Are Robo-Advisors Passive Investors? | Rational Reminder 309
Published 2024-06-13
When robo-advisors first came onto the scene, they were pitched as an easy way to access index funds. These digital platforms provide algorithm-driven financial planning and investment services, with little to no human supervision, and typically use passive investment strategies. But while this technology has revolutionized access, not all robo-advisors are created equal. In today’s episode, Mark, Ben, and Cameron sit down to discuss the role of robo-advisors as passive investors, and the performance disparity in robo-advisor returns, as they investigate different robo-advisors, from Wealthsimple to Wealthfront. Next, in this week’s version of ‘Would you rather?’, we have robo-advisors pairing off against active bank mutual funds, with each of our hosts debating the pros and cons of these two approaches. For our aftershow section, we discuss listener feedback, interesting community discussions, Ben’s addiction to Excel, and much more. Tune in for a deep dive into robo-advisors and how to navigate this technology!
Timestamps:
0:00:00 Intro
0:05:38 Main Topic: Are Robo Advisors Passive Investors?
0:39:08 Would You Rather?
0:45:39 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-….
Rational Reminder Website — rationalreminder.ca/
Rational Reminder on Instagram — www.instagram.com/rationalreminder/
Rational Reminder on X — x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel/
Rational Reminder Email — [email protected]
Benjamin Felix — www.pwlcapital.com/author/benjamin-felix/
Benjamin on X — x.com/benjaminwfelix
Benjamin on LinkedIn — www.linkedin.com/in/benjaminwfelix/
Cameron Passmore — www.pwlcapital.com/profile/cameron-passmore/
Cameron on X — x.com/CameronPassmore
Cameron on LinkedIn — www.linkedin.com/in/cameronpassmore/
Mark McGrath on LinkedIn — www.linkedin.com/in/markmcgrathcfp/
Mark McGrath on X — x.com/MarkMcGrathCFP
Wealthsimple — www.wealthsimple.com/en-ca
Wealthfront — invest.wealthfront.com/
Rational Reminder Episode 308: Dan Bortolotti —
Episode 299: The Most Important Lessons in Investing — rationalreminder.ca/podcast/299
The Money Scope Podcast — moneyscope.ca/
Episode 251: Covered Calls — rationalreminder.ca/podcast/251
Papers From Today’s Episode:
‘Are Banks Better Money Doctors?’ — www.researchgate.net/publication/
377037694_Are_banks_better_money_doctors_An_analysis_of_mutual_fund_flows_of_bank_and_non-bank_funds_using_Canadian_data
All Comments (9)
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I love this podcast and I listen to it religiously. I realise that it is a podcast that morphed into a youtube, but I have difficulty following multiple numbers and statistics when read out. I understand that this would require more preparation, but I would really appreciate if a table could be displayed with the statistics while they are read out, like what Mark did when discussing the fees. Regardless, thanks for the magnificent work you do on this fantastically educative channel !
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I have to mention the reason I found out about this podcast is the financial planner I had a WS mentioned Ben's research during a check in. It was specifically about being more heavy in equities when young and the whole argument if bonds are even needed. Furthermore, they are all fiduciaries and make sure to mention it😂. They speak highly of you guys....before I even knew of PWL. Keep up the great quality work!
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There is a option in WS where u can auto invest portion of your paycheck in ETFs and stocks this is hands down the best feature that will help average investor to get average returns for above average time.
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Hello, I use WS. Even though I only have the trading account, which is free, I can access their financial planning services. There are two tiers, one at 100k (minimal tax and financial advice) and another at 500k (full advice).
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Love these shows. Thank you!
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Is there a link to the robo-adviser return comparisons referenced in the conversation?
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Thanks for this. I'd really like to see a video on the tontine based products coming onto the market. Being billed as VPLA's I believe? "Variable Payment Life Annuities". I think these are an interesting offering for Canadian retirees to watch over the coming years.
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what happened to the latest video ? suddenly went private
