Einzelaktien, ETFs oder Robo-Advisor? (2024)

FAQs

Are robo-advisors better than ETFs? ›

Robo-advisors help automate the decision-making, recommending a portfolio that aligns with an investor's goals and preferences. Robo-advisors may carry higher fees than ETFs, but their costs usually remain below those of a traditional human advisor.

Do robo-advisors outperform the S&P 500? Robo-advisors can outperform the S&P 500 or they can underperform it. It depends on the timing and what they have you invested in. Many robo-advisors will put a percentage of your portfolio in an index fund or a variety of funds intended to track the S&P 500.

Limited Flexibility. Most robo-advisors won't be able to help you if you want to sell call options on an existing portfolio or buy individual stocks. There are sound investment strategies that go beyond an investing algorithm.

In other words, robo-advisors are great for those who want to invest in guidance and support, while brokerage accounts offer freedom and flexibility to investors who want more active control over their portfolios.

Nearly 7 in 10 Millennial millionaires have some money in robos or automated portfolios. Moreover, nearly 20% of Millennial and Gen Z households who know the investment products they own have some money in robos versus only 13% of Gen X and only 2% of Boomer+ households (Boomers and older).

Robo-advisor performance is one way to understand the value of digital advice. Learn how fees, enhanced features, and investment options can also be key considerations. Five-year returns from most robo-advisors range from 2%–5% per year.

Key Points. Buffett has a long track record of beating the S&P 500 without taking on undue risk. Berkshire's equity portfolio is full of great companies with above-average earnings prospects.

According to our research, Wealthfront is the best overall robo-advisor due to its vast customization options, fee-free stock investing, low-interest rate borrowing, dynamic tax-loss harvesting, and other key features.

For core investing and planning advice, a robo-advisor is a great solution because it automates much of the work that a human advisor does. And it charges less for doing so – potential savings for you. Plus, the ease of starting and managing the account can't be overstated.

A robo-advisor can help ease the burden of managing your portfolio as you transition to retirement—and help you figure out how to tap your assets in tax-smart ways.

Can you lose money with robo-advisors? ›

Robo-advisors are much quicker to respond to changes in your assets, but they are not able to predict market outcomes. It is just as possible to lose money using a robo-advisor as it is using a human advisor.

The pitch that robo advisors would replace human financial advisors never made sense. Fundamentally, the robos didn't give a whole lot of advice. They were simply managing investments. They offered diversified portfolios based on some standardised risk assessments.

If you value control, have a good grasp of investing, and are willing to put in the time, then self-directed investing may be a good fit. If you prefer a hands-off approach or are just starting out, then a robo-advisor could be a better choice.

These low-cost, low-minimum platforms are ideal for novice investors seeking competent portfolio management. Based largely on principles of diversification and Modern Portfolio Theory, most robo-advisors cater to long-term investors who don't mind a passive indexing approach.

Robo-advisors often build portfolios using a mix of various index funds. But depending on the asset class mix and the particular index funds selected, a robo-advisor may underperform or outperform a broad equity index like the S&P 500.

The type of advisor that is better for you depends on what your financial needs are. For core investing and planning advice, a robo-advisor is a great solution because it automates much of the work that a human advisor does. And it charges less for doing so – potential savings for you.

Mutual funds are typically handled by money managers, who make the decisions about which assets will be purchased. A robo advisor is a software program that picks investment options based on pre-set algorithms. So, mutual funds are generally run by humans, and robo advisors are run by software programs.

For example, if you're trying to pay down debt or save for your child's college years, they can offer advice on what steps to take so you can build wealth at the pace you want to. A robo-advisor might not be able to take those things into account when mapping out your investment strategy.

Robo-advisor fees and account minimums

Robo-advisors are much cheaper than an-person human financial advisor. Most companies charge between 0.25% and 0.50% as an annual management fee, though there are even free options such as Sofi Automated Investing.