Robo advisors don't model interest rates at all. They essentially just estimate volatility of asset classes and do a round of Markowitz Portfolio optimization;

Robo advisors don't model interest rates at all. They essentially just estimate volatility of asset classes and do a round of Markowitz Portfolio optimization; they are easy to build (it takes a few days only). There is very little smarts behind them. They exist because in the past, private banks wealth management would charge customers 2% of assets per year for running the optimizer once a month (which made sense in the 1970s when only banks had computers big enough to do it).