Date
21 August 2017
Robo-investing services are gaining popularity in the United States and Europe because of their lower investment threshold and attractive management fee. Photo: 8securities.com
Robo-investing services are gaining popularity in the United States and Europe because of their lower investment threshold and attractive management fee. Photo: 8securities.com

Robo-investing service to bring ETFs to mass market

A Hong Kong financial adviser is joining forces with an online securities trader to offer robo-investing services targeting exchange traded funds (ETFs).

Morningstar and 8 Securities are aiming to bring ETFs closer to the mass market by offering the service, the first of its kind in Asia, the Hong Kong Economic Journal reported Monday.

Robo-investing allows clients to choose from computer-generated investment options.

The choices are based on the risk profile of individual clients after they complete a questionnaire to gauge their preferences.

Clients are offered investment options from a basket of 16 ETFs, bonds and commodities contracts.

With a minimum investment of US$10,000 and lower management fees, robo ETFs are gaining popularity in Europe and the United States, 8 Securities executive chairman Mathias Helleu said.

Assets under management by 11 robo-investing firms in the West have grown 65 percent to US$19 billion in the past eight months.

The average management fee is 1 percent compared with 2-3 percent for traditional funds.

Translation by Vey Wong

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