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Is SigFig Right for You?
Founded in 2006, SigFig Investing is one of the first financial technology platforms to provide robo-advising with low management fees and free access to financial advisors (unlimited 15-minute phone calls). It’s best suited for beginner investors looking for hands-off automated investing and portfolio management.
Like a “middleman” of sorts, you can grant SigFig access to an external brokerage account (limited to TD Ameritrade, Fidelity, and Charles Schwab) so you don’t have to move your assets. If you don’t already have an account with one of three partnered brokerages, you can open a TD Ameritrade account directly through SigFig.
SigFig creates and manages diverse investing portfolios of low-fee, commission-free, index-based ETFs and REITs from its brokerage partners.
SigFig offers competitive fees. Although SigFig’s $2,000 minimum account balance is on the higher side — especially compared to some of the best robo-advisors like Betterment and SoFi — it has a low 0.25% management fee. And if your account balance is under $10,000, you don’t pay an annual management fee. SigFig’s website lists its average expense ratio for ETFs to be between 0.07% to 0.15% (varies by brokerage).
The platform also provides users with free access to a variety of portfolio and analytical tools like holistic portfolio review, fee analysis, automatic account balancing, and goal tracking. Its main account features are tax-loss harvesting and automatic portfolio balancing (if your investments differ too much from your original financial goals).
Advanced traders or folks looking for more hands-on investing are better off with a different investment platform or online brokerage. You can check out Insider’s picks for the best online brokerages and the best investment apps for low-fees, access to a range of investments (including cryptocurrencies), and account flexibility.
SigFig: Overall Rating
SigFig vs. Betterment
Like SigFig, Betterment Investing is one of the oldest automatic investing platforms. Both platforms offer investors automated portfolio management, tax-loss harvesting, and human advisor access. However, they differ when it comes to account minimums, investment options, and account options.
Betterment is better for investors looking to invest in cryptocurrencies or socially responsible investing, as SigFig doesn’t provide either of these account/portfolio options. Moreover, Betterment has a minimum balance of $0 to open, $10 to start investing ($100,000 for premium plan).
Both platforms have a 0.25% annual management fee. However, only SigFig users with more than $10,000 in their accounts pay the 0.25% management fee (otherwise, it’s a $0 fee), whereas Betterment charges at least 0.25% for digital plans, 0.40% for premium plans, and 1% for crypto portfolios.
SigFig vs. SoFi
SoFi Invest and SigFig offer similar perks like goal planning, automatic portfolio rebalancing, ETF diversification, and access to certified financial planners (CFPs).
But SoFi is a cheaper option all the way around with no advisory fees and no account minimums. It’s also better for investors interested in DIY trading, self-directed accounts, and mutual funds. Other than the access to tax-loss harvesting (which SigFig does provide), SoFi is the better option overall.
Ways to Invest with SigFig
Automated investment accounts
SigFig is best for passive investors who aren’t interested in hands-on trading. It uses computer algorithms to build and manage portfolios. The platform is centered around retirement savings and automatically creates and manages portfolios made up of a blend of commission-free and low-fee ETFs and REITs. SigFig does not have cash management account options.
To start out, SigFig has new users take a questionnaire to evaluate risk tolerance and personalized financial goals. One of the first questions is how long you want to invest. For example:
- Short (less than five years)
- Intermediate (five to 10 years)
- Long (more than 10 years)
SigFig also considers your age, household income and savings, risk tolerance (from very low to very high), and the worth of your liquid assets. The questionnaire then recommends a Growth Portfolio based on those factors and gives users a suggested ratio of stock and bonds — for example, 83% stocks and 13% bonds made up of a range of US investment grade bonds, short-term treasury bonds, real estate, emerging markets, and US and international equities.
SigFig offers taxable individual accounts, taxable joint accounts, and a selection of retirement savings accounts (traditional IRAs, Roth IRAs, and SEP IRAs). Plus, investors now have the option to link external 401(k)s, IRAs, and brokerage accounts. It also has custodial account options.
Investors who already have a TD Ameritrade, Fidelity, or Charles Schwab brokerage accounts can easily connect with SigFig for automated investing. If you don’t have an account with any of its partnered brokerages, SigFig will open you a TD Ameritrade account.
Most automated investing platforms offer ETFs, and SigFig is no different. SigFig offers a blend of stock ETFs and bond ETFs, and other investment types. The platform aims to invest mainly in commission-free index-based ETFs and REITs from its brokerage partners.
SigFig asset classes include:
- US stocks
- US bonds
- US municipal bonds
- Real estate
- International developed market stocks
- International emerging market stock
- Short-term treasuries
- Treasury inflation-protected securities (TIPS)
- Emerging market debt
SigFig does not offer margin trading, futures, options, fractional shares, or cryptocurrencies.
SigFig: Is it Trustworthy?
SigFig has an A+ rating with the Better Business Bureau. The BBB’s rating range from A+ to F, so SigFig has received the highest possible score. However, it is not BBB accredited.
The bureau takes into consideration the type of business, time in business, licensing and government issues, and advertising issues. Also, the BBB says on its website that ratings don’t guarantee whether a company will be reliable or perform well. So it’s important to do additional research when determining whether or not to use an investment app.
SigFig has never been part of a public lawsuit. At this time, there are zero complaints closed in the last 12 months.
SigFig — Frequently Asked Questions (FAQ)
SigFig may be worth it for new investors interested in passive trading of low-cost ETFs and REITs. Although the account minimum of $2,000 is higher than similar robo-advisors, SigFig has a low annual management fee and gives investors access to great financial tools and resources (such as unlimited access to financial advisors).
SigFig is not ideal for advanced investors or those looking for hands-on trading.
Originally founded as Wikinvest in 2006, SigFig is a robo-advising platform for low-cost ETFs and REITs. The company is based in San Fransico and currently has 175+ employees and is available in four countries (United States, Canada, India, and Singapore).
You can link your bank’s checking or savings account to your SigFig account in order to make withdrawals and deposits.
To make a withdrawal, log into your SigFig account and go to the “Managed” tab on the left. Then click on the small gear icon on the right side of the screen and select “Withdraw” and enter your desired amount. Your funds should appear in your bank account three to four days later.
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SigFig Investing Review 2023
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