Robo Advisor WiseBanyan Portfolios, Is Free Better?

robo-advisor-WiseBanyan-Portfolios

The portfolios of robo advisor WiseBanyan were a welcome addition to the robo advisor space. In this article we the portfolios by robo advisor WiseBanyan. Here you will find a description, resources, and performance for the portfolios as well as detailed information on how to implement them yourself.

Robo Advisor WiseBanyan Portfolios, Is Free Better?

WiseBanyan was a newcomer to the robo advisor space. Established in 2013. They were the only (so far), fee-based robo advisor. This means you don’t pay anything to have your money managed. That’s pretty amazing – and as it turned out not sustainable (see below).

Their name was taken from the banyan tree.

We chose the banyan tree as a symbol of strength and stability. It also has deep roots that grow down from the limbs, so the imagery of putting down financial roots was what we were going for.

– Herbert Moore, Co-founder of WiseBanyan

wise-banyan-tree-robo-advisor
The proud Banyan tree. Photo by the talented Kim Seng

In 2018 WiseBanyan cashed out and let Axos Financial buy them. Axos has merged WiseBanyan into its own robo service Axosinvest.

Just like WiseBanyan, Axos offer free money management. I’ll let you read the fine print on that too good to be the true promise.

Axos Financial is a rebranding of the former BofI bank (bank of Internet, U.S.A.). It has enjoyed a huge success due to its low-cost structure and agile mode of operations.

Description of robo advisor WiseBanyan portfolios

Their portfolios are simple and easy to understand without any special asset classes in contrast to Betterment and Wealthfront. Wealthfront and Betterment, for example, use emerging market bonds. For a comparison of robo advisors, you should check out our overview Robo Advisor Performance.

At the time WiseBanyon did not offer a portfolio with a 100% stock allocation so we cannot expect these portfolios to break any return records. But do notice their low-risk portfolio. These are all very high performing with minimum downside risk.

Performance of robo advisor WiseBanyan portfolios

NameAsset class countYear to dateReturn in 201910 year returnCAGR since 1989 (%)Risk levelExpense ratio
Robo Advisor WiseBanyan 90% stocks94.3125.519.78%8.8330.05%
Robo Advisor WiseBanyan 80% stocks94.2623.879.29%8.7330.06%
Robo Advisor WiseBanyan 70% stocks94.2522.128.74%8.5620.07%
Robo Advisor WiseBanyan 60% stocks94.2120.458.21%8.3720.08%
Robo Advisor WiseBanyan 50% stocks94.2218.667.61%8.1320.09%
Robo Advisor WiseBanyan 40% stocks94.4616.896.99%7.8610.10%
Robo Advisor WiseBanyan 30% stocks94.7715.036.31%7.5310.09%
Robo Advisor WiseBanyan 20% stocks94.9712.815.47%7.0710.09%
Robo Advisor WiseBanyan 13% stocks94.5610.144.34%6.3610.07%

Building the portfolio(s)

Below you can see the asset allocations for the portfolio(s). You can also see if the portfolio(s) has a socially responsible investing (ESG) variant portfolio. You can read more about socially responsible investing (ESG) investment portfolios in this post.
To build the portfolio(s) yourself, go to our best in class ETF page to see which ETF you should choose for a particular asset class. There you can also see which socially responsible investing ESG ETFs you should select.

Asset allocation robo advisor WiseBanyan portfolios

Robo Advisor WiseBanyan 90% stocks

  • 53.40%  US Total Stock Market   (VTI)
  • 0.80%    REITs (Real Estate)           (VNQ)
  • 29.00%  Int. Developed Blend      (VEA)
  • 6.70%    Emerging Markets           (VWO)
  • 2.80%    Intermediate-Term Treasury       (VGIT)
  • 3.20%    Corporate Bonds              (LQD)
  • 0.20%    Short-Term Investment-Grade   (VCSH)
  • 1.60%    High Yield Corporate Bonds         (HYG)
  • 2.30%    TIPS       (VTIP)

Robo Advisor WiseBanyan 80% stocks

  • 46.90%  US Total Stock Market   (VTI)
  • 2.00%    REITs (Real Estate)           (VNQ)
  • 25.40%  Int. Developed Blend      (VEA)
  • 5.90%    Emerging Markets           (VWO)
  • 5.30%    Intermediate-Term Treasury       (VGIT)
  • 6.00%    Corporate Bonds              (LQD)
  • 1.40%    Short-Term Investment-Grade   (VCSH)
  • 2.80%    High Yield Corporate Bonds         (HYG)
  • 4.30%    TIPS       (VTIP)

