The Black-Litterman model extends the framework of modern portfolio theory by allowing portfolio managers to include their views in the optimization process. The study tries to repro-duce elements of Betterment’s approach to Black-Litterman in asset allocation. The case of Betterment is used to illustrate the strengths and weaknesses of the application of Black-Litterman in the asset allocation process of innovative Robo Advisory platforms as well as to analyze the risk assessment and the ETF selection processes for the investor.
Fischer et al. (Mon,) studied this question.