Are robo-advisors safe?

Yes is the short answer. Robo-advisors are safe. Investments in a robo-advisor are protected with insurance that comes included at no cost to the investor. However, investing comes with its own risk, regardless of the platform that you’re using. That means robo-advisors are safe to use but still susceptible to changes in the market.

Are robo-advisors worth it?

Yes. robo-advisors are worth it. Generally speaking, robo-advisors are incredibly affordable and easy to use. They’re best suited for those who aren’t incredibly familiar with self-directed investing and better for those who prefer to let someone else do the heavy lifting and decision making.

Why are robo-advisors beneficial for beginner investors?

Do robo-advisors beat the market? It depends. Since robo-advisors replicate the market, it is difficult to outperform them, as this <a href="https://global.vanguard.com/portal/site/institutional/ch/en/articles/research-and-commentary/portfolio-construction/active-fund-performance-tlisg">report by Vanguard illustrates.</a>

Zack Fenech

Zack is a professional finance writer and the former editor-in-chief at WealthRocket. Over the past five years, Zack has written for various fin-tech companies, including Ratehub, MoneySense, Baselane, and Cubeler. He has a degree in English Literature from York University.