Robo advisors are increasingly growing in popularity, and these automated services are threatening to take huge amounts of business away from traditional financial advisors.
Multiple different segments of the investing public have already taken advantage of robo advisors for a variety of reasons. Many traditional financial advisors have decided to work cooperatively with robo advisors rather than try to compete with them directly, and this strategy has helped streamline the process and reduce costs.
Millennials use robo advisors because they remove the perceived “guess work” out of investing, which provides a measure of comfort to hesitant millennial investors. And often, robo advisors offer cheaper fees than human advisors, which also makes them attractive to this group.
And retirees and high net worth individuals can often test robo advisors because they have more disposable income.
But which robo advisor should you use?
To help you narrow down the choices, BI Intelligence, Business Insider’s premium research service, has decided to review some of the most popular robo advisors on the market to help you make the most informed decision.
In this article, we’ll cover Motif.
Motif Review Summary
Fees & Pricing
AUM, Returns, & Portfolio Performance
Motif Review Summary
Motif is aptly named, as the robo advisor offers investors the ability to invest in themed portfolios, or “motifs.” These are essentially bundles made up of a maximum of 30 stocks and ETFs. These motif typically follow specific investing themes or industries, such as biotech, cybersecurity, mining, retail, and more, but customers have the option of customizing their own portfolios. As a result, Motif is a great fit for investors who want to make the transition from traditional human advisors to robo advisors.
Assets Under Management (AUM): N/A
Minimum Account Balance: $0
Fee Range: 0%
Account Types: Individual, Joint, 401K, Traditional IRA, Roth IRA, Rollover IRA
Services: Portfolio Rebalancing, Mobile App
Motif Fees & Pricing
Motif does not have a minimum account requirement, but you must deposit at least $300 to invest in a motif. To trade on margin, you must have a minimum balance of $2,000.
Motif does not charge any management or advisory fees, but it does charge a flat fee of $9.95 per motif trade and $4.95 for a single stock trade.
Bear in mind, the company’s robo advisor comes through a subscription service called Motif Blue for as low as $4.95 a month.
Motif AUM, Returns, & Portfolio Performance
Motif Blue claims an average annualized return of 16.3% as of October 6, 2016. The robo advisor also notes that its top five performing motifs and their returns are:
China Internet: 34.4%
Battling Cancer: 36.6%
Social Networking: 41.1%
Online Gaming World: 49.0%
Precious Metals: 59.0%
Motif offers the basic set of features that most other robo advisors do, which makes it an easy entry point for those who want to test out automated investing.
Portfolio Rebalancing: The robo advisor will use its algorithms to reinvest your money by automatically rebalancing your portfolio to reduce risk and boost returns.
Commission-Free Trades: Motif Blue charges no commission on trades from recurring investing and rebalancing, which should ultimately give you …read more
Source:: Businessinsider – Finance