The rise of robo-advisors

Morningstar Executive Forum discusses the online investment-management landscape.

Craig Sebastiano 23 February, 2016 | 6:00PM
Facebook Twitter LinkedIn

Online investment advisors, known as robo-advisors, are becoming a popular choice for investors to have their money managed in a different way. Robo-advisors invest in a basket of exchange-traded funds (ETFs) and make investment decisions on your behalf based on your investment goals and risk profile.

The client base for Wealthsimple, an online investment-management service, is different than the traditional industry. Eighty percent of its clients are under 40 years old, said Michael Katchen, the company's founder and CEO, at the Morningstar Executive Forum held in Toronto on Feb. 17.

He noted that many of Wealthsimple's clients are investing for the first time. Katchen believes his customers haven't used a traditional advisor because they don't have enough assets. They also haven't made their own investment decisions using a discount brokerage because they don't have the right amount of knowledge. "This is filling in the gap between those two models and created a whole new market where one didn't really exist before," he said.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

About Author

Craig Sebastiano

Craig Sebastiano  Craig Sebastiano is a freelance writer based in Toronto. He writes about topics related to personal finance, investing, retirement and real estate. He has worked at BNN, Benefits Canada and StockHouse.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies