What is a robo advisor and why Endowus is different

Choice is meaningful. It acknowledges the uniqueness of each individual and respects their different needs in life.

However, the sheer number of digital wealth platforms in Hong Kong — from robo-advisors to neo-brokers and digital banks, can make investment choices overwhelming for many.

Although these platforms may seem similar at first glance, they do vary significantly, from diversity of investment offerings, costs, fees, team expertise, and underlying investment philosophies.

‍While you might see media and blogs sometimes categorising Endowus as a robo-advisor — owing to our simplified investment process and digitally-enabled advisory service — we are in fact, much more. Allow me to share why.

What are robo-advisors?

A robo-advisor is a digital platform that uses algorithms to provide automated investment advice and manage portfolios. These platforms analyse market trends and make recommendations based on a client’s risk tolerance and goals, typically offering options like index funds and ETFs.

Unlike traditional advisors, robo-advisors operate 24/7 and often have lower fees, making them ideal for investors who prefer a passive role or cannot afford ongoing personal monitoring.

Why is robo-investing attractive?

Robo-advisors have gained significant traction globally. Data shows that the global robo-advisory market is anticipated to reach US$2 trillion at the end of 2025. Here are three key reasons why robo-advisors can appeal to Hong Kong investors:

1. Cost-efficiency

Fees can eat into investment returns. Robo advisors typically offer services at a low cost due to their automated nature. This cost efficiency makes investing more accessible and allows investors to keep more of their returns.

2. Accessibility and convenience

Robo-advisors provide a user-friendly, 24/7 platform for investors to manage portfolios remotely, ideal for the city’s busy professionals lacking time for regular financial advisor meetings.

3. Automated, algorthimic investing

Robo-advisors leverage algorithms that extract numerous data to create diversified portfolios that spread risk across asset classes and geographies, an effective way to mitigate risks and capture global growth opportunities. 

Portfolios are often rebalanced automatically if they are out of alignment with target allocations, or the platform has a change in short-term tactical views of the market.

Endowus is MUCH MORE than a robo advisor for 3 reasons

While Endowus uses technology to deliver a seamless hybrid advisory service through our award-winning digital platform, we're not fond of the "robo-advisor" label.

That term can be misleading, suggesting our service is merely a robot passively monitoring markets and trying to beat them.

We are, in fact, much more than "just another robo-advisor." Here's why:

1. Goal-based, liabilities-driven advisory approach

Endowus is a goal-based investing platform, helping clients plan and invest towards specific personal life goals, such as preparing for retirement or kid's education.

Our primary aim is to provide clients with the best asset allocation and available investment solutions to achieve the defined objective.

This approach differs from investment frameworks espoused by many neo-brokers and robo-advisors, whereby investors are often encouraged to outperform a market average or benchmark, or consistently advised to chase the latest investment themes and trends.

Our advisory process starts with helping clients define their investment intention and objective by answering questions such as:

• What are you investing towards (such as preparing for retirement, passive income for monthly mortgage, building an emergency fund etc.)
• How long will you be investing for
• How much you can invest today
• The appropriate level of risk you can take

We do not believe investors should simply measure investment success against short-term returns or benchmarks.

The real "risk" is not about underperforming a benchmark at a given time, but the possibility of losing sight of intended long-term goals and consequently become unable to reach them — for example, being unable to afford the school they wish to send their children to, or retiring without the lifestyle they desire.

Goal-based investing is a scientific, liabilities-driven investment framework that is employed by large institutional investors, pensions & endowment funds, such as the Yale Endowment. It is from this very approach that Endowus derives its name — Endowment investing for all of us.

Read more: How to invest your first US$100,000 or US$1 million

2. Bespoke in-house investment advisory capabilities and access to institutional-grade products

Robo-advisors often leverage off-the-shelf instruments such as ETFs, and may use an active and tactical asset allocation strategy, making opportunistic bets on specific sectors or regions, with self proclaimed proprietary algorithms.

At Endowus, we take a different approach. We prioritise long-term investing over trying to continuously and tactically time the market.

Our Strategic Passive Asset Allocation (SPAA) framework works as follows:

• Strategic top-down: Allocation to asset classes, based on the portfolio's goal and investor's investment objective.
• Passive implementation: No tactical changes based on market conditions.
• Curation of portfolio design bottom-up: Selecting best-in-class strategies to represent the SPAA, funds managed by leading global fund managers.

Unlike some robo-advisors which may only employ instruments such as ETFs, or work with a single or just a handful of managers, Endowus works with over 100 leading global asset managers.

