SigFig Logo

About SigFig

SigFig is the easiest way to manage and improve your investments. Just link your 410(k), IRA, trading, and advisor-managed accounts to SigFig and, in less than 60 seconds, we’ll give you a real-time view of all your investments and start recommending ways to tune-up your portfolio.

View product »

Overall Rating
Editor Rated
Consumer Rated
  • Zachary Ehrlich's Profile Image

    By Zachary Ehrlich, Aug 14th 2012

    Editor Rating

    As a free, read-only service, SigFig has mastered the limited useful features that it can and does provide for investors. Whatever level investor, SigFig will sync with your 401(k), IRA, brokerage and any advisers you use, and will analyze your portfolio to find how you can make more money. All your accounts will be visible on a single dashboard along with the amount, today’s change and overall percentage change.

    SigFig then finds hidden fees and charges along with other brokerages that will perform the same tasks for less. You may get a diagnosis that says, “Your adviser charges 60% more than others, yet did not beat the markets,” and then recommends one that has performed better. Should you take their advice, SigFig receives commission from the adviser you switch to in exchange for the extra business at no cost to you.

    SigFig grew out of investing information site, Wikinvest, and makes that information even more personal, as you can aggregate all your accounts and not just your brokerage. You will receive weekly status reports and have access to a suite of impressive apps. Even if you do not act on any of their advice, at the very least you will have a sleek new tool to manage all your account information while keeping an eye on the markets.

    Pros Cons
    Free Not yet available for all brokerages
    Extremely well-designed and accessible Can’t trade, transfer or withdraw funds
    Mobile apps - and more on the way Revenue determined by brokerages

    Fees/Accessibility

    Free.

    Strictly an educational tool, SigFig does not cost money since you will not invest any money with SigFig. The service makes money by saving you money - i.e. compensation if you switch brokerages or advisers. Anyone can join SigFig as long as they invest money with supported brokerages and advisers.

    Mobile/Functionality

    SigFig is a leader in functionality all the way down to mobile in the social investing space, as their tool is strictly educational and benefits tremendously from its mobile presence. The site and supporting apps are extremely fluid, well-designed and extensive. They already have apps for iPhone, Android phones, and Windows tablets and are currently working to expand that to the iPad, Android tablets, Windows phones, the Kindle Fire and the Nook. SigFig hopes to be the most ubiquitous in managing and understanding your investments, and a third of the SigFig team works solely on mobile across every major platform. The apps are free and utilize each system’s unique interface to help you manage your portfolio.

    Minimum Investment Requirements/Breadth

    As a free service, SigFig does not care how much money is in your portfolio when using their service. You can add as many accounts for SigFig to analyze and the more money and accounts you show them, the more savings they can find. SigFig already manages data for $30 billion worth of assets and investments. A review posted here delineates which brokers synced successfully, and which were not supported by SigFig. The major ones like E*Trade and Vanguard were covered, but others like Interactive Brokers (Covestor’s trader) was not. Interesting, since this prohibits you from following your trades on Covestor with SigFig.

    Connectivity/Guidance

    SigFig is essentially a guide on how to manage your investments with specially tailored fund and stock advice. It will tell you which investments are underperforming or have high fees and suggest alternatives. SigFig ensures its advice is completely data-driven and unbiased and results will not be sponsored or altered by a supported brokerage. Linking accounts from the supported companies is another one of SigFig’s specialties and is especially easy and safe, as this is a read-only site and none of your money can be touched. SigFig stresses that not even an employee can view account numbers or log-in passwords, so you know no one can alter your accounts through their service (not even yourself). SigFig provides you with a performance overview, detailed charts with your asset allocation and comparison to stock indexes, and holdings tables (customizable to include pretty much anything you want to analyze). For the serious investor, the level of detail is wonderful.

    Education

    SigFig is a purely educational tool, so their marks in this area are high. However, keep in mind they do not allow you to act on their advice through their own site. SigFig has a complex and detailed algorithm to determine whether a mutual fund, brokerage or financial advisor are not making you as much money as possible. They also uncover hidden fees for you to avoid. Briefly, this is how SigFig discovers ways for you to save money:

    • Mutual funds/ETF - SigFig analyzes your fund compared to funds in the same class based on fees, 3-year historical returns, Sharpe ratio, third party ratings from Lipper and how much it would cost if you were to switch.
    • Brokerages - SigFig will simulate your last 12 months of trading across other large brokerage firms to find out which will make the most money for your bottom line. Then it analyzes assets you can trade for less through other brokerages, who has lower trading fees, and how to save without having to switch brokerages.
    • Financial advisers - Since there is very little visibility in comparing advisers, SigFig has built a network of financial advisers by reviewing SEC filings, interviewing firms and performing annual reviews. SigFig can only compare your adviser to one within their network and will only show you relevant competition based on management fees. Once it has identified your class, it will compare adviser fees and historical performance. You can also request a portfolio review to find the right adviser for your investing needs.

    SigFig is a powerful tool because of the unbiased advice and education it provides. SigFig allows you to see all your investments on one site (or app) without fear of fraud.

    The Breakdown

    Accessibility
    1
    2
    3
    4
    5
    Functionality
    1
    2
    3
    4
    5
    Breadth
    1
    2
    3
    4
    5
    Guidance
    1
    2
    3
    4
    5
    Education
    1
    2
    3
    4
    5

    Your opinion matters!

    Post a Review