Updated: Apr 4, 2019
Just when you thought you'd never have enough money saved up to start investing... the game changed.
The rise of Micro investing platforms has triggered a change in the investing world.
With all great changes comes even greater questions. How will this change market behavior as more millennials start to invest? Who stands to lose the most in this shift towards ultra passive investing? Time will ultimately tell but with growing enthusiasm for platforms like Acorns it is apparent that many "young " Americans are finding that their first baby steps into investing doesn't have to be hard or intimidating, but rather easy with a capital "E".
This trend of Ultra passive investing has been gaining more and more favor and is hitting its stride at almost the perfect time. Recent Job polls site that more and more employment is done through contractor services and gig work, leading a massive change in the investment programs that used to support the "company man". The need to adjust with the times has shown us that now almost every major bank and investment company is exploring deals to incorporate the micro investing boom into their portfolios.
What made this possible?
The quick answer is "Robo-investing". The longer answer involves complex topics such as Quantitative programing, low fee structuring, Market Volatility, and last but certainly not least- Cost. In the end almost always comes down to that most competitive distinction, and for that reason you will likely see what already seems like low cost investing get ever more cheaper and ever more competitive as more players, large and small, enter the market to vie for your loose change.