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:
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.