Robo-Advisors w/ Active Strategies to drive differentiation?


#1

Hi All,

Does anyone know of a US-based robo-advisor that uses active management strategies as a way to differentiate themselves within the space? Nearly all the robo’s I see are offering the same asset allocation and periodic rebalancing of low-cost ETF’s. Given the high number of new entrants into the space, I’m surprised there aren’t some that tout a different process. Is there a reason that they don’t already exist?

I recently launched an RIA w/ a robo solution that uses an algorithm to predict recessions in the US Economy. I’m wondering if I’m just early to the concept, or if everyone else knows something that I don’t.

Thanks in advance for your comments/input.


#2

Hi Phil, well first of all I believe it is part of the story. Over here in Europe it is different and I tend to believe that this might correlate with the margin robo’s can achieve. However digital portfolio management, as I like to call it, over here is still far away from the AuM we are seeing in the US. But the growth seems exponential. There are couple of offers heading into different directions, trying to differentiate through being “not only” ETF. There is investify (themes), solidvest (stocks) and others. On the other hand this is also a tech game and ETF are far more easy to handle than any other product. Best Mario