I’m personally very scared for the rise of robo wealth advisers.
It’s been empirically proven over the long term that with lower fees and a tracker fund you beat the majority of actively managed portfolios. However, we’ve been stuck in a decade worth of increasing indices. Warren Buffet attests to the power of cheap etf’s and tracker funds.
One area that I think is not talked about, is the behaviour economics aspect of this. WIth the increase in AUM in these robo advisers coming at a time that in my opinion is at the ‘top of the market’ you will see people redeeming en masse when the markets correct. Which is the worst thing to do.