Many say one’s mobile phone choice says a lot about a person; so what does someone’s mobile phone preference say about them as an investor?Recently, our data team looked at the investing behaviors of users behind different mobile phones—iOS, Android, and Windows. (Specifically, they examined 150,000 users of the SigFig app.)In terms of portfolio returns, there was no real difference between users of these three devices, but we did see a difference in terms of assets. Given the high cost of an iPhone, perhaps it’s not surprising to see that the portfolio size of an iOS investors is two times the size of an Android or Windows user. While it may seem iOS users would be most proud of their mobile choice given their portfolio size, it turns out that it is the Windows user who is the most loyal to the brand—with users being 3X more likely to own Microsoft shares. Disclaimer:Your mobile operating system does not actually impact your portfolio size or returns performance. Choosing an iPhone will not guarantee better investment results or a larger portfolio size. However, sound investment strategies tend to help investors put their best foot forward.
When the stock market experiences a downturn, as it did on August 20th, the advice to individual investors is clear: do not do anything drastic. Ignore the headlines and stick to your long-term investment plan. In fact, if you have the means, there’s no better time to buy.However, this advice is much easier to say than to follow.The SigFig data team examined investors’ behavior during this recent market correction. So how did SigFig Managed Account holders fare compared to other investors?In the weeks prior to August 20th, for every one SigFig Managed Account holder that withdrew funds, four account holders added funds to their accounts (Fig. 1). After August 20th, that ratio increased to six to one. In order words, SigFig Managed Account holders were 1.5 times more likely to add funds than they were to draw down. (Nice job, everyone.)Fig. 1 | The ratio of SigFig Managed Account holders who added funds to their account to those who withdrew funds from their accountIf we look at a bigger population of investors that use SigFig to sync their portfolios, we see that the majority of investors did nothing as a result of the market correction (Fig. 2).Fig. 2 | How investors who sync their accounts with SigFig reacted to the August 2015 market correctionThat’s great to see, because when we look down the road at portfolio performance, the more investors panicked and sold, the worse they fared in terms of portfolio return (Fig. 3). Fig. 3 | 12-month total portfolio return based on investor reactions to the August 2015 market correction The market can be unpredictable, but as our recent analysis shows, staying the course is typically your best bet. For other good reads and data reports related to this topic, check these out:
- Investing Requires Discipline and Long-Term Focus
- Study Points to Yet Another Reason Why Active Investing Is a Losing Game