Image Credit: Christophe Vorlet
By Jason Zweig | May 18, 2018 10:30 am ET
That’s what has been happening at Wealthfront Inc., the automated online investment manager, or robo-adviser, that manages about $10.5 billion. In January, the firm launched Wealthfront Risk Parity, a mutual fund that invests across stocks, bonds and commodities around the world. For many clients with at least $100,000 invested at Wealthfront, the firm has been automatically moving as much as 20% of their assets into the fund — unless they stipulated that they don’t want it to.…
To read the rest of the column:
The Wall Street Journal, https://blogs.wsj.com/moneybeat/2018/05/18/when-your-investing-robot-has-a-mind-of-its-own/
For further reading:
Books:
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Devil’s Financial Dictionary
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Little Book of Safe Money
Articles:
Wes Gray, “Risk Parity for Dummies”
Enterprising Investor blog, “Risk Parity Made Easy”
Bridgewater Associates, “The All Weather Strategy”
AQR Capital Management, “Understanding Risk Parity”
Talk Is Cheap: Automation Takes Aim at Financial Advisers—and Their Fees