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A comment on UBS Acquires Wealthfront for $1.4B. Parent comment

Re:UBS Acquires Wealthfront for $1.4B by paxys on Wednesday January 26, 2022 @02:25PM (#30090437)
Thing is, all of these are simple enough that anyone with a tiny bit of financial knowledge or Googling can do it for themselves. Sure a lot of people don't bother, but when your investment size starts going up the 0.25%-1% commission is a LOT of money.

Study after study has shown that investing in a broad market fund plus occasional (once a quarter) rebalancing is going to beat managed investing on average. So where do these products fit in really?

[ Parent | on HN ]
Re:UBS Acquires Wealthfront for $1.4B by lazide on Wednesday January 26, 2022 @02:54PM (#30090785)
The folks using WealthFront don't have enough money invested that 1% is a lot of money, and they generally very much suffer from lack of time or knowledge on how to invest properly (or willingness/ability to sit down, learn, and DIY properly either).
[ Parent | on HN ]
Re:UBS Acquires Wealthfront for $1.4B by lzrs on Wednesday January 26, 2022 @02:30PM (#30090498)
Well, actually a lot of these strategies are really hard to implement on your own. For example, in direct indexing you are buying hundreds of stocks in an attempt to replicate an indexing. You are also constantly rebalancing and tax-loss harvesting.

You could definitely just buy an index fund, but it's not exactly comparable.

[ Parent | on HN ]