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Solactive is happy to announce that its report on robo-advisors, Robo-Advisory: A closer look at the engine room, has been published and is now available online. The report looks at some of the questions associated with the growing robo-advisory trend, mainly related to transparency, historical performance, and asset allocation by studying robo-advisors in the U.S. and Germany.
In the first part, the report introduces the story of three investors with different risk profiles - Mr Bart S., Mrs Lisa S., and Mr Abraham S. - and compares the asset allocations assigned by the sampled robo-advisors, seeing whether there are any differences between U.S. and German providers.
In the second part, the report presents a simulated model that can serve to benchmark the portfolios recommended by other robo-advisors. Considering the relatively short history of robo-advisors, the sample model provides an overview of results across asset classes over a longer period of time and in different market environments.
The report concludes with Solactive’s Head of Research, Timo Pfeiffer, commenting on the outlook of the robo-advisory landscape.
Some of the key findings include: 1) robo-advisors rely on different optimization approaches to determine the recommended portfolios; 2) there are important differences between U.S. and German robo-advisors regarding portfolio allocation and expenses; 3) robo-advisors are not wizard tools, as losses can still occur even for conservative investment strategies.
To access the full report, click here
For more information please visit: www.solactive.com/research
