SigFig vs. SoFi Review

SigFig vs SoFi: Which is right for you?

SigFig and SoFi offer robo-advisor services for investors who want online portfolio management. This article compares each firm’s service models, fees, minimums, key services, technology, and security.

Here is a breakdown of the key differences between the two companies:

SigFig vs. SoFi: Key services

SigFig centers the robo experience on portfolio analytics and optional tax-loss harvesting. 

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.

SoFi centres the robo experience on automated model portfolios, online account servicing, and a disclosed wrap-fee structure.

SoFi:

• Robo Investing: An automated online investment advisory program that assigns clients to a managed model portfolio.
• Automatic portfolio management: SoFi makes initial investments, invests later deposits, rebalances the account, and updates accounts when model portfolios change.
• Three portfolio options: Classic, Classic + Alternatives, and Sustainable Investing.
• Model portfolio construction: Portfolios mainly use mutual funds and ETFs, with investment selection and allocation overseen through SoFi’s investment process.

SigFig vs. SoFi: Fees

SigFig’s website presents a clear headline fee, while SoFi’s robo fee is disclosed as a single 0.25% annual wrap fee.

SigFig:

• First $10,000: No management fee
• More than $10,000: Management fee is 0.25% annually
• 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

SoFi:

• Main robo-advisor fee: 0.25% annual wrap fee
• Fund expenses: Mutual fund and ETF expenses may apply

SigFig vs. SoFi: Minimum account sizes

The minimum-account difference is straightforward.

SigFig vs. SoFi: Pros and cons

Here is a look at the pros and cons of both SigFig and SoFi to help you decide which is the right fit for you.

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.

Pros of SoFi

• No account minimum: The robo service does not disclose a required minimum account size.
• Automated fund portfolios: Portfolios are built with ETFs and automatically rebalanced to stay aligned with investor goals.
• Simple portfolio menu: Classic, Classic & Alternatives, and Sustainable Investing give clients a limited but clear set of choices.

Cons of SoFi:

• Additional fees can apply: The wrap fee does not cover certain third-party, Apex, fund, and legal or exchange-related charges.
• Limited investment menu: The robo program uses a limited set of mutual funds and/or ETFs, which may not fit investors who want broader investment choice.
• Not designed for complex needs: SoFi states the robo program is generally not for clients with more complex needs or those who prefer in-person advisor interactions.

SigFig vs. SoFi: Technology and security

SigFig’s digital experience emphasizes linked-account portfolio tracking and analysis. Users can link external brokerage accounts, view holdings, track performance, review portfolio analytics, and access managed-account information through its web platform and mobile apps.

SoFi’s robo technology is structured around its own online platform and mobile app. Clients complete an online questionnaire, get assigned to a model portfolio, and SoFi manages deposits, monitoring, rebalancing, and model updates.

For security, SigFig states that managed accounts come with SIPC coverage. Client assets are held by qualified custodians.

SoFi provides more specific account-login controls, it maintains technical and physical safeguards for account security, including two-factor authentication (2FA) and biometric login. It also highlights 24/7 account monitoring and SIPC protection for investments up to $500,000, including $250,000 for cash claims.

Final verdict: SigFig vs SoFi

SigFig and SoFi are both robo-advisor services, but they differ in entry point, fee disclosure, and digital tools. 

SigFig combines automated portfolio management with linked-account tracking, portfolio analytics, and optional tax-loss harvesting. It lists a 0.25% annual management fee after the first $10,000, while its ADV allows fees to vary by client agreement. 

SoFi focuses on online model portfolio management with no disclosed account minimum and a single 0.25% annual wrap fee. SigFig generally requires $2,000 to start, while SoFi has no account minimum.

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