The robo-advisory business is booming as more enter the space, but many have been interested in how robo advisory clients reacted to the last week of August. While many robos provide investment guides, Charles Schwab’s Intelligent Portfolios stand out with a personal touch to help investors out if they want to talk to a live person.
While the recent bout of volatility and market mayhem may have shook investors’ confidence, Schwab’s services helped some wary clients from doing something they may have later regretted.
Looking at how robo-advisor clients reacted to the recent turmoil, Schwab was open to sharing some insights into investor interaction and trading.
“Clients are largely staying the course, reinforcing the idea that automated investing services help people remove emotion from the investing process and keep them focused on their longer term goals,” Tobin McDaniel, President of Schwab Wealth Investment Advisory, told ETF Trends.
With a steady hand, Schwab has provided a calming touch in an volatile market where emotions ran high. Between August 21 through August 28, McDaniel pointed out that fewer than 1% of Schwab Intelligent Portfolios clients made changes to their risk profile, only a small percentage of clients called the phone team about the markets and even fewer had an online chat with Schwab about the markets.
“While a small percent of clients have contacted us, it’s noteworthy that it is still a significant increase from the average volumes we see, proving that there are times when clients want access to a live investment professional, even as part of a ‘robo’ service,” McDaniel added.