Robo Report

Backend Benchmarking

Research

25 Pages

BackEnd Benchmarking examines the rapid rise of robo advisors and how digital platforms were reshaping wealth management in 2017. The paper highlights widening performance differences across providers, accelerating industry consolidation, and growing investor hesitation toward automation despite Vanguard reaching roughly $83 billion in robo assets.

Key Takeaways

Robo Asset Concentration: Vanguard’s robo platform reached approximately $83 billion in AUM during 2017, compared with Schwab’s $14.9 billion and Betterment’s $10 billion, reinforcing winner take most industry dynamics.
Performance Gaps Widened: Taxable robo portfolios generated Q2 2017 returns ranging from 2.13% to 3.22%, showing materially different outcomes despite targeting similar 60/40 allocations.
Hybrid Advice Emerged: Providers increasingly blended automation with human planners, while firms including Morgan Stanley and Wells Fargo prepared robo launches during 2017 to compete for digital advisory flows.
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