Investing with the robo-advisor: etfs and funds, three portfolios to earn Ideas

Digital investment advice, what has changed

Is the robo-advisor market waking up? After years of substantial stagnation, marked by slower growth than expected, the market for digital platforms offering investment advisory services, based on model portfolios, seems ready to evolve towards a more mature form. «A global metamorphosis has been underway for some time now: we started from automated portfolios based on ETFs (investment funds with passive replication of an index, listed on the Stock Exchange, editor’s note) to arrive at differentiated services, based on the type of client, which today also embrace financial and retirement planning, sustainable investments and alternative instruments, up to cryptocurrencies», says Gianni Andrea Incarnato, EY Italy wealth & am leader. Over the next five years, according to Statista, the global robo-advisor business will grow by 14% a year, to exceed $4.6 trillion under management. Meanwhile, the percentage of clients who prefer to receive advice through digital channels has quadrupled in 2 years, from 12 to 46%, estimates EY. It is no coincidence that, even in Italy, there is a certain ferment. Alongside the operators who have led the way, such as Moneyfarm and Euclidean, some giants of traditional finance are also finding space for the first time, such as Credit Agricole Italia and Fideuram (see table). There are those, like Chebanca!, who prefer to take a side step, transforming their Yellow Advice — model portfolios accessible, until recently, in do-it-yourself mode — into a service guided by the financial advisor.

Jul 10, 2023

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