Finance glossary
Robo-Advisor
Definition
An automated platform that manages investments by algorithm.
A robo-advisor uses software to build and manage a diversified portfolio based on a client goals and risk tolerance, handling rebalancing and tax-loss harvesting automatically. With low fees and minimums, it has made professional-style management accessible to everyday investors.
In a sentence
A robo-advisor automatically built and rebalanced her portfolio for a fraction of a human adviser's fee.
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