Endowus curates more than 300 best-in-class strategies, across money market, fixed income, equities, and even alternatives, including private markets (private equity, private credit, and infrastructure), and hedge funds — asset classes historically only reserved for institutional investors.

We are not a online fund supermarket, our offerings are carefully selected by our 13-person Endowus Investment Office, led by our Chairman & Group Chief Investment Officer, Samuel Rhee and Chief Investment Officer Hugh Chung.

The team is uniquely set up as an institutional-grade in-house consultancy. We design solutions and portfolios from the bottom up to meet the specific needs of our clients, which include individuals, corporates, family offices, as well as charities and endowments.

Besides single fund access, Endowus offers pre-optimised multi-manager model portfolios, as well bespoke portfolio customization for our Endowus Private Wealth clients.

Aside from ease of implementation, we also considers costs and tax efficiency. Learn why US-listed ETFs, commonly used by robo-advisors, may not be optimal for Hong Kong investors due to the often-overlooked 30% dividend withholding tax.

Read more: An inconvenient truth: Taxes on US-listed ETFs

3. Real advisors, real support

Endowus not only offers a unique investment philosophy but also provides personalised client services. 

Our SFC-licensed client advisors are available for in-person consultations for all our clients. This personal touch provides clients with peace of mind, ensuring that their investment needs and concerns are addressed directly by qualified and conflict-free professionals.

Client advisors help bridge the gap between digital convenience and personalised financial advice, making Endowus a hybrid solution that combines the best of both worlds.

This approach is vital because the true value of advisors lies not just in the functional aspects of providing investment products and services, but also in the psychological and emotional guidance and behavioural coaching they offer. Clients can discuss their financial goals, risk tolerance, and investment strategies in detail, gaining confidence in their investment decisions.

Endowus Private Wealth clients are assigned a dedicated advisor, who who partners with them to articulate important life goals and build a personalized, evidence-based, holistic investment plan using our proprietary financial planning tool, the Endowus Wealth Implementation Plan.

The conflict-free revolution: independent, aligned fee-only model

Endowus launched in Hong Kong not because the market needed another robo-advisor or neo-broker, but we saw a problem. In every demographic mix from private bank to retail bank clients, investors struggle to grow their money sustainably. The reasons?

• High costs
• Lack of access to products
• Lack of aligned advice

‍Unlike traditional distributors focused on product sales and commission, Endowus is the first truly independent, fee-only digital wealth platform in Hong Kong — we do not take commissions or trailer retrocessions typically paid to distributors by fund houses.

Endowus offers zero subscription fees and industry-first 100% Cashback on trailer commissions, not only significantly reducing investment costs compared to industry average.

What's critically important is that besides lowered cost, it also means Endowus is paid solely and only by our clients of a transparent all-in Endowus fee (ranging from 0.1%-0.6%), and thus our advice is unaffected by any conflicts of interest (aka "conflict-free").

We are glad that our work in driving the conflict-free revolution has been recognized by the World Economic Forum, which conferred us the honour of World Economic Forum Technology Pioneer. We were also awarded by Asia Asset Management as the Best Fintech Innovation in Asset Management in Hong Kong 2025.

Read more: Wealth management conflicts of interest are failing investors. Here’s what’s needed

Missional about financial education and empowerment

As part of our mission, driving financial education and empowerment has been a key pillar of Endowus' work.

Besides our robust financial content hub, we also conduct regular webinars, and in-person investment and personal finance seminars.

For corporates and communities, Endowus offers pro-bono financial wellness and education workshops. We have worked with over 200 corporates across Hong Kong and Singapore, conducting over 500 hours of training on topics, such as personal investing 101, life stage investing and more.

In the theme of community empowerment, we also help charities and not-for-profit organisations optimise their financial resources offering treasury and advisory solutions at a preferential rates.

Read more: Endowus corporate financial wellness program: your partner for employee financial wellness

Start your investment with Endowus

By persistently pursuing the highest standards from the fund managers with whom we partner, by demanding institutional share class fees and returning 100% cashback on all trailer fees to our clients, and by introducing the lowest cost option to access high-quality investment solutions, we are committed to improving your investment experience and outcomes. 

We want the industry to follow suit and move towards a conflict-free future of wealth management, one that is soley focused on helping everyone invest better today, so they can live better tomorrow.

Begin your investment voyage with Endowus today.  Onboarding only takes a few minutes with just HK$10,000.

Read more:

• Why invest through Endowus
• How your money and assets are kept safe and secured with Endowus
• Wealth management conflicts of interest are failing investors. Here’s what’s needed
• Fund investing in Hong Kong: What are trailer fees

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