Robo advisors in Singapore tend to use a strategic combination of inexpensive ETFs to provide an affordable alternative to wealth management services. ETFs (exchange-traded funds) track a wide range of indices and are tradable by individual investors. The advantage of investing with robo advisor is that the platform will select a diversified portfolio of ETFs based on your investment goals (e.g. saving for retirement, a new home or university tuition) and economic conditions. On the other hand, other robo advisors choose to invest in unit trusts. There are several reasons an investor might prefer exposure to unit trusts rather than ETFs. For example, unit trusts are actively managed by professional fund managers. For many individuals, this research and expertise provided by robo advisors is quite valuable and well worth the relatively small management fee. However, those that would prefer to conduct their own research and choose individual stocks, bonds or ETFs should consider investing through an online brokerage instead.