Sallie Krawcheck's women-focused robo, Ellevest, officially launches

Sallie Krawcheck's women-focused robo, Ellevest, officially launches
Former Merrill and Citi chief executive says the digital adviser answers womens' investing needs.
MAY 04, 2016
Sallie Krawcheck launched her women-focused robo-adviser Ellevest on Wednesday, when the platform officially began accepting clients. The online automated investment service, which raised $10 million in fundraising led by Morningstar in September, takes into account a woman's salary curve, the fact that she may live longer than a man, the way she views risk and her goals — which could be anything from buying a home to starting a business. The former Merrill Lynch and Citi chief executive said the new automated platform offers more targeted services for women than what the industry currently has. "A lot of firms will say we have a women's initiative, but in my experience, a lot of them solve the problem of how do we market to women, not how do we better serve them," Ms. Krawcheck said. The robo, which charges 50 basis points, asks its clients for general information, including age, location and salary, and has four patents pending, including algorithms that show trade-offs and prioritization of goals and reaching out to clients when their chances of hitting the mark have fallen. It also models portfolios to project a 70% or greater chance that their goals will be met — unlike some other platforms that show a lower threshold, she said. "We built in conservatism because she tells us not that she's more risk averse but that she's risk aware," Ms. Krawcheck said. The service markets itself with the tag line "no jargon, no 'playing' stocks for sport, no patronizing — you got this," and targets the growing market for female clients. Men and women differ when it comes to investing, an InvestmentNews survey found. When it comes to top financial concerns, 80% of women said it was running out of money whereas 76% of men it was investment returns. The survey found more women were focused on long-term planning than short-term rates of returns, more conservative about investment decisions, more risk averse and took more time to make investment decisions. On the contrary, they were not more aware of how much they need to retire comfortably or expressing concern during periods of market volatility, compared to male clients. Ellevest is not the first digital adviser focused on women — in fact, there are three others that launched last year. SheCapital, which highlights content written by women for women, Women Investing Now, a financial planning service for women who want to manage their money, and WorthFM, which has accounts for saving, investing and retirement. As for if this is another robo versus human-adviser ripple in the industry, Ms. Krawcheck said it "is not against anybody, it is with everybody." "There are a lot of financial advisers that do a fantastic job for women. I know many of them, but the facts are the facts," she said. "There are so many businesses that implicitly or explicitly target men. There can be lots of businesses that serve women."

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.