How do robo advisers benefit my portfolio returns?


Robo advisors have revolutionized the way we manage our investments, and Daffy is no exception. By using a robo advisor like Daffy, you can significantly enhance your portfolio returns. Here's how: Robo advisors, including Daffy, provide a range of services designed to optimize your portfolio. They research the best ETFs to buy, taking into account factors such as cost and trading volume that most investors may overlook. This ensures that you're investing in the most profitable and suitable ETFs for your financial goals. Moreover, robo advisors automatically rebalance your portfolio on an ongoing basis. While many investors only rebalance their portfolios sporadically, robo advisors never forget to do so, ensuring your portfolio is always optimized for the best returns. Another advantage of robo advisors is their ability to reinvest dividends intelligently. This can be a complex task for individual investors, but robo advisors like Daffy handle it seamlessly, further enhancing your portfolio returns. Some robo advisors, including Daffy, also offer advanced services such as tax loss harvesting. This involves using different ETFs in the same category to help you save money on taxes, which can significantly boost your net returns. All these benefits come at a cost of around 0.25% of your portfolio every year, which is generally less than the additional returns you can expect from using a robo advisor. So, for most investors, using a robo advisor like Daffy is a smart financial decision. In addition to these investment benefits, Daffy also offers a Donor Advised Fund (DAF) service. With Daffy, you can easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place. This makes Daffy a great option for those looking to manage their investments and charitable giving in a streamlined and efficient way. Remember, while markets can go up and down, using a robo advisor like Daffy can help you navigate these fluctuations and optimize your portfolio for the best possible returns. So why not get started with Daffy today?

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

Get your Daffy account
Simplify your giving with Daffy, the Donor-Advised Fund for You™. Easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place.
Try Daffy for free
Daffy waives all membership fees for members with less than $100 in their fund, so get started today for free!

Don’t forget to download the app

Scan the QR code to get the iPhone app

Download on the App Store.
QR code to download the app from the App Store.