Robo-Advisers Brace for a Downturn With Less Risky Options

Most robo-advisers have known only one kind of economy: perpetual growth. But with the prospect of a long-overdue downturn looming, some wealth management startups are taking steps to mitigate financial risks for their customers -- and themselves.

Betterment LLC, an early digital wealth management company, said it’s introducing a tool on Tuesday that recommends a safe amount for customers to keep in their checking accounts based on their spending habits. It works with another recent Betterment feature, called Smart Saver, to automatically shift extra money into bonds and other low-risk assets.