There are now over 200 robo-advisors available in the world, and more of them are launching every year. All of them provide different combination of investment management, and overall financial strategies.
Most of Robo-advisors are online wealth management firms that take your money and help you put it into low-cost Exchange-Traded Funds (ETFs). When you first sign-up with them, you are generally required to answer a series of questions that are designed to generate your financial profile and categorize you based on your risk tolerance. A portfolio that matches your needs is then created and your funds are invested.
Nearly 60% of US consumers expect to use a robo-advisor by 2025, according to research from Charles Schwab. Additionally, 60% of current robo-advisor users are millennials, who are expected to have $20 trillion of assets globally by 2030, per CB Insights. As that wealth grows, more money will likely flow into digital wealth managers, especially as they often offer such services at a cheaper price than incumbent wealth managers.
Unlike others, You have full authority on your investment with EngineeringRobo. We strongly believe that your money is yours. Only you have access to your funds — securely held at the exchange of your choice, we do not have any access to your money.
Founded in founded in 2011, Wealthfront is among the fastest growing and well-documented company. With $20 billion in client assets under management, the company is the largest and fastest developing automated investment service on the planet. The firm manages more than 280,000 accounts.
Betterment is the largest and fastest-growing automated investing service that helps people to better protect, manage, and grow their wealth. A 12-year old “robo-adviser” wealth manager, Currently, Betterment has $18 billion in assets under management and over 400,000 clients.
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Here’s some additional context for these comparisons. Both Amazon and Apple are worth much more than the entire GDP of Turkey ( $851B ). And here’s the most interesting thing — even as Amazon has amassed such an enormous value ( $1.3 T ), Jeff Bezos has personally received the equivalent of 10% (or $125B ). Add Apple and Amazon together, and you’d have a conglomerate worth more than the entire value of USD in circulation ( $1.5T ).
The numbers are updated in 2020.
Asset Under Management — AUM
According to a new market research report “ Algorithmic Trading Market by Trading Type ( FOREX, Stock Markets, ETF, Bonds, and Cryptocurrencies ) “ the global Algorithmic Trading Market size is expected to grow from USD 15.1 billion in 2019 to USD 28.8 billion by 2024.
The US was the first country to introduce the automated financial advisors, and represent the leading robo-advisory industry in the world. Some of the largest players on the market across the globe are Betterment, Wealthfront, Personal Capital, Nutmeg, FutureAdvisor, and The Vanguard Group.
The entire US robo-advisory industry is expected to hit a $2 trillion value this year, with hybrid robo-advisors as the largest and the fastest-growing segment.Hybrid robo-advisors offer an automated investment platform with access to expert human advice from financial advisors. This new trend grew out of customer’s demand for a more tailored solution for the complex investments.
With $700 billion less than the US market, China ranked as the second-largest robo-advisory industry in the world. The UK is forecast to hit $24 billion market value this year, while Germany ranked in fourth place with $13 bn worth assets in the robo-advisors segment. Canada is the fifth-largest robo-advisory market in the world expected to reach $8 bn value this year.
Example, you are a 30-year-old investor. You have $50,000 in mutual funds that charge 2 per cent a year (the average management expense ratio in America).
The fund manager makes a seven per cent return on the market and it costs two per cent to gain that return. This means investors will end up with five per cent. If you calculate gains with a seven per cent return and a five per cent return over 50 years — the investment lifetime — This individual can end up with about $1.8 million using EngineeringRobo or $1.07 million in a traditional mutual fund portfolio.
That $700,000-plus gain could be the difference between reaching your retirement goals and falling short of your expectations.
To see just how important fees can be, consider an investor with only $50,000.
EngineeringRobo members would pay a low fixed fee, A typical mutual fund charges 2.0%. What would you do with the extra money?
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