Topic: Investment advisors in the United States (2024)

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    • Registered investment advisors (RIAs) are advisors registered with the U.S. Securities and Exchange Commission (SEC) or registered by the securities agency in a state. The role of the RIAs is to provide tailored financial advice to their clients, and manage their clients' investment portfolios. Generally, the clients of RIAs can be individuals, institutions, or pooled investment vehicles. The number of RIAs has been increasing annually, with there being approximately 14,800 registered investment advisors employed in the United States in 2021. The value of their managed assets also grew over this time, but in recent years, competition has risen on the market: the robo-advisors. These “new competitors” are online platforms that base investments on algorithms with minimal human interaction. Although the value of assets under management (AUM) of robo-advisors in the United States is far below that of RIAs, the assets managed by robo-advisors are growing rapidly and is expected to roughly double within five years.

    Do investors prefer a human or robo-advisor?

    The use of artificial intelligence (AI) in the financial advisory industry is a relatively new concept. Numerous investors are opposed to consulting with a robo-advisor as many individuals still emphasize aspects such as establishing a relationship and the importance of shared values with their financial advisor. However, the role of AI and specifically robo-advisors in the financial advisor industry is expected to continue. As the level of AUM by robo-advisors increases, so too does the use and acceptance of robo-advisors among investors. Trust levels in robo-advisors are particularly prominent among younger generations of investors.

    What does the typical investment advisor look like?

    Most of the RIAs in the United States are smaller in size, managing assets between 100 million and one billion U.S. dollars. The majority of clients are individuals; more specifically non-high net worth individuals. Despite this, the largest share of the AUM for financial advisors comes from pooled investment vehicles, not individuals. Individual investors have more options today than in previous years when choosing a financial advisor. The average AUM of clients of robo-advisors in the United States reached more than 92,000 U.S. dollars per user in 2022. The introduction of AI has shifted the financial industry as the role of a financial advisor increasingly includes the use of technology or substitutes human consultation with robo-advisors.

    This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.

    Published by Statista Research Department, Dec 18, 2023

    Key insights

    Number of Registered Investment Advisors (RIAs) in the U.S.
    15,114

    Topic: Investment advisors in the United States (2)

    Detailed statistics

    Number of Registered Investment Advisors (RIAs) employed in the U.S. 2012-2022

    Assets under management (AUM) of Registered Investment Advisors (RIAs) in the U.S.
    114.1tr USD

    Topic: Investment advisors in the United States (3)

    Detailed statistics

    Total AUM of SEC-registered investment advisors 2000-2022

    Assets under management (AUM) of robo-advisors in the U.S.
    765.5bn USD

    Topic: Investment advisors in the United States (4)

    Detailed statistics

    AUM of robo-advisors in the U.S. 2018-2028

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    What Will You Be Charged if You Hire an Advisor?

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    Topic: Investment advisors in the United States (43)

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    Topic: Investment advisors in the United States (2024)
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