Robo-Advisor
An automated investment service that builds and rebalances a portfolio for a low fee.
Robo-advisors like Betterment, Wealthfront, and Schwab Intelligent Portfolios use questionnaires to set an allocation across low-cost ETFs, then automatically rebalance and (often) tax-loss harvest. Management fees usually run 0.25% per year on top of underlying ETF fees of about 0.05% to 0.15%. They are SEC-registered investment advisers and held to a fiduciary standard. For someone who would not otherwise build a three-fund portfolio, the all-in cost of roughly 0.3% is reasonable; a self-directed VTI / VXUS / BND portfolio at Vanguard or Fidelity is cheaper still.
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.