Talk of The Villages Florida - WSJ: Incredible Shrinking Management Fee

Internet innovation keeps on coming.

It will be great to see how these new service models work out. Of course many of them will be going up against the likes of Vanguard which already offers very low cost planning and advisory services.

Quote:

WSJ Blog:
Professional portfolio management has long cost too much. If a new company has its way, it could be free.

This past week, WiseBanyan, an online-only investment adviser, publicly launched a service that builds and manages diversified portfolios of exchange-traded funds for nothing. There is no minimum account size; nor is there any fee to sign up, to buy the funds or to hold them (other than the underlying expenses of the funds, averaging less than 0.14% annually).

�We�re attempting to replicate what good financial advisers do for large clients in an automated, low-fee fashion for small clients,� says co-founder Herbert Moore, a former institutional trader who has run an affiliated advisory firm since 2009. It�s much too early to say whether WiseBanyan will succeed; so far, it has signed up hundreds of clients, says Mr. Moore. The company ultimately hopes to make money by charging fees for additional services.

Incredible Shrinking Management Fee - MoneyBeat - WSJ