Robo-Advisor Defintition

Learn the definition of robo-advisor and other ETF terminology from the etf.com glossary.

ETF
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Learn more about Robo-Advisors

A Robo-Advisor, a technological innovation within the investment landscape, employs algorithms to automate investment advice and portfolio management. In the context of ETFs, Robo-Advisors construct and manage portfolios based on investors' risk tolerance and financial goals, leveraging the diversification benefits offered by ETFs. This digital approach democratizes access to sophisticated investment strategies, providing cost-effective, accessible, and customized solutions. Robo-Advisors enhance the investor experience by combining the efficiency of technology with the diversification potential of ETFs, catering to a growing segment of investors seeking hands-off, algorithm-driven approaches to wealth accumulation and financial planning.

Related Terms

Exchange-Traded Fund

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.