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Robo-Advisor Guide

Explore automated investing with guides on robo-advisor basics, platform comparisons, and portfolio strategy.

Showing 5 guides

Basics(2)

Robo-Advisors 101 — Automated Investing Explained

Beginner

Robo-advisors use algorithms to build and manage diversified portfolios at a fraction of the cost of traditional financial advisors. Learn how they work, who they're best for, and what to expect. Most platforms invest your money in diversified ETFs and index funds, automatically rebalancing and applying strategies like tax-loss harvesting to boost after-tax returns. Whether you're saving for retirement or building long-term wealth, our Wealthfront vs Betterment comparison can help you choose the right platform for your goals.

Tax-Loss Harvesting — How Robo-Advisors Save You Money

Intermediate

Tax-loss harvesting sells losing positions to offset capital gains, reducing your tax bill. Learn how robo-advisors automate this process and maximize after-tax returns. Leading robo-advisor platforms scan your portfolio daily for harvesting opportunities — far more frequently than manual approaches. For a deeper look at how the top platforms handle this, see our Wealthfront vs Betterment head-to-head. Be sure to review our tax guides to understand wash-sale rules and annual deduction limits before you start.

Platforms(2)

Wealthfront vs Betterment — Head-to-Head

Beginner

Wealthfront and Betterment are the two largest independent robo-advisors. Compare their fees, features, tax optimisation, account types, and which is better for your situation. Both platforms excel at automated tax-loss harvesting, but they differ in direct indexing thresholds, human advisor access, and cash management tools. If you're looking for an even lower-cost option, see the Vanguard Digital Advisor at just 0.15% all-in. Explore the full robo-advisors hub to find the best fit for your investing style.

Vanguard Digital Advisor — The Low-Cost Giant

Beginner

Vanguard Digital Advisor combines Vanguard's ultra-low-cost index funds with automated portfolio management. At 0.15% all-in, it's one of the cheapest robo-advisors available. The platform builds your portfolio from broad-market index funds and ETFs, automatically rebalancing as markets shift. If you want to see how it stacks up against premium competitors, read our Wealthfront vs Betterment comparison. Not sure whether automation is worth the fee? Our DIY vs robo-advisor guide breaks down the trade-offs.

Strategy(1)

DIY vs Robo-Advisor — When to Manage Your Own Portfolio

Intermediate

Should you build your own portfolio or let a robo-advisor handle it? Compare the cost savings, time investment, and potential performance differences. A three-fund DIY portfolio can save you 0.25% or more per year, but you'll need discipline for rebalancing and tax optimisation on your own. Use our compound interest calculator to see how even small fee savings compound over decades. Browse the robo-advisors hub to compare top platforms, or check out Vanguard Digital Advisor for the cheapest automated option.