do robo advisors beat the market 
most robo advisors won t beat the market that s because their investing involves a passive index strategy that seeks only to replicate the market s return typically robo advisor investing is based on modern portfolio theory which relates to constructing a portfolio that maximizes return within an acceptable level of risk the bottom linerobo advisors leverage advances in algorithmic trading and electronic markets to automate investment strategies for ordinary investors often based on modern portfolio theory robo advisors are able to optimize investors risk return tradeoffs and automatically manage and rebalance their portfolios automation also allows for tax loss harvesting and other strategies that were once too complex or expensive for ordinary investors with low fees and small minimum balances required to get started robo advisors may be a good choice for most long term investors and may be especially attractive to younger tech forward individuals 