How would you define the success of E*TRADE's Core Portfolios robo-advisor service?

Introduction

Defining the success of E*TRADE's Core Portfolios robo-advisor service requires a comprehensive approach that considers multiple stakeholders and metrics. To effectively address this product success metrics challenge, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

E*TRADE's Core Portfolios is a robo-advisor service that provides automated, algorithm-driven portfolio management with minimal human supervision. It's designed to offer a low-cost, accessible investment solution for retail investors who want professional management without the high fees associated with traditional financial advisors.

Key stakeholders include:

1. Retail investors (primary users)
2. E*TRADE (platform provider)
3. Regulatory bodies (e.g., SEC, FINRA)
4. E*TRADE shareholders

User flow:

1. Account creation: Users sign up, providing personal and financial information.
2. Risk assessment: Users complete a questionnaire to determine their risk tolerance and investment goals.
3. Portfolio allocation: The algorithm generates a diversified portfolio based on the user's profile.
4. Ongoing management: The system continuously monitors and rebalances the portfolio as needed.

Core Portfolios fits into E*TRADE's broader strategy of expanding its product offerings to attract and retain a wider range of investors, particularly those who prefer a hands-off approach to investing. This service competes with other robo-advisors like Betterment and Wealthfront, as well as traditional financial advisors.

In terms of product lifecycle, Core Portfolios is likely in the growth stage. It's established enough to have a user base but still has significant potential for expansion and refinement.