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An automated service that builds and manages your investment portfolio using algorithms.
Why It Matters
Robo-advisors democratized professional portfolio management. For 0.25-0.50% annually, services like Betterment, Wealthfront, and Schwab Intelligent Portfolios will build a diversified portfolio, automatically rebalance, and even do tax-loss harvesting. They're perfect for beginners who want to invest properly without learning everything first. The trade-off: less control and customization than DIY.
Key Points
- Typical fee: 0.25-0.50% of assets per year (much cheaper than human advisors)
- Automatically rebalances and reinvests dividends
- Best for: beginners, hands-off investors, those who'd otherwise not invest at all
Related Terms
Common Questions
An automated service that builds and manages your investment portfolio using algorithms. Robo-advisors democratized professional portfolio management. For 0.
Robo-advisors democratized professional portfolio management. For 0.25-0.50% annually, services like Betterment, Wealthfront, and Schwab Intelligent Portfolios will build a diversified portfolio, automatically rebalance, and even do tax-loss harvesting. They're perfect for beginners who want to invest properly without learning everything first. The trade-off: less control and customization than DIY.
Typical fee: 0.25-0.50% of assets per year (much cheaper than human advisors)
Automatically rebalances and reinvests dividends
Best for: beginners, hands-off investors, those who'd otherwise not invest at all