Abstract
The takeover of robo advisors in the classic field of investment management is an
emerging trend across the industry. Today, most robo-advisors are build on the fundamental
principles of the modern portfolio theory, with the objective in obtaining the optimal
portfolio that provides the highest expected returns given the risk. Although robo-advisors
are already widely known, the inner workings of each robo-advisor remains obscured.
This paper will provide a deep insight in the methodologies behind the three major
robo-advisors in the market, namely, Betterment, Schwab Intelligent Portfolio and
Wealthfront, and will compare and contrast the robo-advisors through three factors,
that is, asset allocation, portfolio rebalancing and monitoring.
Material is made available in this collection at the direction of authors according
to their understanding of their rights in that material. You may download and use
these materials in any manner not prohibited by copyright or other applicable law.
Rights for Collection: Research and Writings
Works are deposited here by their authors, and
represent their research and opinions, not that of Duke University. Some materials
and descriptions may include offensive content.
More info