Robo Advisor Vs. Hura's A.I. SmartFolio
The Difference In Stock Market Investment Accounts
Maybe you've wondered, "What's the difference between Hura's A.I. SmartFolios and Robo Advisor company products like Betterment, Wealthfront, Wealthsimple, and others?" Actually, Hura is NOTHING like those Robo Advisors or Index Funds.
Robo Advisors use a strategy called rebalancing that utilizes algorithms to rebalance your account. Essentially, this means it performs an automated adjustment of funds. Robo Advisor algorithms require no intelligence whatsoever. It is just a repeatable algorithm.
Hura uses A.I. technology to analyze and trade the market for you. What does that mean? In essence, the difference is comparable to driving a Tesla compared to a Honda Civic. In the Honda Civic, you can use cruise control, which would keep your car going at a certain mph. But the Tesla would completely drive, protect and control the speed of the car for you. Hura's A.I SmartFolios are like driving a Tesla, whereas Robo Advisors are like driving a Honda Civic. We'll go into the details below.
Explore Our A.I. SmartFolios
What Hura A.I. SmartFolios Technology Does - Risk Management For Stock Trading Apps
Hura's A.I. SmartFolio technology uses a complicated analysis on your stock positions (DAILY). This type of machine learning can make decisions to trade on your behalf, based on risk and profitable future results. The A.I. SmartFolio acts with intention. It uses the A.I. to analyze risk and will then perform a buy, sell or hold, if it sees long-term profitable results. This is a done-for-you solution and doesn't require customers to understand how the stock market works.
For example, Hura’s A.I. predicted a dip at the beginning of 2020. Back in November 2019, the A.I. SmartFolio automatically sold a large portion of Hura's customers' positions in the S&P 500 (SPY), as shown in the graph. This action saved customers a big part of their investments because of the sharp losses that took place in February 2020. The S&P 500 (SPY) suffered a -32.3% loss.
What happened? The A.I. SmartFolio "Tactical Model" started to see red flags in the market, meaning risk was increasing at a high rate. This prompted the A.I. SmartFolio to decide to sell a large portion of its positions. This sell took place in November 2019 and the stock crashed three months later in February 2020.
The A.I. SmartFolios are designed to see volatility and risk. Based on the analysis of these factors, it will then buy, sell or hold A.I. investment positions. We do not believe in a crystal ball or knowing EXACTLY what a stock will do in the future. However, we've shown in historical results, it's possible for our A.I. SmartFolios to get close enough to avoid large crash losses. Robo Advisors and Index Funds rely on the market increasing over time. This is fine if you're willing to accept mediocre returns and high fees.
After the market crashed, Hura's A.I. SmartFolio bought back into the market on March 17, 2020, just as the market started its sharp recovery. This shows the A.I. foresaw the market would create a V-shaped recovery. Where did this A.I. SmartFolio technology come from? This A.I. has been developed over the last 20 years, using more than 4 Billion dollars of investment funds. Kelly Korshak, CTO & Co-Founder of Hura, along with his team, are the architects and geniuses behind the machine learning systems.
Read more about Kelly Korshak
What Robo Advisors Do - A Strategy Called Rebalancing
Companies with Robo Trading Advisors use a strategy called rebalancing to grow their wealth. This type of strategy utilizes diversification. Your money is put into different groups of stocks giving you a portfolio that is balanced (some bonds and tech stocks). By diversifying your money, these companies hope that over time, you will make money as the stocks grow in value. Rebalancing occurs when some of your stocks grow more than others. When this happens, the Robo Advisor will automatically buy and sell stock portions. It does this in order to get your portfolio back to its original diversified portfolio. This type of strategy doesn't try to avoid risk through analysis or any kind of intelligence. Below is an example of rebalancing.
To Better Understand Rebalancing, See The Following 3 Steps:
Step 1. You invest $200 | $100 in Portfolio A (50% of Investments) and $100 in Portfolio B (50% of Investments).
Step 2. Wait One Month | Portfolio A grows to $150 (60% of Investments). Portfolio B stays at $100 (40% of Investments).
Step 3. Robo Advisor Rebalancing | Robo Advisor automatically sells $25 in Portfolio A, changing it to $125 (50% of Investments) and buys $25 of Portfolio B, changing it to $125 (50% of Investments).
*Result: Investments are rebalanced. | Both portfolios are back to a 50% split of total investment value.
Hura doesn’t believe rebalancing is an effective tool to preserve, protect and grow wealth. The key to good returns is investing in what is successful and managing risk for higher returns. Robo Advisors don't do any of that!
This is why Robo Advisors under perform. Currently, Hura is the only software giving individuals the ability to use A.I. SmartFolio technology to protect and grow their wealth through automation. It has the power to actually manage the risk for your investments based on A.I. SmartFolio decision making.