Robo-advisors have made investing more accessible than ever thanks to their low-fee cost structure and simple user experience. The United States currently has the most funds under management by robo-advisors and this figure is set to skyrocket over the next five years.
- The United States has the most assets under robo-advisor management of any country in the world ($1,164 billion in 2022).
- Robo-advisor assets under management are expected to almost double in the US by 2027.
- The average assets under management (AUM) is $92.2 thousand per user.
- Georgia has the highest search interest in robo-advisors followed by Virginia and Texas.
Robo-advisor market in the United States
- In 2021, 3.5 million adult investors in the US were estimated to use a robo-advisor to handle their portfolio. This is set to grow to 5 million adults by 2025.
- Robo-advisor assets under management are expected to almost double by 2027 in the US. In 2022, $1,164 billion was managed by robo-advisors. This is forecast to increase to $2,193 billion within five years.
- The average assets under management per user in the robo-advisors segment is expected to amount to $92.2 thousand in 2022. This is expected to increase to $126 thousand by 2027.
- Robo-advisor management fees typically cost 0.25–0.5% of your assets annually compared to 1–2% charged by human advisers.
- Funds expense ratios that robo-advisors invest in can vary but typically range from 0.05–0.25%.
- Google search interest in robo-advisors hit a five-year high in July 2022. Search interest in the last 12 months has been highest in Georgia, Virginia, Texas, California and New York.
Global robo-advisor market
- The United States currently has the most funds under management (FUM) by robo-advisors ($1,164bn), followed by China ($113bn), Japan ($58bn), the UK ($29bn), Italy ($24bn), Germany ($22bn), France ($21bn), South Korea ($17bn), Canada ($16bn) and India ($15bn).
- While the top 10 countries by FUM will be the same in 2027, India will have risen up the list to place fifth with $46 billion under management.
- The countries that will have the biggest percentage increase in robo-advisor FUM over the next five years are Ukraine (957%), Sudan (720%), Benin (578%), Niger (500%), Turkmenistan (500%), Pakistan (499%), Cameroon (495%), Burkina Faso (442%), Togo (440%) and New Zealand (409%).
- The countries that will have the biggest dollar value increase in robo-advisor FUM over the next five years are the United States (+$1,029bn), China (+$63bn), the UK (+$38bn), India (+$30bn), Japan (+$29bn), Argentina (+$22bn), Ukraine (+$20bn), Sudan (+$20bn), Canada (+$17bn) and Australia (+$17bn).
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.