85%, the educational content, tools, and automated investing strategies are available. ETFs and mutual funds can be used by both services.
E TRADE Core Portfolios
As a well-known discount brokerage, E TRADE offers Core Portfolios Robo-advisory services. Morgan Stanley acquired E TRADE's platform in 2020, enhancing an already robust offering. Mobile investment platform Core Portfolios uses industry expertise to provide an easy-to-use automated investment experience. This gives investors the capability to manage their portfolios directly from their mobile devices, unlike other Robo-advisors. By reducing goal setting, questionnaires, and time horizon options, E TRADE's Core Portfolio streamlines the mobile experience. Intentionally designed for quick, simple investment management without customizing your portfolio or goals. Invest in ETFs to create a diversified portfolio. A tax-loss harvesting option is not available, and customers cannot consolidate outside accounts. Prospective and existing customers can also access investment advisor support. An annual management fee of 0.3% covers all of this.
Fidelity Go
First-time investors will benefit from Fidelity Go's streamlined and well-designed service without being distracted or intimidated by bells and whistles. A new investor with limited funds but who want to work with an established financial firm might want to consider Fidelity Go. No fees are charged for your first $10,000 because there is no management fee at that level, nor are there fees for investment funds. It invests only in zero-expense Fidelity Flex index funds. The majority of Robo's, including Betterment, use index funds, exchange-traded funds, or mutual funds that charge fees. A Fidelity Go account will ask you a number of questions to help you take stock of your financial life, including your investment goal, risk tolerance, household income, monthly expenses, and any unexpected future expenses. By considering those questions, you can get focused on what needs to be done for your finances. Several of the nine Fidelity Flex mutual funds will be selected for your portfolio, including stocks, bonds, and cash. Fidelity customers also have access to the company's suite of tools: Fidelity Full View will enable you to see all your investments, credit, and banking accounts, as well as loans and property values. Tracking your progress toward achieving a financial goal can be done with Fidelity Spire. Unlike Betterment, Fidelity Go has fewer investment options and no tax-loss harvesting, but it offers a premium hybrid product with advisor support. In comparison to Betterment, Fidelity Personalized Planning & Advice charges more (0.5% vs. 0.40%) but invests in the same zero-expense Fidelity Flex funds as Fidelity Go, helping to make up for that difference. 
Interactive Advisors
Traders and active investors love Interactive Brokers. The portfolio options offered by Interactive Advisors range from self-selection from an extensive investment vehicle catalog to mimicking professionally managed portfolios. Funds include stocks, mutual funds, ETFs, fixed income, REITs, ESG, and non-proprietary funds. It allows you to customize your portfolio's focus extensively, such as blocking companies that do not align with your values or selecting existing socially conscious strategies from Vanguard, BlackRock, and Wisdom Tree. Two aspects differentiate Interactive Advisors from Robo-advisors when it comes to portfolio construction: One, they often contain fractional shares of stocks versus using only ETFs to create stock exposure. Robo-advisors rarely offer the option of mirroring actively managed portfolios. Robo-advisors like Interactive Advisors provide a variety of customization options, including a feature that allows users to omit unwanted stocks and see the impact on returns.
Summary
The Robo-advisor market has several strong offerings, each with strengths in a different key area. Keep your personal preferences, goals, and needs in mind when choosing a platform. Investing returns was not part of our rating methodology. Different Robo-advisors have different portfolio risk levels and allocation strategies. A more dynamic, personal approach allows you to invest in a more dynamic way than platforms that adhere to passive investment strategies. For aligned tax optimization, investment strategies, and goal tracking, consider platforms that allow external account aggregation if your investments are held at more than one institution. In terms of balancing these options, Wealthfront offers the best experience. Here's how the platforms compare so you can see where each shines.

By Rashmi Goel