Even though millennials are open to ETF investing, the vast majority of financial advisors who use them haven’t rolled out the welcome mat, preferring instead to focus on more profitable older investors with a higher level of investable assets. And while some are using robo-advisor platforms to attract and service a new demographic with shallower pockets, others view these automated systems as flawed competition.
Perhaps in an effort to soften the battle lines and keep the millennial momentum going, ETF powerhouse State Street weighed in on the topic in a recent report titled “Embracing Change as Opportunity.” In it, the firm noted that robo-advisor platforms “can add efficiency to your practice, increasing your profitability and possibly even more importantly, helping you economically serve clients who may have limited assets today but over time will have more dollars and more complex planning needs.”