How does a robo-advisor work? 
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Text, U.S. Wealth Management. U.S. Bancorp Investments. U.S. Wealth Management, U.S. Bancorp Investments is a marketing log for U.S. Bancorp Investments. Investment and insurance products and services including amenities are not a deposit, not F.D.I.C. insured, may lose value, not bank guaranteed, not insured by any federal government agency. A man in a suit jacket stands in a beige background. Graphics of graphs and gears. 
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SPEAKER: Even though Automated Investor is called a robo-advisor, we have our best and brightest investment professionals working behind the scenes. They do all of the research, handpick the funds, and build the portfolios we manage for you. I'll explain. 
Your money is invested in what are called exchange traded funds, or ETFs. 
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E.T.F's. A graphic of a folio and bills. Text, Stocks, bonds. 
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An ETF is basically a basket of stocks or bonds. When you own one ETF, you're actually buying into a number of companies. 
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There are thousands of ETFs out there, but our team of specialists review and hand pick which specific ETFs we make available for our Automated Investor portfolios. 
How do we decide? We look for a few things when choosing which funds to offer. 
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Historical performance-- we look at how the ETF has been performing compared to its benchmarks. 
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Fees-- we choose ETFs with lower fees, so you get more for your money. And then provider strength-- we choose ETFs with a strong brand reputation. 
We review our ETF selections regularly to ensure our robo-advisor is built with the best funds for our clients. 
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The next part of how your portfolio is constructed is what is called the asset allocation. Asset allocation determines how much to invest in each ETF. 
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So we might say you need a percentage of your funds in large growing companies, some in bonds, real estate, and maybe just a little bit in foreign companies. 
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Bonds, stocks, a house, and a store. 
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Your portfolio is diversified, which means it's spread across a number of different kinds of ETFs. 
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That is the beauty of a robo-advisor. Our investment professionals do the research for you and decide which funds and how much to invest in each. Then the robo part makes it happen and keeps you in balance. Happy investing. 
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Text, U.S. Wealth Management. U.S. Bancorp Investments. 8 6 6 7 5 8 8 6 5 5. U.S. Bank dot com slash automated investing. Annual advisory fee is 0.24% of invested assets. Minimum investment is $5,000. Investment products and services are available through U.S. Bancorp Investments, an investment adviser and brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank. Copyright 2019 U.S. Bancorp.