Robo-advisors automate portfolio management — rebalancing, tax-loss harvesting, dividend reinvestment — without a human advisor. The fees are lower than traditional managers. For hands-off investors, they are the right tool.
How They Work
You answer a risk tolerance questionnaire. The algorithm builds a diversified portfolio (typically low-cost ETFs) and automatically rebalances when your target allocation drifts. Some add tax-loss harvesting, direct indexing, or income planning.
Top Robo-Advisors — 2026
Betterment — 0.25% annual fee (0.40% for premium). Tax-loss harvesting, automatic rebalancing, fractional shares. Best for people who want the most polished UX and a track record of feature innovation.
Wealthfront — 0.25% annual fee. Path planning features, direct indexing for accounts over $100K. Best for long-term goal planning with tax-efficient direct indexing.
Fidelity Go — Free for balances under $25K ($3/month flat fee). 0.40% for $25K+. Rebalancing + human advisor access above $25K. Best for people already using Fidelity for retirement accounts.
Schwab Intelligent Portfolios — Free (Schwab makes money on cash allocations, not fees). No tax-loss harvesting. Best for cost-conscious investors who already bank with Schwab.
Who Should Use a Robo-Advisor
Anyone who knows they should be investing but hates the research and psychology of it. For a deeper look at the hands-off investing approach and whether it suits your goals, a guide to passive investing platforms covers the full landscape. The fee is worth it for behavioral protection — the app rebalancing automatically beats investor inertia every time.