Here is the update for February 18… which is pretty interesting because the market took a dip. 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 2/5/2018 I’ve earned $493. I am pretty happy with that. This is still good, but less than last month.
Note that that the comparisons have updated.
See below for performance since August onwards.
Some of the investments were made in May 17 and others were made in August 17. In order to compare Apples to Apples, this is calculating as if all funds were invested in August. This way, it won’t skew the standings by giving the investments made in May extra time to gain from the market.
Apples to Apples: Best Year To Date August Onwards:
- Ellevest is our new lead, and it is important to note that this stuff changes all the time. This is interesting, because on 2/5/18, the market took a dive.
- S&P500 is in 2nd place, Wealthfront in 3rd, Betterment has fallen to 4th, SoFi is in 5th and Fundrise is in 6th.
- Last month, S&P 500 was still doing the best. Wealthfront was 2nd best, See link for code. Betterment was in 3rd, Ellevest was in 4th, SoFi was 5th and Fundrise is in 6th.
- Using my portfolio, if you invested $1000 in August, you would have made 6.32% or $63.20.
See below for performance Month to Month for August Onwards:
Best Month over Month- August Onwards
- Fundrise did the best this month because almost all of the other investments tanked. Ellevest was 2nd, SoFi was 3rd, Wealthfront was 4th, S&P500 was 5th and Betterment was 6th.
- Last month, Wealthfront killed it this month, with 4.99%. Betterment was 2nd, SoFi was 3rd, S&P500 was 4th, Ellevest was 5th, Fundrise was 6th.
- Month to month we lost money overall, wahhh. But remember, we are in this for the long haul.
- 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, different investment start dates:
- Ellevest is doing the best, Betterment is in 2nd, S&P500 is in 3rd, Wealthfront is in 4th, Fundrise is in 5th, and SoFi is in 6th.
- Last month, Betterment was doing the best YTD, S&P500 was in 2nd. 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 above. 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 8.27% or $82.70.
Some interesting things to point out:
- Month to month performance was interesting. Fundrise outperformed the others, when they have been in last place for the last several months. They invest in real estate instead of the stock market like the others. Fundrise has consistently increased in value, but it has been at a slower pace than the stock market.
- Ellevest increased a lot more than others. Out of curiosity, I checked on 2/6/18, and it dropped back down. It goes to show you that investments change everyday.
- Last month, Wealthfront and Betterment increased almost 5%. This month, they both dropped over 3% this month. 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.
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