Tag: Robo Advisor

Posted on January 6, 2020

Ranked #2 for First Time Investors

Overview

Originally a consumer lending platform, SoFi has since expanded to offer investment management services.  Although it is significantly smaller than SoFi’s lending platform, SoFi Invest has attracted $79 million in assets under management and over 19,000 accounts, according to its latest ADV filing. SoFi has also introduced four proprietary ETFs, two of which are included in their SoFi Invest portfolios.  SoFi has recently partnered with two fintech insurance firms to offer homeowners, renters, and auto insurance.  Additionally, SoFi offers its customers a zero-commission, self-directed trading platform.   

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Posted on December 27, 2019

Ranked #3 for Best Overall Robo


Overview: 

SigFig started as an offshoot of Wikinvest, a Wikipedia-style resource for investors.  Launched in 2012 as a free portfolio tracking and investment advisor referral service, SigFig is now one of the original robo advisors still in operation.  Between its platform and strategic partnerships with incumbent institutions such as UBS and Wells Fargo, SigFig has grown to $485 million in assets under management, as of December 31, 2018.  

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Posted on December 16, 2019

Wealthfront is Ranked #1 for Digital Financial Planning


Overview: 

Wealthfront was founded in 2008 as kaChing, a mutual fund analysis company, before pivoting into wealth management.  Wealthfront officially launched in December 2011 and has since raised a total of $205M in venture capital to expand operations.  Between its investment management and cash account offerings, Wealthfront is now one of the largest independent robo advisors, with over $13.5 billion in assets under management and an additional $7+ billion in deposits into its high-yield cash account. 

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Posted on December 4, 2019

Betterment is Ranked #1 for First-Time Investors

Betterment is Ranked #3 for Digital Financial Planning


Overview: 

First launched in 2010, Betterment is one of the original robo advisors.  They have raised a total of $250 million in venture funding and have grown to be one of the leading digital advice providers. In their most recent annual disclosure, Betterment reports over $16B in assets under management (AUM) on their platform and services nearly 420,000 clients.  With no investment minimum and a 0.25% management fee, Betterment’s digital-only product is a strong choice for investors. They also offer various financial-planning packages that provide personal consultations with a financial planner on an as-needed basis, so that users only have to pay for personalized professional help as they see fit.  They offer a tiered service model, which allows investors to upgrade as their needs grow. Recently, Betterment has introduced a high-yield savings account to their platform and has announced plans to offer checking accounts in the near future.

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Posted on September 27, 2019

The term “Robo-Advisor” has become commonplace to describe a new breed of digital investment management solutions. Although there is not an official definition for the term, robo-advisors share a few key characteristics. Mainly, they are automated platforms that provide investment and financial planning services. Created in response to the lack of access to traditional advisors amongst less affluent investors, robo-advisors lower the cost and ease of investing in a professionally managed, globally diversified portfolio. They do this by leveraging algorithm-driven technology in the client management and investment selection process. 

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Posted on September 21, 2019

When digital investing was first introduced, platforms quickly began accumulating assets. Digital advisors were labeled industry disruptors, as talks of fee compression, the commoditization of professional asset management, and disruption of the investment advice industry ran rampant.  Digital advice providers had the advantage of emerging during a historic multi-year bull market. Over the last four years, the market has continued to mature, adoption has spread across major financial institutions, and new consumer trends have emerged. An increasing number of companies are battling for market share and institutions have developed their own offerings.  In the race to achieve scale, the largest independent advisors continue to expand product offerings to stay a step ahead of incumbent players and maintain impressive rates of asset accumulation.  

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