Here is the update for January 18. For those of you that are new, last summer I was looking into investing using one of these Silicon Valley financial company startups. I was reading reviews based on offers, fees, investment minimum, etc., but I couldn’t find anything on how well they performed. Therefore, I conducted my own $1000 investment experiment where I invest $1000 through each of the companies listed in the charts below. I made a few $1000 investments back on 5/30/2017. And then a couple more $1000 investments in August. In total I’ve invested $5,962, and as of 1/5/2018 I’ve earned $627! I am pretty happy with that, but I need to remember that this behavior isn’t the norm and the market can shift at any time.
See below for performance Month to Month:
Best Month over Month
- Wealthfront killed it this month, with 4.99%. Last month, S&P500 was doing best month over month.
- Betterment is 2nd, SoFi is 3rd, S&P500 is 4th, Ellevest is 5th, Fundrise is 6th.
- Using my portfolio, if you invested $1000 last month, you would have made $39.20 or 3.92%.
See below for performance Year To Date:
Best Year To Date:
- Betterment is doing the best YTD, and S&P500 is doing 2nd best. However both had extra time to increase in value over Wealthfront and SoFi. See link for Betterment code.
- If you want to a more fair comparison, see August Onwards below. This has different investment dates, because I did two rounds of investing.
- Using my portfolio, if you invested $1000 end of May (and August) , you would have made 10.52% or $105.20.
See below for performance since August onwards.
This is calculating as if all funds started in August. The purpose of this is to compare Apples to Apples, and so it won’t skew the YTD standings.
Best Year To Date August Onwards:
- S&P 500 is still doing the best when comparing only August onwards.
- Wealthfront is doing 2nd best YTD when comparing only August onwards. See link for code.
- When comparing August Onwards, Betterment is in 3rd, Ellevest is in 4th, SoFi is 5th and Fundrise is in 6th.
- Using my portfolio, if you invested $1000 in August, you would have made 8.54% or $85.40
Some interesting things to point out:
- Month to month performance was spectacular. Wealthfront and Betterment were almost 5%.
- Last month, S&P500 performed the best. This month Wealthfront, Betterment and SoFi all outperformed. Just because one investment performs best one month, does not mean it will be best next month.
- SoFi has free Career Coaching and Networking Events. Check out my review of a recent event here.
- Fundrise supposedly has higher returns the longer you own it, and smaller returns in the beginning.
- In September 17, Fundrise increased the most Month-to-Month, whereas Betterment, Wealthfront, and S&P500 all went down.
Remember, sometimes the market goes up. Other times, the market goes down. But the trick is to put money in and then forget about it. If you take it out when it the amount goes down, you never give it the time or chance to let it go back up. So invest, and just keep doing what you are doing.
Want to see how lazy I am? Read My Laziness cost me $20k. Want to check if you are Financially Literate? Check out this post! Trying to determine if you should buy a New or Preowned Car? Use the template. Don’t know where to start with your New Year Finances? Start Here.