Do Robo-Advisors outperform Human Financial Advisors?

Abstract

This dissertation investigates whether robo-advisors outperformed asset managers. The aim of this work is to study the theories and methods used by both and to compare their performances in order to find out whether robo-advisors can outperform a team of qualified professionals. In the literature review, we observe how asset allocation is carried out in both cases, their models and the theories on which they are based. In the analysis, the researcher decided to carry out a case study in order to compare the performance of both advisors. It was decided to study only the Spanish market to facilitate the analysis and conclusions. The results show that robo advisors are efficient and can outperform asset managers. However, in very adverse times, asset managers continue to show a high level of expertise by being able to adapt more effectively and obtain better returns. In conclusion, the results and their interpretation are discussed as well as the limitations and recommendations for future research on the topic.