Test Accounts Week 14

A bad Friday finish sent the S&P 500 Index down 1.0% for the week. All test accounts outperformed the index as expected, except Folio Investing. It finished down 1.5%. The changes I made in the Ready to Go folios (RTGs) did not help.  The folios I selected have very high potential returns, but with more volatility.

All the robo-advisers were down slightly, Betterment 0.3%, Wealthfront 0.2%, and Schwab Intelligent Portfolios (SIP) 0.3%. Betterment continues to reinvest small amounts of dividends in fractional shares in an attempt to maintain the original allocations. Wealthfront is keeping these dividends in cash presumably waiting to accumulate enough to attempt some re-balancing. Schwab’s web site activity page is still under development, but I don’t believe there has been any re-balancing.

I decided to see how these dividend treatments moved the current allocations away from the original allocations. For each ETF I computed the absolute value of the difference between the current allocation and the original. Then I used the average of these. Not surprisingly, Wealthfront had moved the most 0.27%. Betterment and SIP had only moved 0.09%. SIP has only been around for half as long as the other accounts so its difference should begin to move higher.

In the next few weeks it will be time to make some decisions about the test accounts. Follow me on twitter @billlanke and I’ll let you know when I update the blog.

W/E	S&P 500	BTRMNT	WLTFRNT	FOLIO	LND CLB	SCHWAB
16-Jan	-1.2%	0.0%	0.4%	-0.2%	0.0%	-0.2%
23-Jan	1.6%	1.1%	0.7%	2.0%	0.0%	1.0%
30-Jan	-2.8%	-1.5%	-0.9%	-2.0%	0.0%	-1.3%
6-Feb	3.0%	1.0%	1.0%	0.9%	0.0%	1.3%
14-Feb	2.0%	1.0%	0.8%	1.8%	0.0%	1.2%
21-Feb	0.6%	0.6%	0.4%	0.5%	0.0%	0.4%
28-Feb	-0.3%	0.2%	0.2%	0.3%	0.7%	0.0%
6-Mar	-1.6%	-1.6%	-1.8%	-0.9%	0.3%	-2.1%
13-Mar	-0.9%	-0.1%	-0.3%	-3.4%	0.2%	-0.7%
20-Mar	2.7%	2.1%	2.0%	3.5%	0.2%	1.0%
27-Mar	-2.2%	-1.0%	-1.1%	-2.3%	0.3%	0.5%
3-Apr	0.3%	0.6%	0.6%	0.0%	0.3%	0.8%
10-Apr	1.7%	1.2%	1.0%	2.5%	0.3%	1.3%
17-Apr	-1.0%	-0.3%	-0.2%	-1.5%	0.3%	-0.3%