10 Best Robo-Advisors: Q2 2024

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The robo-advisor industry has reached a mature phase, surpassing an estimated $1 trillion in assets under management in late 2023, Condor Capital Wealth Management said in its latest Robo Report released Monday.

“The industry’s evolution over the past year has led to the exit of several less-performing firms that could not sustain their operations or align with their existing business models. This trend reflects a broader maturation in the robo-advice market, where early rapid growth has given way to a more stable, albeit competitive, environment,” the firm said.

Moves by Goldman Sachs and JP Morgan Chase to exit the retail robo-advice business, and Betterment’s move to raise the management fee for a revamped premium robo plan, “represent the difficulty of offering advisory services at rock-bottom prices while earning meaningful profits,” Condor Capital stated.

The report names the top robo-advice providers overall and in specific areas by tracking 37 accounts at 26 companies. It also touches on market and industry trends.

Condor Capital noted that domestic, large-cap and growth-oriented portfolios demonstrate enduring strength across one-, three-, five-, and seven-year periods.

Fixed income portfolios with allocations different from the Bloomberg Aggregate Bond Index show superior performance, it said.

Rather than measuring providers based on portfolio performance alone, the Robo Ranking grades advisors across more than 45 specific metrics.

The firm scores each robo on high-level categories, such as features, financial planning, customer experience, access to live advisors, transparency and conflicts of interest, size and tenure, account minimums, costs and performance.

“The Robo Ranking is a powerful tool to help those investors who are considering using a digital advisor. Although we rank and give each robo an overall score, we also acknowledge the differences in individual investors and their situations,” the report said.