Markets

What good is the robot as an investment advisor?

Ttransparent, simple, quickly accessible. These are the things that are the first things that catch the eye of automated, web-based asset managers, or robo-advisors for short. With fewer than 30 providers, the market is more manageable than that of human competition, and data transparency is part of business in the best internet usage. There are also platforms that carry out their own real money tests such as geldanlage-digital.de or Brokervergleich.de. If you look at it, you will see: Of course, the robos did not survive the Corona crisis without damage. According to data from Brokervergleich.de, those who owned a portfolio there that should offer a balance between risk and opportunity lost between 13 and 28 percent during the crash in March.

That wasn’t all that bad, given the 21 percent loss of a benchmark index made up of stocks and bonds, as it even managed to beat some of the virtual investment advisors. This was seldom granted to them in previous tests, the last time in the test period between May 2017 and 2018, when at least two of the ten advisors on the market at the time performed better. The relative average performance has also deteriorated since mid-2018. The average used to be less than 1 percentage point below the index, which was within the expected range. Since most robots use ETFs for their portfolios that track markets, the fees should mean that the performance is slightly below the market development. In the pre-Corona period, however, this gap had risen to more than 3 percentage points and has only decreased slightly since then.

Tags

Related Articles

Back to top button
Close
Close