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Who’s the Best Advisor — R2D2 or C-3PO?

A new survey casts a whole new light on the concept of robo-advice. In a galaxy not so very far away, a group of self-directed investors was asked about their preferred relationship with their broker, and offered a choice modeled on two iconic Star Wars characters:


  • R2D2: a copilot with a diverse skillset who comes to your aid when you need him, offering a variety of helpful tools; or

  • C-3PO: a constant companion with a focused set of skills who will always offer you advice — whether you ask for it or not.


While most — roughly three-quarters of self-directed investors across the generational spectrum — preferred the R2D2-style copilot, Millennials (defined as those aged 25-34) were somewhat more likely (28%) to express a preference for the “constant companion” than either Boomers (22%) or Gen Xers (25%).

Although one might well wonder if those are, in fact, the droids they’re looking for?

The study, E*Trade Financial Q3 2015 StreetWise Report, also found that while a computer was still the primary device for managing portfolios (91% of Boomers, 79% of Millennials), more than half (54%) of Millennials used their smartphones (versus 19% of Boomers and 35% of Millennials), though tablet use was relatively consistent among generations (34% of Millennials, 30% of Gen X and 28% of Boomers used that device very/somewhat frequently).

And while mobile devices were used primarily for monitoring, Millennials were more likely to use interactive features like research, screeners or educational videos.

Annual return of their entire portfolio was a predominant focus of each generational segment, but Millennials were noticeably more likely to embrace this measure (47%) than Boomers (36%). The latter group was almost equally (34%) inclined to consider the performance of individual assets, while only 22% of Millennials and 24% of Gen Xers cited that as the criterion to which they paid the most attention.

This wave of the survey was conducted from July 1 to July 12 of 2015 among an online U.S. sample of 1,004 self-directed investors who manage at least $10,000 in an online brokerage account.

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