# Robo-advisor

> A robo-advisor is an automated investment service that builds and manages a portfolio for you from an online questionnaire, usually for less than a traditional advisor charges.

Canonical page: https://find.wellspent.co/glossary/robo-advisor/
Also called: robo-adviser, digital advisor, automated investing

The SEC describes robo-advisers as automated digital advisory programs that ask about your goals, time horizon, income and risk tolerance, then create and manage a portfolio. They often cost less and have lower minimums than traditional advisers, and their services vary widely.

A robo-advisor manages a portfolio. It won't tell you when to claim Social Security, how to handle a stock grant or what to do with an inheritance. Hybrid services add access to human advisors for a higher fee. For comparison, fee-only firms that publish an asset-based rate charge a median 1% a year on the first tier, and many also offer flat-fee planning that works alongside a low-cost portfolio.

A robo-advisor that manages your money for a fee is an investment adviser, so its Form ADV is public like any other firm's.

## How to check

Search the service on the SEC's Investment Adviser Public Disclosure site and read its Form ADV Part 2A brochure for the fee, what is automated, and when a person is involved.

## Sources

- [Investor.gov (SEC), Robo-Adviser (checked October 31, 2026)](https://www.investor.gov/introduction-investing/investing-basics/glossary/robo-adviser)
- [Wellspent, What fee-only financial advisors charge (2026 Q4)](https://find.wellspent.co/reports/fee-only-advisor-fees/)
- [SEC Investment Adviser Public Disclosure](https://adviserinfo.sec.gov/)

## Related terms

- [Model portfolio](https://find.wellspent.co/glossary/model-portfolio.md)
- [Assets under management (AUM) fee](https://find.wellspent.co/glossary/aum-fee.md)
- [Flat-fee financial planning](https://find.wellspent.co/glossary/flat-fee.md)
- [Registered investment adviser (RIA)](https://find.wellspent.co/glossary/ria.md)