2017 Will Bring Wider Adoption of Robo-Advisors Among High-Net Investors
The investment management industry faces more changes in 2017, including wider use of robo-advisors.
Millennial investors first gravitated to the use of robo-advisors to guide their investment choices, but now their older, wealthier parents will increasingly turn to robo-advisors too.
That's the prediction of Scott Schneider, president of Zacks Advantage, who expects experienced weatlh managers will begin using robo-advisors as a way to lower fees.
Schneider also says the upcoming Department of Labor Fidicuciary Rule will create a major shift in investment trends next year.
That rule, which takes affect in April 2017, requires that all investment fees are completely transparent, causing a shift toward the significantly lower fees offered by robo-advisors.
