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Robos Lag Behind Nasdaq Composite in Q2, In Line with S&P 500

By Alex Padalka August 13, 2020

Robo-advisors delivered robust returns in the second quarter but were significantly behind the Nasdaq Composite, according to a recent report.

The average robo-advisor portfolio posted a gain of 19.66% on its equity holdings and 4.15% on its fixed-income investments during the second quarter, says Backend Benchmarking, which tracks the robo-advice space. 

The Dow Jones Industrial Average gained 18% and the S&P 500 index rose 20% during the quarter, according to the Wall Street Journal. But the Nasdaq Composite soared 31% in the second quarter, the newspaper writes. 

Nonetheless, robo-advisors saw a huge increase in new account openings during the first half of the year, Ken Schapiro, Backend Benchmarking CEO, says in a statement.

The company has also updated its robo-advisor rankings, which placed SigFig at the top as the best overall robo. Fidelity Go, meanwhile, which had been ranked best in three consecutive reports, dropped to third place, David Goldstone, Backend Benchmarking’s head of research, says in a statement.

TD Ameritrade came in second in the overall rankings, according to the report.

TD and Personal Capital also each received perfect scores in the financial planning category, Backend Benchmarking says.

Vanguard Personal Advisor Services was ranked best for complex financial planning needs, with Personal Capital close behind, according to the report. 

Robo-pioneer Betterment, meanwhile, took top place as far as robos for first-time investors, and fellow robo-pioneer Wealthfront was ranked the best robo for digital financial planning, with Personal Capital taking second place, Backend Benchmarking says.

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Tags:  Technology , Investment strategies , Portfolio management , Fidelity , TD Ameritrade , Vanguard , Wealthfront , Betterment

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