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Robo-Advisor Algorithms

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Table of Contents

Definition
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ML models optimizing asset allocation and tax strategies.

Key Characteristics
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  • Risk tolerance
  • Tax-loss harvesting
  • Rebalancing
  • ESG filtering

Why It Matters
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Reduces management fees by 80% (Betterment).

Common Use Cases
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  1. Retirement planning
  2. Education savings
  3. Trust accounts

Examples
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  • Wealthfront
  • Vanguard Digital
  • Schwab Intelligent

FAQs
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Q: Minimum investment?
A: As low as $500 for fractional shares.

Q: Human oversight?
A: Hybrid models available.