Is a Robo Adviser Right for You?
By Nellie S. Huang
Can a machine dispense good investment advice? Plenty of people seem to think so. As the number of online investment advisers has swelled in recent years, so has the pot of money they manage. Financial-services giants Charles Schwab and Vanguard Group recently joined such upstart sites as Betterment, SigFig and Wealthfront in dispensing customized, computer-generated financial advice. Vanguard’s offering officially launched in May, but from the time testing began in early 2013 through early June, it had already pulled in $7 billion. Schwab’s online advisory business, which opened in March, attracted more than $2.6 billion in assets in just over three months. “It just goes to show there was this massive unmet need,” says Naureen Hassan, head of Schwab Intelligent Portfolios, the firm’s online advisory business.