Oct 17, 2018

Scoop: HSBC hops on the robo-advising bandwagon

People walk past an HSBC bank branch in Washington, DC. Photo: ANDREW CABALLERO-REYNOLDS/AFP/Getty Images

HSBC USA is launching “Wealth Track,” its first robo-advising platform — with a $10,000 minimum investment — in partnership with Marstone, a digital wealth management startup, Axios has learned.

The big picture: Passive investing has become more popular and traditional financial institutions are looking to compete with the digital offerings from the likes of Betterment and Wealthfront.

The details: The pilot program will launch in November for HSBC employees only, with the full rollout for existing clients expected in early 2019.

  • Users will answer 7 questions to create a “risk profile,” and the platform will suggest an ETF to invest in based on their risk appetite.
  • The minimum investment is $5,000 for individual retirement accounts (IRA), and twice that for non-IRA investments.
  • HSBC will charge a 0.50% fee for the services. To put it in perspective, that’s higher than Betterment’s 0.25% fee.
  • No word on the financial terms of the partnership.

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More than 62,300 U.S. health care workers have tested positive for the novel coronavirus and at least 291 have died from the virus, the Centers for Disease Control and Prevention reported on Tuesday. COVID-19 had infected about 9,300 health professionals when the CDC gave its last update on April 17.

By the numbers: More than 98,900 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 384,900 Americans have recovered and more than 14.9 million tests have been conducted.

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World coronavirus updates

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There are no COVID-19 patients in hospital in New Zealand, which reported just 21 active cases after days of zero new infections. A top NZ health official said Tuesday he's "confident we have broken the chain of domestic transmission."

By the numbers: Almost 5.5 million people have tested positive for the novel coronavirus as of Tuesday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.9 million tests).