Robo's pride themselves on providing a great product with super-low fees. Low fees are possible with ETFs and the elimination of high priced investment managers. However, in a faltering market traditional investment advisors ague that clients need to talk with someone who understands them and can provide reassurance that their portfolio is protected.
Betterment LLC, which manages $2.6 billion for investors, said Monday it hasn’t received an unusual volume of calls or emails from clients and isn’t sending a message to clients about the market activity. “The vast majority of our 105,000 customers are normal people going on with their lives. We are not going to be the ones who force our clients to pay attention to the stock market since we know that is not good behavior,” said Dan Egan, director of behavioral finance and investing at the firm. Clients who log on to their Betterment accounts will see a message that says in part that “markets fall from time to time, and it’s completely normal.” Among Betterment clients, there has been almost no change in behavior in recent days, though it seems that deposits are up a little, Mr. Egan said.