JP Morgan unveils digital investment service to engage new investors

Date: 2019-07-12   Author: Pankaj Singh  Category: #news

JP Morgan unveils digital investment service to engage new investors

New York-headquartered multinational investment bank and financial services company J.P. Morgan Chase is reportedly in talks to roll out a new and low-cost robo-advisor to lure banking customers to invest in their firm.

Apparently, after almost a year of fine-tuning and user trials at 27 Brooklyn-based branches, the firm will be unveiling its digital investing service named You Invest Portfolios for an annual fee of 0.35% of assets and will place users into an investment portfolio comprised of the bank’s exchange trade funds (ETFs). 

Jed Laskowitz, J.P. Morgan executive who runs You Invest, mentioned that the calculated fee agrees with what rivals from Wealthfront to Morgan Stanley charge for similar services, but unlike most competitors, the bank will be waiving the fee for underlying investments.

The ETFs to be used by J.P. Morgan will range from 2 to 50 basis points in terms of cost and clients will predictably save an average of approximately 15 basis points in fees.

Laskowitz noted that providing the service 35 basis points will offer great value to users given the integration with the J.P. Morgan experience and the firm’s rebates for the underlying ETF expenditures.

Evidently, this J.P. Morgan move highlights its push to snatch market share from rivals and broaden the pool of American stock market investors. According to a 2017 Gallup report, only about half the US population owns stocks through retirement accounts, mutual funds or individual equities, and only 31% of population below the age of 30 owns shares.

Seemingly, by relying on digital solutions, America’s largest banking service could profitably handle portfolios for people with as little as $2500, which is the lowest limit for its new product. Supposedly, banks with full service financial advisors target investors with larger amounts of money.

For the record, J.P. Morgan Chase is the largest bank in the United States and has been ranked as the sixth largest banking service in the world by total assets.

 

Source credit: https://www.cnbc.com/2019/07/10/jpmorgan-creates-robo-adviser-you-invest-portfolios-with-free-etfs.html



About Author


Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Global IT Services Market 2021 Industry Research, Review, Growth, Segmentation, Key Players Analysis and Forecast to 2027

Author: Sachin Pashte

Market Study Report LLC delivers significant information and realistic data of the Global IT Services Market via this newly added research in its database. The report presents a deep study of the market growth factors and drivers, In-depth researc...


Pineapple Coconut Water Market Trend, Technology Innovations and Growth Prediction -2025

Author: Ashwin Naphade

According to business intelligence report on Pineapple Coconut Water market, Covid-19 pandemic will have lasting impact on industry sphere, based on which growth matrix for -2025 is formulated.

.

Request a sample Report...


Cannabis Infused Drinks Market Increasing Demand, Growth Analysis, and Strategic Outlook -2025

Author: Ashwin Naphade

Cannabis Infused Drinks market study conducts comparative analysis of historical data and present trends, while considering the impact of Covid-19 pandemic to predict industry valuation by 2025.

.

Request a sample Report of Ca...