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