Robo Advisors

Robo Advisors compared
Robo Advisors

This is the master page for our articles on robo-advisors and ready-made portfolios.

  • It contains links to the articles and a live summary spreadsheet of our findings.

The search for the holy grail of a cheap (< 0.5% pa), simple and well-diversified product continues.

Recommendations

As a general rule, I still recommend that people Become a DIY Investor.

  • I’ve been tracking Robo Advisors for almost three years now, and as a group, they just haven’t become cheap enough.

For now, ETF and fund portfolios on the cheapest platforms are best. The cheapest options are:

  • iWeb and Vanguard for ISAs
  • Fidelity and Vanguard for smaller SIPPs
  • YouInvest and Vanguard for larger SIPPs

There are exceptions to the Robo Advisor rule, though, and not everyone wants to do it themselves.

  1. My prime recommendation is PensionBee.
    • They cut their fees in 2017, and now offer tracker pensions from 0.30% (for £500K).
    • If you are ok with a passive solution, that is very competitive with DIY.
  2. My second recommendation is NEST, the government’s auto-enrolment pension scheme.
    • They offer transfers in of old pensions at 0.30%.
    • There is an extra charge on new contributions, so NEST works best if you have a low salary and a large old pension.
    • And of course your employer needs to have chosen NEST as your auto-enrolment solution.
  3. There are no ISA solutions as cheap as these pensions, so I still recommend a DIY approach here.
    • iWeb are the cheapest that I’ve found.
    • If you do want a Robo solution, then evestor is the cheapest (0.48%).
The articles

Here are the articles published to date:

  1. Hargreaves Lansdown, Fidelity and Nutmeg (June 2015)
  2. True Potential, Wealth Horizon and BestInvest (October 2015)
  3. MoneyBox, MoneyFarm and PensionBee (October 2015)
  4. MunnyPot, Nutmeg (again) and Betterment (February 2017)
  5. IG, AJ Bell, rPLan and Scalable Capital (May 2017)
  6. Vanguard and Comparators – iWeb, YouInvest, Fidelity and NEST (May 2017)
  7. evestor, Wealthify, NetWealth and Wealthdunk (June 2017)
  8. Barclays, UBS and Brewin Dolphin (July 2017)
  9. LangCat Platform Review 2017 (July 2017)
  10. Plain English Global Multi-Asset Fund (September 2017)
  11. Netwealth Interview (January 2018)
The spreadsheet