Personal Capital vs. SigFig: Which is right for you?
Personal Capital is now part of Empower. For this comparison, Personal Capital refers to Empower’s personal wealth offering: Empower Personal Strategy, an advisor-led digital wealth management service, and the free Empower Personal Dashboard, which provides account aggregation and financial planning tools.
SigFig is a robo-advisory portfolio management service. It uses a digital platform to create, monitor, and rebalance investment portfolios based on a client’s risk profile, investment information, and account data.
What are the key differences between Personal Capital and SigFig?
Here is a breakdown of the key differences between the two companies:
Feature | Personal Capital | SigFig |
|---|---|---|
Service type | Advisor-led digital wealth management and free financial dashboard | Robo-advisor and discretionary digital portfolio management |
Fees | Personal dashboard is free; Personal Strategy charges 0.89% for $100,000–$999,999, with Private Client tiered rates from 0.79% to 0.49% for $1 million+ accounts. | $10,000 or more may pay 0.25% annual fee. |
Minimum account size | $100K for Personal strategy | $2,000 |
Suitable for | Users who want financial planning tools and, at higher balances, advisor-led portfolio management | Users who want robo management connected to portfolio tracking and account analysis |
Personal Capital vs. SigFig: Key services
Here is a look at some of the key services offered by both firms.
Personal Capital:
- Dashboard tools: Empower personal dashboard helps users track their financial picture with budgeting, retirement, net worth, cash flow, portfolio, savings, debt, emergency fund, and transaction tools.
- Portfolio management: Empower Personal Strategy provides customized portfolios, Smart Weighting, daily portfolio monitoring, disciplined rebalancing, dynamic portfolio allocation, and flexible portfolio options.
- Financial planning support: The service includes financial planning education and, at higher tiers, broader planning support for retirement, college planning, tax optimization, legacy planning, and estate planning.
- Tax-focused features: Empower includes tax optimization and tax-loss harvesting, where applicable
SigFig:
- Model portfolios: SigFig currently provides advice for model portfolios that include mainly mutual funds and ETFs, with some individual stocks and other holdings.
- Rebalancing: SigFig monitors managed accounts and rebalances portfolios when needed.
- Free portfolio tracking: Users can link external brokerage accounts to SigFig’s platform to view holdings and portfolio information.
- Tax-loss harvesting: SigFig provides tax-loss harvesting where applicable.
Overall, Empower Personal Strategy centers on advisor-led wealth management with digital tools, while SigFig centers on robo-advisory portfolio management.
Personal Capital vs. SigFig: Fees
Personal Capital uses a disclosed asset-based advisory fee schedule. SigFig uses a flat fee or AUM-based fee, but clients must review their investment advisory agreement for the exact fee schedule.
Personal Capital:
Client tier | Account size | Annual advisory fee |
|---|---|---|
Investment services clients | $100,000–$249,999 | 0.89% |
Wealth management clients | $250,000–$999,999 | 0.89% |
Private clients | First $3 million | 0.79% |
Private clients | Next $2 million | 0.69% |
Private clients | Next $5 million | 0.59% |
Private clients | Amount over $10 million | 0.49% |
SigFig:
SigFig fee item | Fee disclosed |
|---|---|
First $10,000 managed | No management fee |
Balance above $10,000 | 0.25% annual management fee |
ETF expense ratios | Average embedded ETF expense ratio of 0.07% to 0.15%, depending on brokerage |
Flat fee | Generally, no greater than 0.50% of assets under management |
Personal Capital vs. SigFig: Minimum account sizes
Personal Capital and SigFig use different account thresholds. Personal’s service starts with a larger advisory relationship, while SigFig’s robo-advisory service has a lower stated investment minimum.
Personal Capital:
- Investment Services: $100,000 minimum
- Wealth Management: $250,000 minimum
- Private Client: $1 million minimum
SigFig:
- Standard robo-advisor minimum general is $2,000
Personal Capital vs. SigFig: Pros and cons
Here is a look at the pros and cons of both Personal Capital and SigFig to help you decide which is the right fit for you.
Pros of Personal Capital:
- Advisor access: Clients receive a personal financial advisor or advisor team rather than relying only on automated guidance.
- Planning scope: The service includes portfolio management, planning education, tax optimization, and dashboard-based financial tools.
- Portfolio personalization: Clients may access portfolio personalization, Smart Weighting, socially responsible investing, and market-cap-weighted options where applicable.
- Fee clarity: The Personal Strategy fee schedule is publicly disclosed by asset tier.
Cons of Personal Capital:
- Higher minimum: The general $100,000 minimum limits access for investors with smaller balances.
- Layered cost structure: The advisory fee is tiered, and the total cost can also include ETF expense ratios and other investment-level expenses.
- Tier-based service access: Some planning, portfolio, and private client features depend on the client’s account tier.
Pros of SigFig:
- Free portfolio tracker: SigFig states that portfolio tracking is provided without charge.
- Discretionary management: Clients do not simply receive suggestions; SigFig can manage, trade, and rebalance the managed account under the advisory agreement.
- Tax-aware features: Optional tax-loss harvesting is available where activated and applicable, though clients remain responsible for tax consequences.
Cons of SigFig:
- Account minimum: SigFig generally requires a $2,000 minimum investment for managed accounts, which may be a barrier for investors starting with smaller balances.
- Limited advisory scope: SigFig’s advice is currently focused on model portfolios, primarily mutual funds and ETFs, rather than broad financial planning.
- Fee schedule not fully simple: Clients may pay a flat fee or asset-based fee, generally no greater than 0.50% of AUM, while fee arrangements may vary by agreement.
Personal Capital vs. SigFig: Technology and security
Personal Capital is designed for users who expect dashboard tools plus human advisory guidance.
Personal Capital:
- Personal Dashboard: Empower personal dashboard lets users connect accounts and view investments, cash, credit, portfolio activity, trades, performance, income, balances, and projections in one place.
- Advisor-linked digital experience: Personal strategy combines digital tools with advisor access, so users can use the dashboard while also working with a financial advisor or advisor team.
- Security controls: Empower discloses multifactor authentication, AES-256 encryption with multifactor key management, independent security audits, real-time fraud analysis, and SOC 2 Type II reporting.
- Custody: Client assets are generally held with Pershing Advisor Solutions, an unaffiliated qualified custodian, rather than directly by Empower.
SigFig targets users who expect a robo-advisory platform focused on managed portfolios.
SigFig:
- Client-facing tech: SigFig offers a web platform and mobile apps. Users can link external brokerage accounts, view holdings, track performance, review portfolio analytics, and access managed-account information.
- Brokerage connection: SigFig requires brokerage credentials to create a secure connection with the user’s brokerage and import financial information.
- Account control: SigFig states that only the client can direct cash movements into or out of a SigFig Managed Account.
- Custody and SIPC: The broker-dealers used as custodians for SigFig accounts are SIPC members.
- Usability: SigFig’s technology is built around linked-account portfolio tracking, portfolio analysis, and automated portfolio management.
Final verdict: Personal Capital vs. SigFig
The core trade-off is advisor-led planning and customization versus lower-minimum digital portfolio management.
Personal Capital may suit investors who want:
- Advisor access through a personal financial advisor or advisor team.
- Managed portfolios with planning support, tax optimization, and dashboard tools.
- A disclosed tiered fee schedule for an advisor-led wealth management service.
SigFig may suit investors who want:
- Robo-advisory portfolio management with a generally lower stated minimum.
- Digital portfolio recommendations based on a risk profile questionnaire.
- Automated rebalancing and optional tax-loss harvesting for eligible taxable accounts.
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