"History shows robo-advisors failed to live up to the hype!
When robo-advisors first came out years ago, people asked if I was worried about my career. I said no, because I do believe that investing can be very complicated and a good advisor is worth it. I'm happy to report that has been the case. Robo-advisors have only accumulated one trillion dollars in assets: that's only 2% of the entire $50 trillion advisory market. JP Morgan Chase and Goldman Sachs both dropped their robo-advisor programs because their clients didn't feel the low cost provided what they needed.
Low costs were the initial selling point for robo-advisors, but today, most have added some human interaction. With that, costs have increased, and these hybrid services can now cost around 0.65%. In my opinion, that is still not a great option because you won't get a personal advisor and instead will be left with a team of people who really don't know your situation. The biggest problem I've seen with the robo-advisors has been when things get difficult, investors have no one to talk to, and they end up selling at the wrong time. When it comes to performance, I think most investors have found that the lower fees did not produce the results they had hoped for.
Over the last five years, the best performing robo-advisor based on a 60/40 portfolio was Sofi Automated Investing with a 7.8% annualized return. Schwab pulled up the rear with their Schwab Intelligent Portfolios showing a five-year annualized return of only 5.8%. It's important to point out these numbers are only if the investor stayed in the program for five years straight. Sometimes automation can be great, but there are just certain areas of life- such as your health and financial well-being- that you need a good professional on your side to talk to when you need."
Reference: Wilsey Asset Management