We're honored to be ranked #1 out of 64 robo advisors by relative performance in 4Q 2019, according to the Robo Report.
The Robo Report is published each quarter, and it measures portfolio performance sourced from real accounts tracked by Backend Benchmarking, a third-party financial portfolio analytics platform. They started tracking Titan in 3Q 2019.
As shown above, Titan's 4Q 2019 performance relative to its normalized benchmark was ranked #1 out of 64 robo advisors covered by the Robo Report.
Note that some of the above robos' portfolios had more equity than fixed income. Titan, for example, is 100% equity; other robos are 60% equity / 40% fixed income. The percentage allocated to equities in a portfolio is one of the largest drivers of returns; generally, higher equity allocations drive higher returns than fixed income over time, but equity is also higher risk. Because of this, comparing robo portfolios that have a different level of equity allocation can be misleading.
Backend Benchmarking's Robo Report does a great job of normalizing returns for these allocation differences.
The table above shows each robo's "Delta vs. Normalized Benchmark" which attempts to normalize their varying equity vs. fixed income allocations. The result is a more apples-to-apples comparison of returns than just looking at the "4Q 2019" column, in our view.
That said, past performance is no guarantee of future results. We remain focused on long-term returns, and we'll continue to show our results from future reports.
Any questions, let us know.
Backend Benchmarking's illustrative Titan account represents an account with an Aggressive risk profile; clients with Moderate and Conservative risk profiles would have experienced lower returns. See website for full disclosures."
In the Ranking portion of the report, Backend Benchmarking limits the robos to those that had a minimum of 2.25 years performance history within the account they track. This is why Titan among many other robo advisors are not covered in the Robo Ranking section of the report yet. We look forward to being covered in the Robo Ranking in the future.