rise of the robo advisors: the growing trend of automating asset allocation strategies
TRANSCRIPT
The Emergence of the Robo-Advisor
The Growing Trend of Automating Asset Allocation Strategies
It all started with a game
❖ kaChing is was a popular virtual investing game on Facebook
and a Stanford professor
❖ Andy Rachleff, founder of Benchmark Capital, takes up management of kaChing
Funny storycirca 2009
@#$%^!!!
Fast forward to 2014
And now…
Wealthfront is the largest robo-advisor in the world and manages over $1.5 billion
So, what is a robo-advisor?
–Wikipedia
“Robo-advisors are a class of financial advisor that provides portfolio management online with
minimal human intervention.”
Robo-advisors going after plain-vanilla, asset allocation
❖ Robb-Advisors going after the low-end of brokerage/RIA business with automated asset allocation
❖ $? < 25 bps
Who are the players?
Asset Managers
Portfolio Apps
Algorithmic Portfolio Management
❖ Platforms like Collective2 and Covestor allow investors to synch their brokerage accounts to an automated trading strategy
What’s driving robo growth?
The incumbents are comingSchwab, Vanguard, et al following with their own offerings
Any questions?