While interesting, I’d use this data as one piece of a deep evaluation into specific robo advisory platforms.Īnswer 4 question and find out the best robo advisor for you with our Robo Advisor Selection WizardĪfter analyzing roughly 300 robo-advisor platforms, Nummo, a personal financial management platform, came up with the top three robo-advisors across these categories. This is a long way around of saying take all return data with a grain of salt (even this report of the best robo-advisor returns this year). That’s a perfect example of an apples to oranges comparison. You can’t compare an aggressive portfolio with the robo-advisor performance of a conservative on. While the conservative folks own 50% or 60% stocks and the remainder in bond funds. There’s another piece of the robo-advisor return puzzle worth noting each robo offers multiple investment options.įor example, aggressive investors might own 80% stock investments and 20% bond funds.
Yet, robo investing returns are only a snapshot in time of a long investing life.Īctually, the winners and losers during a specific period don’t tell us which robo advisors returns will win for the long run. In fact, many investors want to choose their robo-advisor, based upon the best robo-advisor returns. If your robo receives a good robo advisor ranking then you’re happy because you believe that you made the “right” investment choice. I still hold them as they will one day bounce back to the top.Investors love lists of the best robo-advisor returns and robo advisor performance data. MSCI EAFE (Developed Foreign Stocks, Light Grey) have also been doing relatively poorly.
For the past 4 years, Emerging Markets has been near the bottom. This year, I note that Emerging Markets (Orange) tends to either run really hot or cold. I find it easiest to focus on a specific color (asset class) and then visually noting how its relative performance bounces around. Also noteworthy is the difference between absolute and relative performance, as returns for the top-performing asset class span a wide range over the past 20 years. The Table highlights the uncertainty inherent in all capital markets. The Callan Periodic Table of Investment Returns conveys the strong case for diversification across asset classes (stocks vs. Here is the most recent snapshot of 1997-2016:
#Best investment returns 2017 free#
You can find the most recent one at their website, with access to previous versions requiring free registration.Įvery calendar year, the best performing asset class is listed at the top, and it sorts downward until you have the worst performing asset. We need to remember the historical power of diversification and that even though something may look horrible now, good news may be just around the corner.Ĭallan Associates updates a “periodic table” annually with the relative performance of 8 major asset classes over the last 20 years. We’ve all been told that past performance is no guarantee of future returns, but it’s still hard to buy an investment that has been performing poorly.
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