- Single-stock concentration risk. Among investors who own stocks, six in 10 have more than 10% of their portfolios invested in a single stock.
- High fees. Among those who own mutual funds or ETFs, six in 10 own at least one high-cost fund (with an expense ratio of 0.5% or higher).
- Cash drag. More than a quarter of investors (27%) have at least 10% of their portfolio sitting idle in cash.
- Home Bias. For 60% of investors, international equities represent less than 10% of their equity portfolio.
To help investors easily detect these errors, today we are proud to announce the launch of SigFig Guidance. By simply connecting your brokerage accounts to SigFig and completing a brief questionnaire, we will instantly analyze your portfolio, detect and help you address potential issues, such as:
While investors can employ SigFig to manage their accounts, the Guidance tool offers actionable suggestions at no cost, and with no commitment from the investor.
Our financial consultants are also available to speak with customers at any time.“Traditional advisors often charge thousands of dollars to get these kinds of detailed insights, and they aren’t truly impartial in their recommendations,” says SigFig CEO Mike Sha. “We have technology that can manage investor assets at a fraction of the cost of traditional advisors. We have decided to offer free analysis to arm investors with as much information as possible to improve their performance and reduce fees.”If you have any questions, you can speak with one of our financial consultants any time at 1-855-9SIGFIG, or email us at firstname.lastname@example.org.
Note: All data cited in this article is aggregated and anonymized from more than 250,000 investors who sync their portfolios with SigFig.