Scoop: HSBC hops on the robo-advising bandwagon
HSBC USA is launching Wealth Track, its first robo-advising platform with a $10,000 minimum investment in partnership with Marstone, a digital wealth management startup, Axios has learned.The big picture: Passive investing has become more popular and traditional financial institutions are looking to compete with the digital offerings from the likes of Betterment and Wealthfront.The details: The pilot program will launch in November for HSBC employees only, with the full rollout for existing clients expected in early 2019. Users will answer 7 questions to create a risk profile, and the platform will suggest an ETF to invest in based on their risk appetite. The minimum investment is $5,000 for individual retirement accounts (IRA), and twice that for non-IRA investments.HSBC will charge a 0.50% fee for the services. To put it in perspective, thats higher than Betterments 0.25% fee.No word on the financial terms of the partnership.