Robo-advisors use algorithms to create and manage diversified investment portfolios based on individual risk tolerance, goals, and time horizons. These platforms offer low-cost portfolio management, automatic rebalancing, tax-loss harvesting, and personalized investment recommendations without human financial advisors.

Revenue primarily from annual management fees (0.25-0.50% of assets under management). Additional income from premium tiers ($3-8/month) offering human advisor access, advanced tax strategies, and financial planning tools. Some platforms earn referral fees from banking and lending product integrations.

• Client Acquisition Cost

  Average cost to acquire new investing clients

• Portfolio Performance

  Risk-adjusted returns compared to target benchmarks

• Customer Lifetime Value

  Total fee revenue generated per client over their lifetime

Betterment, Wealthfront, M1 Finance