Pure Benchmarks · Guide

How Do I Compare Robo-Advisor Returns and Performance?

Short answer

Robo-advisor returns are only comparable when the portfolios carry similar risk. A 90% stock portfolio will beat a 50% stock portfolio in a rising market regardless of which provider manages it, so headline returns mostly reflect the risk level chosen, not the robo-advisor’s skill. Compare at the same stock-bond mix, over the same dates, using time-weighted return net of the advisory fee and fund expenses. Then check your own account, because your deposits, withdrawals and any setting changes shape your result as much as the provider’s model does.

Robo-advisors publish performance figures, review sites rank them, and investors compare their own balances with friends who use a different service. Most of these comparisons mix up the risk level chosen with the quality of management. This page explains how to compare robo-advisor performance fairly, what drives the differences you see, and how to check whether your own robo-managed account is doing well against investors taking similar risk.

Risk level explains most of the difference

Robo-advisors build portfolios from a questionnaire that sets the share in stocks versus bonds. That allocation drives most of the return. Comparing one provider’s aggressive portfolio with another’s moderate portfolio measures the risk setting, not the provider. A fair comparison lines up portfolios with the same, or very close, stock-bond mix.

Use the same dates and the same return method

Returns over different windows are not comparable, and a balance that rose because of deposits is not investment return. Time-weighted return removes the effect of when money was added or withdrawn, which makes it the right basis for comparing providers. Your own money-weighted return can differ, because it includes the timing of your contributions.

Count every layer of cost

Robo-advisor returns should be compared after the advisory fee and the expense ratios of the underlying funds. Some services charge a flat monthly fee rather than a percentage, which costs proportionally more on a small account. Features such as tax-loss harvesting can add value in taxable accounts but are hard to compare from published figures.

Your account is not the model portfolio

Published robo-advisor performance usually describes a model portfolio. Your account differs because of when you deposited, whether you changed your risk setting, any cash allocation, and withdrawals. Changing the risk level after a market drop is a decision like any other, and it can change your result more than the choice of provider.

Checking your own robo account

Pure Benchmarks, our own product, connects robo-advisor accounts alongside brokerage and retirement accounts, measures return with deposits and withdrawals separated, and ranks your portfolio against verified investors in the same risk category. That answers whether your robo account did well for the risk it took, rather than how it compares with a portfolio carrying different risk.

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Frequently asked questions

How do I compare robo-advisor returns?

Compare portfolios with the same stock-bond mix, over the same dates, using time-weighted return after the advisory fee and fund expenses.

Why are my robo-advisor returns different from the published ones?

Published figures usually describe a model portfolio. Your account reflects when you deposited, any risk-setting changes, cash held and withdrawals.

Which robo-advisor has the best returns?

Headline differences mostly reflect the risk level of the portfolios compared. At similar risk, differences are usually smaller and driven by fees, fund choices and cash allocations. This page is information for comparison and not a recommendation about any provider or holding.

Is my robo-advisor beating the market?

A diversified robo portfolio with bonds is not designed to match an all-stock index. A fairer test is how it compares with investors holding a similar mix.

How can I check my robo-advisor account against other investors?

Pure Benchmarks, our own product, ranks connected accounts against verified investors in the same risk category, with deposits and withdrawals separated from returns.

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This page is an information baseline for comparison only. It is not investment advice and not a recommendation to buy, sell, replace, or transfer any specific asset, account, or firm. Past performance does not guarantee future results. All figures shown are illustrative.