Diversified Wealth Management: Hedgeable vs. Robo-Advisors like Schwab and Wealthfront

Introduction

As the financial landscape evolves, so do the tools and approaches to wealth management. Among the many options available, robo-advisors stand out for their automated, cost-effective, and user-friendly services. However, smaller, niche firms often bring unique strategies to the table, providing a more personalized and versatile approach to investing. In this article, we will explore how Hedgeable, a wealth management firm I co-founded in 2009, compares to well-known robo-advisors like Wealthfront and Schwab in terms of investment strategies and diversification.

Hedgeable: A Diverse Approach to Wealth Management

Hedgeable, the firm I co-founded, offers a unique perspective on wealth management. Unlike traditional robo-advisors, which largely stick to exchange-traded funds (ETFs), Hedgeable takes a more diversified and customizable approach. Our portfolio includes not only ETFs but also a wide range of asset classes tailored to each client's preferences and financial goals.

Investment Strategies Beyond ETFs

Hedgeable invests in a variety of asset classes, including:

Equities (individual names) Master Limited Partnerships (MLPs) Real Estate Investment Trusts (REITs) Bitcoin and other cryptocurrencies Private Equity

The exact mix of these asset classes is customized for each client, making our approach highly personalized and flexible. Many of these asset classes are optional, giving our clients the freedom to choose the investment strategies that best fit their risk tolerance and financial objectives.

Comprehensive Diversification

One of the key advantages of Hedgeable is our ability to offer a diverse mix of security types. Unlike traditional robo-advisors, which often limit their investment offerings to ETFs, Hedgeable provides a broader range of opportunities. This diversification helps to minimize risks and can potentially enhance overall returns.

How Hedgeable Compares to Robo-Advisors

Let's take a closer look at how Hedgeable differs from well-known robo-advisors such as Wealthfront and Schwab:

Comparison: Hedgeable vs. Wealthfront

Hedgeable: Offers a wide range of asset classes including equities, MLPs, REITs, cryptocurrencies, and private equity. Our approach is highly customizable, allowing us to tailor portfolios to individual client needs.

Wealthfront: Primarily focuses on ETFs and index funds, providing a more limited set of investment options. While Wealthfront is highly automated and user-friendly, it may not offer the same level of diversification as Hedgeable.

Comparison: Hedgeable vs. Schwab

Hedgeable: With our diverse mix of investments, we provide a more comprehensive approach to wealth management. Our services are designed to meet a wide range of client needs, from long-term savings to high-risk, high-reward investments.

Swab: Schwab offers a broad range of investment products, including ETFs, mutual funds, and individual stocks. However, Schwab's services are typically geared towards a broader audience, and their investment strategies are often more standardized. While Schwab provides robust financial planning tools, their offering may not be as finely tuned to individual client goals as Hedgeable's service.

Conclusion

When it comes to wealth management, the approach you choose can significantly impact your financial success. Hedgeable, with its diverse and customizable offering, stands out as a unique and valuable option for those seeking a more personalized and strategic approach to investing. If you are looking for a wealth management service that can adapt to your individual needs and preferences, Hedgeable may be the perfect choice for you.