Einzelaktien, ETFs oder Robo-Advisor? (2024)

FAQs

Is robo-advisor better than ETF? ›

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.

Robo-advisors provide customized advice to help you optimize your investments, whereas self-directed brokerage accounts give you full control over your portfolio. People looking for low-cost professional advice or low-involvement investing success may benefit from the services of a robo-advisor.

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. * And the performance of these automated investment services can vary based on asset allocation, market conditions, and other factors.

This will vary significantly depending on the risk profile of the portfolio, broader market conditions, and the specific robo-advisor used. Some robo-advisor portfolios may outperform the S&P 500 in certain years or under specific conditions, while in others, they underperform.

Digital Advisor Use Dropped in 2022

High-net-worth investors exited robo-advisor arrangements at the highest rates. Here's how the data broke down along asset levels: $50,000 or less: A drop from 23.6% to 20.6% in 2022, which translates to a decrease of 3 percentage points.

A robo-advisor can be a good choice when you're starting out and just looking for a simple way to begin growing your wealth. However, as your net worth improves and your situation becomes more complex, you might need to consider turning to a human financial advisor to help you navigate your financial future.

When it's time to tap your retirement investments for income, a robo-advisor can help you figure out how much you can afford to withdraw without depleting your savings too soon.

Robos can “help create a portfolio you are comfortable with.” (To be clear, robo advisors don't protect you from market fluctuations; you can still lose money if the stock or fund you invest in tanks after you buy it, and you choose to sell.

Why robo-advisors failed? ›

Robo advisors fall short of qualified human advisors in several ways. Among most platforms, the main service offered is portfolio management, which is a small part of what a qualified human advisor does. Here are the additional roles that many qualified human advisors take on.

Self-directed investing offers more control and the potential for higher returns, but requires a significant time investment and a solid understanding of financial markets. Robo-advisors provide an automated, low-effort investing experience, but may limit your investment options and come with their own set of fees.

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.

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.

For some, the simplicity, accessibility, and lower costs make them a very appealing choice. However, for those desiring more personalized service and sophisticated investment strategies, a human financial advisor may be worth the additional cost.

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.

On an after-tax basis, Wealthfront Smart Beta may have relatively better performance due to tax benefits than an index (for example, the S&P 500) or a fund that does not include tax-loss harvesting. Detailed tax-loss harvesting results are in the next section “Realized Results: Tax-Loss Harvesting”.