The roboadvisor is meant for investors who do not want to make their own selection of investment products. there is built in a dynamics that major parts of the portfolio could in short term be switched to other products that the management teams believes are better according to circumstances, this dynamics is programmed into computer algorithms. The trade off can be that it is still active management, which is known in the stock mutual fund field to not be successful contrary to popular belief, when compared to passive indexing ETFs.
Even when the direct (plus intransparent indirect) fees are probably low when compared to mutual fund active investing, these fees decrease the performance.
The well informed individual retail investor today has so many opportunities to build up her strategy (passive indexing ETFs) that roboadvisors are not needed.
As you mentioned correctly a World Index (f ex MSCI or FTSE), could be all a retail investor needs as to stock market investment products, but a lot of patience is also needed.
good luck !
The roboadvisor is meant for investors who do not want to make their own selection of investment products. there is built in a dynamics that major parts of the portfolio could in short term be switched to other products that the management teams believes are better according to circumstances, this dynamics is programmed into computer algorithms. The trade off can be that it is still active management, which is known in the stock mutual fund field to not be successful contrary to popular belief, when compared to passive indexing ETFs.
Even when the direct (plus intransparent indirect) fees are probably low when compared to mutual fund active investing, these fees decrease the performance.
The well informed individual retail investor today has so many opportunities to build up her strategy (passive indexing ETFs) that roboadvisors are not needed.
As you mentioned correctly a World Index (f ex MSCI or FTSE), could be all a retail investor needs as to stock market investment products, but a lot of patience is also needed.
good luck !