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