What happened:

On its way to $5 billion in assets, Schwab Intelligent Portfolios has become the largest self-directed robo in just a few months. Whizzing past the early startups Wealthfront and Betterment — who have yet to cross the $3 billion mark despite having more than a 5-year head-start — Schwab Intelligent Portfolios has taken the fast lead in this race.

Why it matters:

The self-directed robos are clearly making a play to be the primary way self-directed investors do their thing, but somewhere along the way, most of them have realized that it takes institutional heft to grow assets. Hence their pivot to offer institutional versions of their platforms. We’re skeptical that the Jekyll and Hyde approach — launching with an anti-advisor marketing blitz and then trying to get advisors to mirror their failed business model — will work. After all, Schwab and Betterment have been extremely quiet about the assets advisors are actually placing on these platforms, so all might not be as it appears.