Low fees drive rise of ‘robo’ financial advisers
By Jeff Reeves
Take leading robo-adviser firm Betterment, which boasts $2.8 billion in assets under management and roughly 115,000 customers. Betterment charges 0.35% for accounts under $10,000 in assets, 0.25% for accounts between $10,000 and $100,000, and just 0.15% annually for accounts over $100,000. That’s significantly cheaper than the 0.64% charged by the typical mutual fund or ETF, according to a recent fee study by Morningstar.