In Canada, robo-advisors (or robo-advisers) have little to do with Terminator-like killer robots. In fact, these investment services employ real-life portfolio managers to manage their clients’ money. So no robot actually buys or sells on the stock markets.
The portfolio managers who work for robo-advisors build several portfolios corresponding to different risk profiles. When opening an account with a robo-advisor, several questions are asked to determine the client’s risk profile and thus determine the most suitable portfolio.
While Canadian robo-advisors use predefined portfolio templates, robo-advisor services in the United States offer automated portfolio management.
The main advantages of using robo-advisors are that it requires no investment knowledge and they provide attractive transaction costs. You can compare robo-advisors by using Hardbacon’s comparison tool.
A portfolio manager is responsible for investing their clients’ money. Also known as a wealth manager, they work for high net worth individuals and institutional clients such as mutual funds or insurance companies. Read more
A portfolio is the sum of all your investments put together. For example, if you own two apartment buildings, your real estate portfolio is composed of those two buildings. Read more