sig fig research the cost of investing mistakes - march 18 2015

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All data in this report is aggregated and anonymized from investors who sync and track their portfolios with SigFig. Learn more at www.sigfig.com or email insights@sigfig.com. A look at the most common — yet easily avoidable — investor mistakes

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Page 1: Sig fig research   the cost of investing mistakes - march 18 2015

All data in this report is aggregated and anonymized from investors who sync and track their portfolios with SigFig. Learn more at www.sigfig.com or email [email protected].

A look at the most common — yet easily avoidable — investor mistakes

Page 2: Sig fig research   the cost of investing mistakes - march 18 2015

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9 in 10 investors have poor diversification.

6 in 10 investors pay too much in fees.

1 in 4 portfolios shows signs of cash drag, neglect,

or overtrading.

More than 90% of investors have problems in their portfolios.

Analysis is based on data aggregated and anonymized from investors who have synced their investment accounts on SigFig. Minimum sample size in each analysis is 250,000 investors. Technical details are available upon request.

Page 3: Sig fig research   the cost of investing mistakes - march 18 2015

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9 in 10 investors have poor diversification.

Of those investing in stocks, 6 in 10 have more

than 10% of their portfolio in a single stock.

1 in 2 investors has more than 80% of their portfolio

in equities.

For 6 in 10 investors, international equities

represent less than 10% of their equity portfolio.

SINGLE STOCK RISK

HOME BIAS

EQUITY CONCENTRATION

Analysis is based on data aggregated and anonymized from investors who have synced their investment accounts on SigFig. Minimum sample size in each analysis is 250,000 investors. Technical details are available upon request.

Page 4: Sig fig research   the cost of investing mistakes - march 18 2015

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6 in 10 investors pay too muchin fees.

60% of investors own at least 1 high-cost fund

(funds with expense ratio of 0.50% or higher).

Investors who have an advisor pay 1.3% of their

assets in management fees on average, or

$7,000 a year.

HIGH COST FUNDS

HIGH ADVISOR FEES

Analysis is based on data aggregated and anonymized from investors who have synced their investment accounts on SigFig. Minimum sample size in each analysis is 250,000 investors. Technical details are available upon request.

Page 5: Sig fig research   the cost of investing mistakes - march 18 2015

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1 in 4 investors’ portfolios show signs of neglect or overtrading.

27% have cash drag (at least 10% in idle cash in

their portfolio).

25% of investors have not rebalanced or

contributed to their portfolios in the past year.

20% have portfolio turnover of 100% or more.

CASH DRAG

INATTENTION

OVERTRADING

Analysis is based on data aggregated and anonymized from investors who have synced their investment accounts on SigFig. Minimum sample size in each analysis is 250,000 investors. Technical details are available upon request.

Page 6: Sig fig research   the cost of investing mistakes - march 18 2015

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These bad habits are common, and costly.

67% 33%In 2014, 33% of everyday investors ended the

year with negative or zero returns…

… and the median investor underperformed a

60/40 balanced portfolio by 60%.

13.6%10.6%

4.2%S&P 500 60 / 40 MEDIAN

INVESTOR

RETURNS INCLUDE DIVIDENDS. TIME PERIOD IS 12 MONTHS ENDING 1/2/2015.

Analysis is based on data aggregated and anonymized from investors who have synced their investment accounts on SigFig. Minimum sample size in each analysis is 250,000 investors. Technical details are available upon request.

Page 7: Sig fig research   the cost of investing mistakes - march 18 2015

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About SigFigSigFig is the largest portfolio optimization platform in the world helping everyday investors track over $350B in assets. Through partnerships with Fidelity, Schwab, and Ameritrade, we analyze, monitor and improve your portfolio, or help build a new one. Using advanced algorithmic strategies, SigFig automatically balanc-es and diversifies your investments, while reducing risk and minimizing fees.

About this ReportAnalysis is based on data aggregated and anonymized from investors who have synced their investment ac-counts on SigFig. Minimum sample size in each analysis is 250,000 investors. Technical details are available upon request.

Contact InformationFor more information, email [email protected] or call (415) 558-9611.

Disclaimers

Past returns reflect performance of assets over the course of one calendar year from 1/3/2014 to 1/2/2015 unless otherwise noted. Data is based on aggregated anonymized data representing SigFig users unless otherwise noted. Results are net of all management fees and expenses unless otherwise noted. Performance data includes reinvestment of dividends and interest unless otherwise noted.