Robo-Advisor

A robo-advisor is an automated investment service that builds and manages a diversified portfolio, usually of low-cost ETFs, based on an investor's goals and risk tolerance, with little or no human advisor involvement. Fees are typically a small percentage of assets annually, well below traditional human financial advisory fees.

Most robo-advisors also automate mechanical tasks that individual investors often neglect, like periodic rebalancing and tax-loss harvesting, which can add meaningful value over time even though the underlying portfolio construction is fairly simple.