Welcome to the Investment Robo-Advisor Account Report for May 2016!

May Investment Robo Advisor Report

May had a big shocker: Vanguard took the lead for the month in biggest gains, making me $7!

Okay, I know that $7 is not a lot of money, but for not doing anything, I think making $7 is not too shabby. Betterment came in second with a $1 and Wealthfront disappointed with losing $-4.

For the month, I am still feeling pretty good. We are three months into this challenge, and with the three accounts running, I have made $48.73, not bad for investing just $1500.

Overall Earnings

For overall earnings, my investments continue to make me money, with Betterment leading the pack still at $24.59. They have the highest return still, with +4.8%.

This Month

For this month, we see our first negative change, with Wealthfront losing $4 from the previous month. Across all three accounts, we are still in the positive, but changes are to be expected. I am really surprised about Vanguard’s triumphant return.

It will be interesting to see if Vanguard can hold its lead, and if so, for how long. The robo advisers should be continually re-evaluating itself and the market to make the most money. We are really looking at (if Vanguard can hold strong) if investing in index funds versus a robo advisor is more successful. Only time will tell.

Why Robo Advisors

I chose to investigate robo advisors versus traditional investment vehicles to which how much my money will grow in each one. For a year, I will invest $500 into a Betterment (robo advisor) account, Wealthfront (robo advisor) account, and into an index fund, Vanguard, and watch to see which one does better.

I have found thus far, that the robo advisors continue to have the better interface, easier to understand graphics and ease of investing.

Get Involved

If you are just tuning in, I am investing $500 into three different investment accounts to see which one grows. Why might you ask? Well, for those new to investing or those who want to start but are not sure where to begin or, you might have some money and want to grow your wealth, but aren’t sure which is best for you, I wanted to test out some great options.

Anyone can sign up for these robo advisor accounts and, personally, it was very easy to set up the account with both Betterment and Wealthfront. I recommend investing a few dollars and see what happens!

Want to join the challenge? Feel free to add a comment below on how your accounts are doing! Here is what I did to set up each of my investment accounts:

How I Set Up My Betterment Investment Account

How I Set Up My Wealthfront Investment Account

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  • Have you ever tried using WiseBanyan? I know they are similar to Bettermend and Wealthfront but don’t charge any fees. I wonder how the performance would compare to the others you are testing! I personally do my own investing at Vanguard but have used Betterment in the past and loved how easy it was and how appealing the interface was.

    • I have looked into WiseBanyan and even joined their waiting list. Potentially in the future, I will add them to the challenge.

      I agree with Betterment’s interface and ease of use. I find that Vanguard is outdated and confusing to use.