We know you have a multitude of options when it comes to investment managers. We firmly believe that our unique combination of automated services with a human advisor has created one of the most comprehensive low cost advisory services available. The table below shows how we compare to the many available options out there today:
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Traditional Advisor |
Robo Advisor |
Do-It-Yourself |
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Annual Fees¹ |
0.17% – 0.42% |
1 – 2% |
0.29% – 0.89% |
0.64% |
Personalized Risk Profiling |
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Financial Planning |
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Comprehensive Asset Review |
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Automated Rebalancing & Dividend Reinvestment |
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Static Modern Portfolio Theory Portfolio Construction² |
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Varies |
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Varies |
Behavioral Coaching |
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Excessive Fund Holding (AKA, Diworsification)³ |
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Tax Efficient |
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Varies |
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Varies |
Index Based Portfolio |
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Varies |
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Varies |
1 – Orcam’s fees may vary depending on portfolio specifics. The Do-It-Yourself average of 0.64% is based on the average cost in the 2015 Morningstar study on investor fees. The vast majority of individual investors are still using high fee mutual funds and high cost ETFs.
2 – Static Modern Portfolio Theory refers to the tendency for these asset managers to invest in buy and hold “stocks for the long-run” type portfolios that often leave an investor’s underlying asset allocation overly aggressive and misaligned with their profile at times during the business cycle as well as throughout their lives.
3 – Diworsification refers to the tendency for asset managers to hold an excessive number of funds (10+) that gives the appearance of doing something superior when the reality is that this often times simply results in higher fees and the illusion of justifying those high fees.