Questions tagged [robo-advisor]

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How to calculate portfolio performance without tracking each individual transaction

How does one go about calculating the performance of a portfolio when the portfolio is robo-managed and rebalances often, therefore making tracking every transaction and exact holdings over time a ...
Hilikus's user avatar
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1 vote
1 answer

how do robo advisors make cross asset selections?

I want to understand how robo advisor make cross asset selection. We have a history of asset returns and it's standard deviation so we know sharpe ratios for most asset classes or even individual ...
Medan's user avatar
  • 509
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I realized I am too stupid to buy individual stocks, should I use "robo-advisor" consulting?

First the facts: I opened a Swissquote account in mid 2018 (a broker similar to Robinhood in the US). My balance today: loss of -1'500 CHF, with a total investment of 26'000 francs. Especially the ...
Sybil's user avatar
  • 688
0 votes
2 answers

Differences in return rates on cash accounts across banks

I noticed a massive difference (35x) in the return rate of savings accounts between Bank of America and a Cash account at Wealthfront. This confuses me, how can a Robo advisor offer such a high ...
Josh's user avatar
  • 213
1 vote
2 answers

How can I verify that an investment advisor is not a ponzi scheme if I do not trust the auditor?

In general, clients can trust that their investment advisor is not executing a ponzi scheme based on the reputations of the advisor's auditors. One of Wealthfront's auditors (EY) has recently lost a ...
m81's user avatar
  • 111
4 votes
1 answer

Why use a robot advisor over ETFs? [duplicate]

One central observation is that the vast majority of Robo-Advisors base their investment approach on ETFs. About 70% of the examined providers even operate on an “ETF-only” approach, to maximize cost-...
Manziel's user avatar
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How do automatically managed ETF portfolios (robo-advisors) handle small account balances?

It seems like new robo-advisors are appearing left and right. All the ones that I see tend to invest in a group of ETFs, which are automatically selected based on your risk tolerance. Also, unless a ...
Nosjack's user avatar
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2 votes
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Canadian nomad, USD earnings - how to invest/preserve currency

I'm a Canadian tax resident who moves around a lot. Exchanging currency stresses me out so much if I think about it that I basically have just decided to accept volatility. I work online, and am paid ...
MegH's user avatar
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3 votes
4 answers

Are Robo-advisors a Good Idea?

I like the idea of a Robovisor like the Schwab Intelligent Portfolio, Wealthfront, etc. But recently, my own experiences have been...a little worrisome. Despite the market being fairly bullish, and my ...
Fomite's user avatar
  • 1,039
-4 votes
5 answers

What are some 401K alternatives?

If your employer offers a 401K, but you do not like their investment options and fees, what are your alternatives? I know there are Traditional and Roth IRAs. But if your income is too high to ...
Nelson's user avatar
  • 137
3 votes
2 answers

Low income level investing - most promising option to start out? [duplicate]

I grew up really poor, my parents were terrible with money and I want to make sure now that I have a family of my own that I don't follow the same path and leave nothing but a life of hard work and ...
Andrew Duff's user avatar
1 vote
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How to profit from compound interest when investing in single stocks? [duplicate]

I started investing in the stock market last year. I've read tons of information and tried different products. My knowledge about compound interest is, when you invest in one stock, get 5% return, ...
ohboy21's user avatar
  • 153
31 votes
4 answers

What are the benefits and disadvantages of investing $60-70K in the following methods?

I have $60-70K that I'm planning on investing in stocks/ETFs/funds. What are some of the advantages and disadvantages of investing this amount of money with a human financial advisor vs an automated "...
Ren's user avatar
  • 261
2 votes
1 answer

Any financial advantage of a human portfolio manager over a robo-advisor?

It has been shown time and again that markets are unpredictable and that a buy-and-hold strategy is advantageous ("A random walk down wallstreet" / Malkiel, and many others). Moreover, newer and newer ...
Sparkler's user avatar
  • 508
2 votes
4 answers

Why is tax loss harvesting helpful for passive investing?

I am considering opening an account with a robo-advisor (e.g. Wealthfront), and in my research I have seen that robo-advisors often advertise tax loss harvesting as a feature of their accounts. ...
Stephen's user avatar
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3 votes
1 answer

Are the investments of account holders of wealthsimple insured by CIPF?

Wealthsimple informed in their FAQ that the investments of account holders are insured by CIPF. As per CIPF, only the account holders of member firms are insured. Wealthsimple is not listed as a ...
user52724's user avatar
4 votes
1 answer

Spreading money between robo trading services

Several robo trading services allow investing without a fee up to a certain amount. Why would someone not take advantage of this and spread their investments over several such services to minimize ...
ford prefect's user avatar
1 vote
2 answers

Is a robo-adviser worth the risk?

I've seen a lot of talk lately about robo-advisers that manage stock portfolios for minimal expenses. The expenses are usually paid by ETF's. I am not very well versed in all this stock and ...
Jose Luis's user avatar
  • 221
2 votes
1 answer

Withdrawing money from services like Betterment

I'm not clear what the withdrawal process looks like for services like Betterment. Let's say I need some money in 2 years. Do I sell a portion of portfolio for the amount that I need? Can I cherry ...
varm's user avatar
  • 331
6 votes
3 answers

What are the tradeoffs with the small scale managed fund Wealthsimple?

I recently encountered a targeted ad about Wealthsimple. From what I have read it is an investing tool for mobile devices that helps you passively invest. I understand that it is for people who are ...
leeman24's user avatar
  • 436
12 votes
5 answers

What fraction of a portfolio should P2P lending comprise?

Based on what I understand, traditionally we are supposed to put 70% money in stocks and 30% money in bonds (based on individual age, I am 33 right now). I have been experimenting on P2P lending and ...
Ved's user avatar
  • 435
16 votes
5 answers

Why might a robo-advisor service like Betterment be preferable to just buying a single well-performing index fund like SPY?

Edit: I think it would be beneficial for any answers to include whether the answerer uses a diversified portfolio or not in their own finances, and whether they have any affiliation with Betterment or ...
Andrew Roth's user avatar