Bleep Boop Beep: The great robo-investing debate

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Australian Finance Podcast 41 min 2 speakers 6 chapters transcribed 3 months ago
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What is robo-advising and how does it work?

Owen Rask 0:00
Property investors often talk about using debt to build wealth. In the share market, that's called gearing. With the BetaShares WealthBuilder range, investors can access moderate gearing into shares, and with the newly launched GG-BL, That means exposure to a diversified portfolio of around 1,300 global companies excluding Australia, all with no loan applications, credit checks, or margin calls. Gearing magnifies both gains and losses, so it's only suitable for investors with a very high tolerance for risk. You can learn more about the WealthBuilder range of ETFs at the BetaShares website. And don't forget to read the PDS and TMD to decide if it's right for you. BetaShares Capital Limited is the issuer.
Owen Rask 0:45
Here's something worth knowing if you've been meaning to make the switch to a better broker. To celebrate their fifth birthday, Perla are offering three free trades a month for five months if you transfer your portfolio across with a minimum of $1,000. For anyone investing regularly, that's meaningful savings on brokerage that can stay invested instead. Perla is chess-sponsored, built specifically for long-term investors, and now has over $3 billion invested on the platform. If you've been with a platform that doesn't quite fit your strategy anymore, it might be time to take a look. You'll find all of the details at perla.com slash LP slash Rask. That's perla.com slash LP slash Rask. Thanks for tuning in to today's podcast.
Owen Rask 1:27
Please remember that all of the information in this podcast episode is limited to general information only. That means the information is not specific to you, your needs, goals, or objectives. So you should seek the advice of a licensed and trusted financial professional before acting on the information. And before you acquire or apply for a financial product, please read the PDS or product disclosure statement, which should be available on the issuer's website. Lastly, please keep in mind that past performance is not indicative of future performance.
Owen Rask 2:04
Bleep, bloop, bleep, Kate. Okay. We are talking robo-advice. The great debate amongst you and I, what is a robo-advisor? Is it worth getting one? Who are they? Are they taking over the world? Welcome to this episode of the Australian Finance Podcast.
Kate Campbell 2:21
Yeah, so we got a bit heated in our debate in the office last week about robo-advisors and Owen and I realized we had completely opposite opinions and for very different reasons our opinions were opposite. So we thought it'd be an interesting episode to have a chat about today, just a bit about both sides of the coin. and what they are, different ones available in Australia. We've broken down some fees so we'll give you a few examples of what the cost would be, some of the downsides and what are the other alternatives out there.
Owen Rask 2:54
And if you like this episode and you like us debating something like this, please let us know because we would love to do more of them because they are a bit of fun and we know that there are many different ways to invest and And no one of us is necessarily going to be right for the other person. We might change each other's minds. But getting to the bottom of this, I think, as with a lot of things in investing, I think we might conclude with you can do both.
Kate Campbell 3:23
Like the good old property and shares debate.
Owen Rask 3:25
Yeah, just do both. It's the Attila ad. Okay, so bleep, bleep, bleep, robo investing, robo advice. Is there actually a robot sitting behind the keyboard when I go to one of these things?
Kate Campbell 3:38
Yeah, totally. They're just sitting there crunching the numbers. No, really. Robo advice often used interchangeably of robo investing. Essentially, it's a platform where humans are deciding the... At the moment, it's just exchange trader funds making up these portfolios. They'll say, here's five different portfolios. We'll have a conservative, a balanced, a high growth, etc. And humans... usually an investment committee or hopefully someone with some experience will put together these portfolios, maybe five to seven ETFs that give you exposure to Australian companies, Australian property and infrastructure, a bit of overseas property infrastructure plus overseas companies.

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