Fund Pricing Trends and ETF Selection by Roboadvisors

The first graph details how fund prices for equity and bond funds have fluctuated between the years of 2008 and 2015. It can be noted that the fund prices have been falling incrementally each year, but the notion that this is solely due to Roboadvisors is untrue as it can be seen that this trend was occurring before they had hit the market.

From the second graph it can be seen that the most popular ETF providers have the lowest transaction funds, with typically no transaction cost for custodian platforms. These are the ETFs most frequently adopted by Roboadvisors, which can largely be put down to the fact that management fees are a key contributing factor to the total cost of ETF ownership. Index ETFs will become increasingly popular as digitalisation encourages greater distribution and as ease of implementation becomes more of a necessity.