Test Accounts Week 2

The S&P 500 index was up about 1.6% last week. The 2 automated investing service’s test accounts, Betterment and Wealthfront, had up weeks, but lower than the S&P 500 index. They hold a mixture of stocks and bonds. The bond components should result in under performing the S&P 500 index in up weeks and over performing in down weeks. In the past week, they gained 1.1% and 0.7% respectively.

The next learning event for these 2 will be when dividends are received for the ETFs they hold. These will be reinvested. It will be interesting to see how and when this is done.

The Folio Investing account had a better week, gaining almost 2% last week. This account is almost entirely invested in stocks.

As mentioned in the previous post, Automated Investing was turned on for Lending Club. In the initial round of funding, they invested in 117 notes at $25 each. Over the next 3 days, they invested 13 separate times in from 1 to 9 notes on each occasion. I set the initial limit at $4900 and we are approaching that. My account holds 192 notes, but none have been issued yet. They are in various stages of funding and review.

Nothing will be earned in the Lending Club accounts until one month after notes are issued and payments begin. So the account value will remain at $10,000 for a while.