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Portfolio > Investment VIPs

Overstock.com Launches Robo-Advisor

By Bernice Napach

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While talk persists about Amazon, Google or Apple entering the investment business as asset managers or providers of financial advice, one household retailer has made the move.

Overstock.com this week announced the launch of a digital investment platform powered by tZERO Advisors, within its FinanceHub.

“This service introduces robo-advising investment management services to our millions of customers and continues Overstock’s commitment to bridging Wall Street and e-commerce,” said Patrick M. Byrne, Overstock’s founder and CEO, in a press release.

“They trust us with their home and, more recently, auto purchases,” continued Byrne. “We are excited about this new program that offers our customers the opportunity to bring artificial intelligence to their financial planning.”

(Related: Are Amazon, Apple and Google Coming for Asset Managers?)

Investors can choose from group of tZERO Advisors’ Adaptive Dynamic Portfolios (ADPs) based on their investment profile, or they can create a customized blend of the portfolios for a cost of $9.95 a month. If they sign up before the end of the month the first month is free.

(Related: Are Advisors Toast if Google, Apple or Amazon Join Robo-Advisor Race?)

The ADPs are powered by FusionIQ’s B2C investment platform, which, in turn, is driven by FusionIQ’s proprietary algorithms and scoring system that develop and rebalance the portfolios based upon dynamic market factors, according to a statement from Overstock.com.

(Related: These Are the Top-Performing Robo-Advisors Over the Past 2 Years)

The Overstock press release did not specify the investment choices available from the new robo but the tZero Advisors website shows three types of ADPs: conservative, moderate and aggressive, with six to 11 choices within each — 28 in total.

At the tZero Advisors site investors are asked a few basic questions: birth date, expected retirement age, annual income, total net worth, investment experience, preference for larger or smaller companies and tendency during market downturns — invest more or pullback? After an investor answers those few questions a recommendation is made suggesting one of the 28 portfolios with its top holdings, percentage share of sector allocations and some other data.

The robust platform is driven by FusionIQ’s proprietary algorithms and scoring system that develop and rebalance the Adaptive Dynamic Portfolios based upon dynamic market factors.

 

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