Why You Should Choose an Actively Managed Robo Advisor
US News and World Report quotes Benjamin Halliburton, Chief Investment Officer, on the advantages of using active management in a robo advisor in the recently published article, “Should I Use an Actively Managed Robo Advisor?”
Benjamin Halliburton, chief investment officer at Building Benjamins robo advisor in Summit, New Jersey, also touts the hybrid passive and active approach. He believes there are areas of the market where active investment can add value and includes those in the Building Benjamins robo advisor.
“Active allocation to diversifying assets like real estate, reinsurance, infrastructure, alternative lending, timberland and variance risk premium capture is the wisest way to improve the expected risk adjusted return profile,” Halliburton says. His rule of thumb is use passive funds in efficient corners of the market and extract value from less efficient sectors such as emerging markets and small-cap holdings. The management fee is 0.45 percent.
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