FinTech News
SoFi Introducing Robo-Advisor with Alternative Investment Assets
SoFi is expanding its automated investment features with a robo-advisor platform.
About SoFi Robo Investing:
This week, SoFi announced a new investment offering for members. In an expansion of the company’s existing Automated Investing option, the “one-stop shop” for financial services is debuting Robo Investing. Notably, this new offering will include alternative asset classes (which SoFi first introduced to its Active Investing platform in May) in addition to traditional investments. Sustainability-focused funds will also be available.
These asset offerings come via a partnership with BlackRock. As SoFi notes, with the new platform, members will have access to investment strategies and funds that were previously only available to larger accounts.
At launch, SoFi’s Robo Investing will feature three portfolio “themes.” The “Classic” portfolio will feature a low-cost mix of stocks and bonds while the “Classic with Alternatives” will mix in real estate, multi-strategy funds, and more. Lastly, the “Sustainable” portfolio will include stocks and bonds with favorable environmental, social, and governance (ESG) practices.
SoFi Robo Investing does charge a 0.25% annual advisor fee. The platform will also offer taxable and retirement accounts. Members can open a Robo Investing account with as little as $50.
What they’re saying:
Announcing the updated option, SoFi CEO Anthony Noto said, “Our new robo platform bolsters our commitment to empowering the everyday investor… SoFi Robo Investing marks yet another milestone as we continue to deliver on our mission to build a one-stop financial platform that helps our members unlock their long term goals in a meaningful way.”
Additionally, the company’s Head of Advice & Planning Brian Walsh, PhD stated, “The combination of these elements – high-value, automated investment opportunities – developed and personalized by financial experts – all paired with our members’ 1-1 access to CFPs – is what makes the whole package incredibly valuable when it comes to helping our members make progress toward achieving their long term goals.” Walsh added. “As always, we’ve packaged this offering into a fully digital experience – that’s clear, yet customizable – to empower our members to take control of their financial futures.”
My thoughts:
It’s interesting that SoFi is finally embracing the roboadvisor terminology and even more interesting that they’re adding alternative investments to the mix. That said, from what I can call, the expanded platform is still fairly basic as far as roboadvisors go, with no mention of tax loss harvesting, rebalancing, or other features that are usually touted with these services. Of course, the 0.25% annual advisor fee is also lower than most. So, if you’re interested in a simple, diversified, hands-off investment option, it may be worth a look.
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