Which statement is true regarding robo-advisers?

A. As no human advisors are involved, fully-automated robo-advisers are not regulated in the U.S.
B. Most robo-advisers take an active investment approach because they can process big data in a timely manner.
C. A robo-adviser offers investment services for fees that are often less than what a human advisor would charge.

Correct Answer: C

A is false. They are regulated by the SEC.
B is also false. Most of them follow a passive investment approach and offer fairly conservative advice.
C is true. Robo-advisors can provide automated advisory services to underserved retail investors, who are less able to afford a traditional financial adviser.