Santander to launch an ETF robo-adviser with SigFig

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Santander is preparing to launch a recent regulatory filing document, digital advisor and technology provider SigFig, and a pure robo-advisor.

Clients using Robo’s Santander PathFinder will be included in the model portfolio created by SigFig, which consists of the bank ETF released in November. The filing did not specify which ETF was selected for the portfolio. However, the available ETF models range from conservative to aggressive.

The algorithm recommends the portfolio to the client based on the information provided by the client in the risk tolerance questionnaire, the filing notes.

The program offers a cash sweep option in which client cash is automatically invested in the $ 235 billion Fidelity Government Money Market Fund. Santander does not receive compensation from the investment, filing notes.

This article was previously published Ignite, Titles owned by FTGroup.

A spokesman for Santander declined to comment. The filing did not mention when Robo would start.

According to the filing, the PathFinder service is targeted at clients with an investment of at least $ 2,000. However, the company can waive the minimum amount at any time.

According to the filing, Robo will charge an annual asset-based fee that is calculated and charged monthly for a 50 basis point delinquency. Santander will pay SigFig a private portion of the fee. Investors are also responsible for paying additional fees related to the ETFs they hold in their accounts.

Robo does not provide access to human advisors, filing notes. However, a customer service team of licensed advisors can answer your questions.

In addition to creating the portfolio, SigFig also implements and manages Robo’s model portfolio, Filing Notes. It also monitors and rebalances the portfolio as needed to monitor the behavior of Robo’s algorithms. Also, if the client chooses to use the program’s tax reduction harvesting feature, SigFig uses an algorithm to analyze potential tax reduction harvesting opportunities.

SigFig works with other banks and financial institutions on Robo products. The largest partnership with Wells Fargo began in 2016, said David Goldstone, manager of research and analysis of back-end benchmarks. SigFig continues to manage and implement Wells Fargo’s digital intuitive investor program. The program also offers a model consisting of ETFs, a show submitted to regulatory agencies in August.

In addition, SigFig has worked with UBS to develop the Robo Advice Advantage. The Swiss bank acquired a private stake in the company in 2016 as part of a strategic alliance.

SigFig also has a standalone robot accessible to individuals for at least $ 2,000. Robo charges an annual fee of 25bp and clients can manage their first $ 10,000 for free.

Santander Securities, an entity planning to launch PathFinder, is a subsidiary of Santander Holdings USA. The parent company is the holding company of Banco Santander.

TD Bank has also recently delved into Robospace. Launch two robots During October.

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Santander to launch an ETF robo-adviser with SigFig Source link Santander to launch an ETF robo-adviser with SigFig

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