I have less to invest than I should at my age. Except for some property, all my cash is in my ROTH-IRA, and all of that has been in PRBLX (Parnassus) for a few years now.
My Ameritrade advisor has been encouraging me to start using their Essential Portfolios robo-advisor.
I'm still curious about "what's so great" about robo-advisors like Essential Portfolios as far as return goes, in comparison with the PRBLX mutual funds, for example.
The Ameritrade advisor pointed out that PRBLX is a bit behind the S&P 500. But it seems way ahead of even the most aggressive of the five Essential Portfolios.
The Ameritrade advisor also pointed out the expense ratio is higher for PRBLX: 0.87% vs 0.3%. But if the return is consistently higher than with the robo-advisor isn't it worth it?
On the other hand, if PRBLX consistently has the growth shape of the S&P 500, but actually lags behind the S&P 500, so why is it better than just a fund that follows that index?
Another factor is that the market has been consistently up for a year now, so it may be hard to judge returns on the robo-advisor because they've been operating for less than two years now.
Any thoughts?
Submitted October 22, 2017 at 07:56AM by douglerner http://ift.tt/2gvSCeh
