Tag: Vanguard
Posted on March 13, 2020
News of the novel coronavirus has dominated the 2020 news cycle. Both equity and bond markets have been extremely volatile, and the S&P 500 Index has dipped into bear market territory after dropping as much as 25% from its previous high. However, many other developments have taken place during the year. Morgan Stanley is set to acquire E*Trade in an all-stock deal valued at $13 billion. Citigroup unveiled its new robo advisor, and Goldman Sachs is expected to do the same soon.
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Posted on January 10, 2020
December caps off a strong 2019 for robo advisors. A November report by the Aite Group claims that assets managed by robos are up 10% over the first three quarters of 2019. This does not account for a roughly 10% increase in equity markets in the fourth quarter. At least two robos, United Income and Twine, passed the $1 billion in assets mark. The report paints a bright future for the industry, predicting a four-fold increase in robo assets by 2023.
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Posted on November 11, 2019
Cash Products Attract Assets
Wealthfront and Betterment have both hit $20 billion worth of assets on their platform. On its website, Wealthfront boasts that its “clients trust [it] with more than $21 billion” as of November 2019. However, regulatory filings suggest that most of this growth has been the result of cash moving into high-yield savings accounts.
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Posted on November 7, 2019
Schwab and Vanguard are the two dominant platforms in the digital advice industry. Leveraging their clout as established investment managers, Schwab and Vanguard have amassed $43 billion and $140 billion, respectively, in assets under management on their digital platforms. Below is a comprehensive comparison of the two services, including facts, features, and historical performance based on accounts we have open at both providers.
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Posted on October 31, 2019
JP Morgan Enters the Fray, Vanguard Expands
All hands are on deck for automated investing. Shortly after closing Finn, its millennial-focused banking app, JP Morgan launched You Invest Portfolios—its new digital advisor with a minimum account balance of $2,500 and 0.35% advisory fee. With JP Morgan’s entrance into the digital advice space, there are only a few large U.S. banks that have yet to offer or buy a stake in a digital advisor.
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Posted on October 9, 2019
Vanguard Expands its Robo Offering
Vanguard is piloting and is expected to soon release a new digital planning and automated-investing product called Vanguard Digital Advisor, according to a document filed with the SEC. Vanguard Digital Advisor will have a $3,000 minimum and an all-in fee—management and underlying fund fees—of 0.20%, placing it in direct competition with providers targeting less affluent investors. In doing so, Vanguard will undercut incumbents Fidelity and JP Morgan, who both have all-in costs of 0.35% and independents Wealthfront and Betterment, who have all-in costs of around 0.33% and 0.36%, respectively, depending on the portfolio chosen.
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