MarketRiders.com is a unique online portfolio management program that offers certain features typically found at full-service wealth management firms. The site recommends a portfolio based on a questionnaire designed to assess your risk/reward profile. In addition, MarketRiders.com suggests using ETFs and investing in asset classes rather than holding individual stocks.
After creating a MarketRiders.com account, you will be asked whether you prefer the website to create a portfolio for you or whether you prefer creating the portfolio yourself. Opting to have the website create a portfolio will bring you to four simple questions involving your age, investment time horizon and risk tolerance. After finishing the process, MarketRiders.com will provide a breakdown of its suggested asset allocation as well as the performance data on how this particular asset allocation performed for the previous 12 months. The website also provides a description of the focus of the asset allocation (growth, income, etc.)
The next screen allows you to choose your broker. After choosing a broker, the website lists specific ETFs in each asset class. At the bottom of the page, the website presents the income generated by this portfolio for the past 12 months as well as the cost associated with implementing the portfolio at your specified broker.
When your portfolio is completed, MarketRiders.com will assist you in managing and rebalancing. As investments grow, it is natural that the asset allocation will become unbalanced. The website can help you bring your asset allocation back on target, even if you are adding or withdrawing money, by showing you exactly how you need to balance your funds. Furthermore, users can update their questionnaire periodically to tweak the target asset allocation.
One major downside of the website is that it only follows ETFs. MarketRiders.com suggests that investors use ETFs for their core holdings to generate long-term growth using a strict, targeted asset allocation. The website is easy to use and you can sign up for a 30-day free trial.
Price: $14.95/month; free 30-day trial