The proliferation of robo-advisors continued this past week with two new offerings: a direct-to-consumer service from JPMorgan Chase and a B-to-B platform for financial advisors and their clients from Voya Financial Advisors.
JPMorgan’s You Invest Portfolios is available on the Chase.com site and on Chase’s mobile app for a minimum $2,500 investment (and continuing $2,000 maintenance balance) and a 35-basis-point fee.
Investors answer a set of questions about risk tolerance, financial goals and investment time horizon and Chase provides a portfolio composed of J.P. Morgan ETFs that comports with their answers. Fees on the ETFs will be rebated or offset against the advisory account fee.
“You Invest Portfolios … make it easy for our millions of digitally engaged customers to get and stay invested in a balanced mix of ETFs in minutes,” said Jed Laskowitz, its CEO, in a statement.
The bank’s robo-advisor is a companion service to its You Invest Trade digital brokerage account introduced last summer, offering 100 commission-free online stock and ETF trades for one year (there was no limit for free trades for customers of Chase Private Client, Chase Private bank, J.P. Morgan Securities and Chase Sapphire Banking.)
Voya Financial Advisors’ new digital advice is geared for the “emerging investor” clients of advisors who don’t have enough assets to qualify for the typical services of fee-based advisors.
The Voya Digital Adviser, which lives on an advisor’s website, is co-branded by Voya and the advisory firm and requires a $5,000 minimum investment. Investment options are exclusively iShares and Vanguard ETFs.
As with the JPMorgan platform, investors answer a set of questions to identify their investment goals and risk tolerance, then receive a managed portfolio of ETFs. The service offers nine different investment models — five strategic and four tactical, each including eight to 12 ETFs, said Andre Robinson, head of advisory solutions for Voya Financial Advisors.
“We are listening carefully to what our advisors need to grow successfully, he said in a statement. “With our new Voya Digital Adviser, individual scan access advice when, where and how the want it, while advisors meet the demands of both new and existing clients.”
The service will allow advisors to “gain capacity and scale up rather quickly,” Robinson tells ThinkAdvisor. “Advisors and more meetings and tasks they have time in the day.”
Voya believes the new service hybrid digital advice tool can help advisors grow their businesses by up to 10%.
Voya Financial Advisors has approximately 1,700 financial advisory clients $13.452 billion in assets under management — about one-quarter in discretionary assets and the rest in non-discretionary assets — according to its listed Form ADV filed July 1.
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