Capital One Investing Unveils New Robo-Advisor Offering with 7 ETF Models

US-based Capital One Investing, a subsidiary of Capital One Financial Corp., today announced the launch of Advisor Connect, a suite of managed portfolios including a robo-advisor service aimed to provide investors a new set of managed products under its existing self-directed and full-service brokerage and advisory product line.

The company explained in an official statement that the new digital portfolios are unbiased as no financial advisors are compensated and none of its own proprietary funds are traded within the newly launched portfolios.

The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

At Capital One Investing, our goal is to build planning tools that help customers invest with confidence and manage portfolios in ways that work best for them.

Robo-advisor rebalancing

Part of the appeal of robo-advisor offerings, besides the cost structure, is that any subsequent portfolio rebalancing that is required, based on initial target allocations, can be fully automated.

This helps a portfolio take advantage of changes in the market on a systematic basis without the over-trading that may typically happen within an active investment that can lead to higher costs and potentially worse performance - compared with passive-style products that merely try to follow the index and rebalance (including averaging down) when target allocations change.

In addition, Capital One Investing has a dedicated team of people to support investors with the new offering and to help keep the human touch in the equation to guide clients.

Advisor Connect marks a significant milestone on our journey to build a customer-first, conflict-free and transparent investing experience that empowers today's investors to plan for the long term.

7 Models based on ETFs

The cost structure of the new funds is based on an annual advisory fee of 0.9 percent, and investors need a $25,000 account balance to invest in the new managed service which permits one portfolio per account and uses low-cost 3^rd party ETFs which have become a popular choice for robo-advisory offerings to help keep fees minimal.

According to people familiar with the product at the company, there are 7 models within the new portfolios in the Advisor Connect offering, ranging from conservative to aggressive and based on low-cost Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Traded Funds (ETFs).

These offerings combine or chose from nine to twelve ETFs - from iShares or Vanguard or Powershares - and determines overall portfolio weightings based on client's investment objectives and risk appetite.

A certified financial planner within the Advisor Connect division explained to me that based on a 10% level of drift the portfolios are set to automatically rebalance, hence the automatic robo-advisor essence of the offering - although this offering still has a strong human element to it with the team's support.

Human touch still present

"At Capital One Investing, our goal is to build planning tools that help customers invest with confidence and manage portfolios in ways that work best for them. We're providing flexible solutions that fit seamlessly into everyday investors' busy lives," said Yvette Butler, president of Capital One Investing, commenting in a statement regarding the launch.

"Advisor Connect marks a significant milestone on our journey to build a customer-first, conflict-free and transparent investing experience that empowers today's investors to plan for the long term."

Mrs. Butler added: "Many investors want to be involved in day-to-day management of their own finances and digital tools can do a great job keeping them on track and their portfolios balanced. But when life throws you a curve or your goals change, working with an advisor can help you pivot and reassess your game plan. Advisor Connect provides the best of both worlds, access to great online tools along with support from personal financial advisors when you want or need it."