About a year ago, I put part of my portfolio into Robinhood’s managed investing account as an experiment.
The account is currently up 22.29%.
Over roughly the same timeframe, SPY is up about 26.46%. So far, simply buying SPY would have produced a better return.
It has me wondering how people judge managed portfolios. Is underperforming SPY automatically a failure? Or do diversification, risk, and how the portfolio performs in different market conditions matter more over the long term?
Obviously one year isn’t enough to make a final judgment, but I’m curious:
What would a managed portfolio need to do for you to choose it over simply buying SPY?