Robo Advisor WiseBanyan 70% stocks

  • 40.30%  US Total Stock Market   (VTI)
  • 3.10%    REITs (Real Estate)           (VNQ)
  • 21.90%  Int. Developed Blend      (VEA)
  • 5.00%    Emerging Markets           (VWO)
  • 7.90%    Intermediate-Term Treasury       (VGIT)
  • 8.80%    Corporate Bonds              (LQD)
  • 3.40%    Short-Term Investment-Grade   (VCSH)
  • 3.30%    High Yield Corporate Bonds         (HYG)
  • 6.30%    TIPS       (VTIP)

Robo Advisor WiseBanyan 60% stocks

  • 33.90%  US Total Stock Market   (VTI)
  • 4.10%    REITs (Real Estate)           (VNQ)
  • 18.30%  Int. Developed Blend      (VEA)
  • 4.20%    Emerging Markets           (VWO)
  • 10.10%  Intermediate-Term Treasury       (VGIT)
  • 11.40%  Corporate Bonds              (LQD)
  • 5.30%    Short-Term Investment-Grade   (VCSH)
  • 4.60%    High Yield Corporate Bonds         (HYG)
  • 8.10%    TIPS       (VTIP)

Robo Advisor WiseBanyan 50% stocks

  • 27.20%  US Total Stock Market   (VTI)
  • 4.70%    REITs (Real Estate)           (VNQ)
  • 14.80%  Int. Developed Blend      (VEA)
  • 3.40%    Emerging Markets           (VWO)
  • 12.70%  Intermediate-Term Treasury       (VGIT)
  • 14.20%  Corporate Bonds              (LQD)
  • 6.90%    Short-Term Investment-Grade   (VCSH)
  • 6.00%    High Yield Corporate Bonds         (HYG)
  • 10.10%  TIPS       (VTIP)

Robo Advisor WiseBanyan 40% stocks

  • 21.30%  US Total Stock Market   (VTI)
  • 4.40%    REITs (Real Estate)           (VNQ)
  • 11.50%  Int. Developed Blend      (VEA)
  • 2.70%    Emerging Markets           (VWO)
  • 15.80%  Intermediate-Term Treasury       (VGIT)
  • 17.60%  Corporate Bonds              (LQD)
  • 7.50%    Short-Term Investment-Grade   (VCSH)
  • 6.60%    High Yield Corporate Bonds         (HYG)
  • 12.60%  TIPS       (VTIP)

Robo Advisor WiseBanyan 30% stocks

  • 15.80%  US Total Stock Market   (VTI)
  • 4.00%    REITs (Real Estate)           (VNQ)
  • 8.60%    Int. Developed Blend      (VEA)
  • 2.00%    Emerging Markets           (VWO)
  • 18.60%  Intermediate-Term Treasury       (VGIT)
  • 20.80%  Corporate Bonds              (LQD)
  • 10.10%  Short-Term Investment-Grade   (VCSH)
  • 5.20%    High Yield Corporate Bonds         (HYG)
  • 14.90%  TIPS       (VTIP)

Robo Advisor WiseBanyan 20% stocks

  • 9.90%    US Total Stock Market   (VTI)
  • 4.00%    REITs (Real Estate)           (VNQ)
  • 5.30%    Int. Developed Blend      (VEA)
  • 1.20%    Emerging Markets           (VWO)
  • 19.90%  Intermediate-Term Treasury       (VGIT)
  • 22.30%  Corporate Bonds              (LQD)
  • 18.80%  Short-Term Investment-Grade   (VCSH)
  • 2.70%    High Yield Corporate Bonds         (HYG)
  • 15.90%  TIPS       (VTIP)

Robo Advisor WiseBanyan Aggressive 13% stocks

  • 5.50%    US Total Stock Market   (VTI)
  • 3.60%    REITs (Real Estate)           (VNQ)
  • 3.00%    Int. Developed Blend      (VEA)
  • 0.70%    Emerging Markets           (VWO)
  • 16.20%  Intermediate-Term Treasury       (VGIT)
  • 14.50%  Short Term Treasury       (VGSH)
  • 18.10%  Corporate Bonds              (LQD)
  • 25.60%  Short-Term Investment-Grade   (VCSH)
  • 12.80%  TIPS       (VTIP)

How we select the right ETFs

There are a lot of ETFs out there. Most of them can be discarded because:

  • They are too expensive
  • They hold too few assets and are therefore too illiquid
  • They do not meet the criteria for representing the asset class they are supposed to mirror.

We have carefully selected an ETF for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?

If you are a European investor you need to buy European ETFs. We list 47 best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).

As of 2020 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social and corporate governance issues.

You can find the socially responsible investing ESG ETFs in the same article.

Resources for robo advisor WiseBanyan portfolios

You can get an overview of robo advisors in the article Robo Advisor Performance.

Suggestions for your next steps

Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful. Rebalancing your portfolio lowers your risk and may even provide higher returns in the long run.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool

Conclusion

Although WiseBanyan does not exist anymore their portfolios live on.

Their low-risk portfolios are especially noteworthy for their high return and low volatility

Could you use one of their portfolios for your savings?

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