Just how new are "robo" advisors? Give Vanguard some credit.

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Rick Ferri
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Just how new are "robo" advisors? Give Vanguard some credit.

Post by Rick Ferri »

The new breed of stand-alone robo advisers are automated investment solutions that allow people to go online, complete a questionnaire, receive an investment recommendation, and implement the strategy, typically using portfolios of exchange-traded funds–without ever speaking to a human being. Computers manage your ETF-only portfolio by providing a variety of ongoing, automated functions such as maintaining your allocations and managing regular deposits and withdrawals.

Robo-adviser technology is being positioned as new and revolutionary by the companies that offer these services, but the ability to automate investing is neither new nor revolutionary. It started decades ago in the mutual-fund industry, and Vanguard was at the forefront....

Except from the WSJ on-line: Robo Advisers: A New Take on an Old Idea.

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
staybalanced
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Joined: Wed Jan 14, 2015 6:36 am

Re: Just how new are "robo" advisors? Give Vanguard some credit.

Post by staybalanced »

"
Rick Ferri wrote:The new breed of stand-alone robo advisers are automated investment solutions that allow people to go online, complete a questionnaire, receive an investment recommendation, and implement the strategy, typically using portfolios of exchange-traded funds–without ever speaking to a human being. Computers manage your ETF-only portfolio by providing a variety of ongoing, automated functions such as maintaining your allocations and managing regular deposits and withdrawals.

Robo-adviser technology is being positioned as new and revolutionary by the companies that offer these services, but the ability to automate investing is neither new nor revolutionary. It started decades ago in the mutual-fund industry, and Vanguard was at the forefront....

Except from the WSJ on-line: Robo Advisers: A New Take on an Old Idea.

Rick Ferri
"

Good objective article Rick. I believe blackrock has had a tool for several years that will show recommended ishares etf allocations as well. The days of a 1.5% AUM fee from the big wire houses is in jeopardy!
gwrvmd
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Re: Just how new are "robo" advisors? Give Vanguard some credit.

Post by gwrvmd »

Good post Rick.
You could also include as advantages what they won't do/will avoid: No front end loads, no high ER fees, no insurance policies, no annuities and no SMA (Separate Managed Accounts)......That alone means Robo advisors with ETFs are a pretty good start for many people..........Gordon
Disciple of John Neff
M B
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Re: Just how new are "robo" advisors? Give Vanguard some credit.

Post by M B »

The single biggest reason why startups succeed is timing. Robo-advisors ten or twenty years ago were simply too early to have much of an impact.
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