Robo-Advisors Now Investment Tool of Choice for Every Fifth American

Julija A. Image
ByJulija A.
October 01, 2021

A June 2021 survey sponsored by Marcus by Goldman Sachs uncovered that one-fifth, or approximately 18% of all American investors, rely on robo-advisors and other automated platforms to manage their finances. The survey included more than 2,000 Americans, of which whom 644 said that they currently invest in either retirement or non-retirement investment accounts.

Millennials are leading the leading age group when it comes to robo-advisor usage. 21% of millennials (ages 25 to 40) use one of these tools for planning and making investments. On the other end of the spectrum, baby boomers are slower to adapt to new technologies, so only 7% of those aged 57 and older use an automated investment tool.  

The global pandemic heavily influenced the shift toward investment automation. The outbreak of COVID-19 also changed the overall investment behavior in the States. 31% of participants said that they are investing more money now than they have been before the pandemic. One-third of the survey participants are now dedicating more time to managing their investments and portfolios. About 30% are investing more time into learning about investing than before the pandemic struck. 

The generation gap is also noticeable in how investors inform themselves about new investment opportunities. Younger investors rely more on social media, investors’ podcasts, and other technology-based solutions for their insights about investing. Overall, 59% of all investors are getting their advice from online research. 

On the other hand, 40% asked a financial advisor for advice about their investments - a common source among many older investors. 36% turned to friends and family,  21% to social media, and 15% of investors consulted podcasts.

The participants were also asked about their investment strategy and priorities when selecting what to invest in. 49% said that the most crucial thing was portfolio diversification. Another priority, for 46% of respondents, was being able to pick their own stocks. 29% focuses on investing with an advisor, and 18% mentioned investing in ESG strategies.

According to the survey, 72% of participants invest in stocks, 28% in ETFs, and 39% in mutual funds.   

About author

Albert Einstein is said to have identified compound interest as mankind’s greatest invention. That story’s probably apocryphal, but it conveys a deep truth about the power of fiscal policy to change the world along with our daily lives. Civilization became possible only when Sumerians of the Bronze Age invented money. Today, economic issues influence every aspect of daily life. My job at Fortunly is an opportunity to analyze government policies and banking practices, sharing the results of my research in articles that can help you make better, smarter decisions for yourself and your family.

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