TD Bank launches US robo-adviser

TD Bank this week launched robo-adviser and hybrid wealth adviser offerings, joining a crowded market of banks and fintechs vying for market share among mass-market retail investors.

Why should we care?
TD’s robo pricing resembles many similar offerings on the market, and the bank is likely looking to grow a digital wealth management client base among its 10 million U.S. retail banking customers. But by rolling these products out years after most large U.S. banks launched their own robos, TD is late to the party. Clients will need to put down a minimum $5,000 investment, with an annual advisory fee of 0.3% for the digital-only investing offering (TD Automated Investing), and customers who prefer a hybrid adviser experience (TD Automated Investing Plus) need to invest a minimum of $25,000 with an annual advisory fee of 0.60%. TD will offer seven diversified portfolios of exchange-traded funds and/or mutual funds designed to serve differing risk profiles. To support the focus on retail investing, TD is hiring 350 financial advisers. The bank has increasingly been focused on growing its U.S. wealth management business. “With the introduction of TD Automated Investing and TD Automated Investing Plus, TD will now be able to engage earlier in the Customer's wealth journey on their terms, combining the best of digital with an unexpectedly human approach," Peter Mottek, executive vice president and head of U.S. wealth at TD said in a statement.