Santander to launch an ETF robo-adviser with SigFig

Santander to launch an ETF robo-adviser with SigFig

Santander is preparing to launch a pure-play robo-adviser with SigFig, a digital adviser and technology provider, a recent regulatory filing shows.

Clients who use the robo, Santander PathFinder, will be slotted into model portfolios created by SigFig that are composed of ETFs, the bank disclosed in November. The filing did not specify which ETFs had been selected for the portfolios. However, the ETF models available will range from conservative to aggressive.

An algorithm will recommend portfolios to clients based on the information that they provide in a risk tolerance questionnaire, the filing notes.

The programme will offer a cash sweep option, through which the client’s cash is automatically invested in the $235bn Fidelity Government Money Market Fund. Santander receives no compensation from the investment, the filing notes.

A Santander spokesperson declined to comment. The filing did not state when the robo would launch.

The PathFinder service is being aimed at clients with at least $2,000 to invest, according to the filing. However, the minimum may be waived by the firm at any time.

The robo will charge an annual asset-based fee that is calculated and charged monthly in arrears of 50 basis points, the filing said. Santander will pay an undisclosed portion of the fee to SigFig. Investors