What is a Robo Advisor?
A Robo Advisor is an investment service that provides automated portfolio management without human intervention of discretion. The portfolio is managed by computer algorithms which determine the securities held and the allocation for each security.
OmniFunds is considered by many as a Robo Advisor, although we are different in many ways from the most popular Robo's.
How is OmniFunds different from other Robo Advisors?
While OmniFunds may fall into the Robo Advisor category, we are in fact different in very many ways.
- Robo Advisors will put you in a basket of ETFs (Exchange Traded Funds) which you will continue to hold throughout the life of your account. OmniFunds will re-evaluate your portfolio at a specific interval (usually monthly) and switch the securities that have the highest probability of success.
- Robo Advisors allocate between ETFs based a method called Modern Portfolio Theory (MPT). This theory was developed in the 50’s, and has not been adjusted even with all of the changes to the financial markets since that time. OmniFunds allocates based on a proprietary method called Advanced Portfolio Theory (APT) which is based on the current correlation of the securities in your portfolio. Learn more about the vast differences between MPT and APT here.
- Robo Advisors leave in the ETFs they have selected for you regardless of what the financial markets are doing. This can lead to large, and unnecessary, losses. OmniFunds employs a concept called Market States. With Market States, we can adjust our holdings based on the behavior of the broad market. Learn more about the power of Market States here.
These are just a few of the many differences between most Robo Advisors and OmniFunds. Explore our website and you’ll see that we offer what you are really looking for in an investments service: a modern approach that is determined to provide higher returns while constantly looking to minimize your market risk.
What broker do you use?
OmniFunds currently uses Interactive Brokers through Gar Wood Securities. Gar Wood is known for the quality of its trade execution and prime brokerage business, and it is well recognized in several industry surveys as a top broker in client services. You can learn more about Gar Wood Securities here.
Do you offer advice on how to invest?
OmniFunds is a completely automated investment platform. While we do not offer advice on what OmniFund to use or which securities to buy or sell, we have configured our OmniFunds in order to position you for the best chance of success.
How can I get in touch with you?
If you have any questions about the OmniFunds platform, just send us an email at firstname.lastname@example.org and we’ll be happy to answer your question within 24 business hours. For other ways to contact us, please click on the About Us link on the main menu.
Can I change the OmniFund that I am using on my account?
At any time you can either adjust the risk meter on the current OmniFund that you are using, or you can change OmniFunds completely. Simply log in and go to your account. It will show the current OmniFund and risk setting that you are using, and there will be a “Change” button that you can click on to make any changes. Any edits or changes will be implemented to next market day at the open.
NOTE: Transaction costs will apply if triggered by the edit or change.
How often will an OmniFund re-balance or switch its holding?
Our current OmniFunds will analyze current and potential holdings. Based on this analysis, an OmniFund may adjust current position size or change the securities being held.
There is also the possibility that an OmniFund will make adjustments during the month if a Market State changes. While a Market State change will not occur often, if this were to happen it can cause an OmniFund to change holdings or adjust position size. To learn more about Market States, please visit our How it Works page.
This website is operated and maintained by Intelligent Fund Management LLC. Brokerage services provided to clients of Intelligent Fund Management LLC by Gar Wood Securities, an SEC registered broker-dealer and member FINRA/SIPC.Investments: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and OmniFund’s charges and expenses. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. See full disclosures for more information. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where OmniFunds is not registered. Contact: Intelligent Fund Management, 9111 Jollyville Rd, Suite 275 Austin, TX 78759. Tel: 800-880-0338