Assessing the Drivers of Robo-Advisor Reprofiling: Evidence of Time-Varying Risk Aversion
While passively managed funds are increasingly used by asset managers, some investors in these delegated arrangements opt to manually alter their asset allocation along the risk-return spectrum. To understand why and how, we use a novel micro-level dataset of 6,247 French robo-advisor clients who...
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| Hoofdauteurs: | , , |
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| Formaat: | Article ou chapitre numérique |
| Taal: | Français |
| Gepubliceerd in: |
2026
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| Onderwerpen: | |
| Online toegang: | Accès Université d'Orléans et IFPM |
| Samenvatting: | While passively managed funds are increasingly used by asset managers, some investors in these delegated arrangements opt to manually alter their asset allocation along the risk-return spectrum. To understand why and how, we use a novel micro-level dataset of 6,247 French robo-advisor clients who made 9,250 changes to their investment portfolios between 2015 and 2022. Micro-level demographic and financial variables as well as macro-level market returns and volatility are drivers in the decision to change one’s passively managed portfolio. In addition, how these changes affected investors’ returns are studied. A counterfactual test showed that on average accounts which adjusted their portfolio allocation outperformed identical hypothetical accounts in which no changes were made, but this result was not replicated in the field using a more constrained dataset including only realized gains (i.e., closed accounts).
JEL Classification: G11, D14, G51, G41
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