The Rise of Robo-Advisers: How Disruptive Are They?

The video discusses Betterment's position in the financial services market, highlighting its growth and validation through competition with major firms like Schwab and Vanguard. It addresses how Betterment handles market downturns, such as the Brexit event, by pausing trading to protect customers. The video also explains Betterment's unique trading practices, emphasizing long-term investment strategies and customer protection against market volatility.

How has the entry of companies like Schwab and Vanguard into the robo-advisory space affected Betterment?

• It has slowed down Betterment's growth.

• It has validated Betterment's business model and increased its growth.

• It has led to a decrease in Betterment's customer base.

• It has forced Betterment to change its investment strategy.

What was Betterment's strategy during the financial turmoil post-Brexit?

• They followed the same trading schedule as usual.

• They paused trading for a longer period to protect customers.

• They advised customers to sell their investments.

• They increased trading hours to capitalize on market volatility.

Why does Betterment pause trading during certain market hours?

• To align with traditional market practices.

• To avoid trading during volatile market times.

• To allow customers to time the market.

• To increase trading profits.

What is Betterment's primary investment strategy for its customers?

• Encouraging frequent trading to maximize profits.

• Timing the market to avoid losses.

• Focusing on long-term investment goals.

• Investing in high-risk assets for quick gains.

How does Betterment protect its customers from market crashes?

• By offering insurance against losses.

• By investing in only low-risk assets.

• By advising them to sell all their investments.

• By pausing trading during volatile times.