SoFi Robo-Adviser Gives Everyday Investors’ Access to Diversified Asset Classes
Expanding on its current automated investment offering, SoFi launched its new robo-adviser this week. Providing access to alternative asset classes alongside traditional and sustainability focused funds, SoFi’s offerings built in partnership with BlackRock Inc., the world’s largest asset manager, expose investors without significant financial resources, or a wealth manager, to new strategies and funds that would otherwise require a seven-figure investment minimum.
The new robo-offering comes on the heels of SoFi’s early 2024 launch of alternative investment funds. With more than 80% of people expressing interest in alternative investments, according to the company, SoFi said it is addressing a broader market need with a low-fee, personalized approach to investment strategies – all available on a platform “that’s both intuitive and educational.”
“Our new robo platform bolsters our commitment to empowering the everyday investor,” said Anthony Noto, chief executive officer of SoFi. “We launched one of the broadest offerings of alternative assets available from an online brokerage. Since then, we’ve been focused on how we can continue to scale our platform to meet the needs of more members, regardless of where they are on their financial journey. SoFi Robo Investing marks yet another milestone as we continue to deliver on our mission to build a one-stop financial platform that helps our members unlock their long-term goals in a meaningful way.”
SoFi’s Robo Investing product offers the benefits of always-on automation plus expert-curated portfolios for 0.25% annual adviser fee and allows members to adjust taxable and non-taxable portfolios to meet their unique needs. According to the company, members can select from three portfolio themes: “Classic,” which offers a balanced, low-cost mix of stock and bonds; “Classic with Alternatives,” which is one of the first to offer access to alternative asset classes (e.g., real estate and multi-strategy funds); and “Sustainable,” which offers a well-diversified mix of stocks and bond funds with favorable environmental, social, and governance practices.
“The combination of these elements – high-value, automated investment opportunities – developed and personalized by financial experts – all paired with our members’ 1:1 access to certified financial planners – is what makes the whole package incredibly valuable when it comes to helping our members make progress toward achieving their long-term goals,” said Brian Walsh, PhD, CFP, head of advice and planning at SoFi. “As always, we’ve packaged this offering into a fully digital experience – that’s clear, yet customizable – to empower our members to take control of their financial futures.”
As the accreditor investor definition continues to be explored and debated, new products like SoFi’s robo-adviser are coming to market. Although they don’t guarantee financial success, they do provide previously limited investors with more opportunity to access strategies and funds.
SoFi (Nasdaq: SOFI) describes itself as a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company provides lending and financial services to approximately 9.4 million members via an end-to-end vertically integrated financial capital stack.
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