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E*TRADE Core Portfolios shines with its customer service, competitive fees, and low account minimum.
E*TRADE Core Portfolios could be a good fit for you if:
With great access to customer service, low-cost investments, and automatic rebalancing, E*TRADE Core Portfolios is a great option for anyone with at least $500 to start investing.
$0 per trade, management fee 0.30%, expense ratio 0.06%-0.12%
$500
On E*TRADE Core Portfolios Secure Website.
We believe in comparing options before committing. E*TRADE Core Portfolios might be right for you -- or it might not. Here are two robo-advisors we recommend highly for you to compare side by side with E*TRADE Core Portfolios when deciding which robo-advisor is right for you:
Most major online stock brokers have introduced their own robo-advisor platforms, and E*TRADE's version is called E*TRADE Core Portfolios. In this E*TRADE Core Portfolios review, we'll take an in-depth look at how this robo-advisor platform works, what it costs, and its features.
At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
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E*TRADE Core Portfolios has a highly rated customer service department and flexible support hours. Clients and potential clients can speak with a specialist weekdays from 8:30 a.m. until 8:30 p.m. EST.
E*TRADE requires a $500 initial investment, which is on the lower end of the range among the best robo-advisors -- some don't have a minimum deposit requirement, while others require minimums of $5,000 or more.
E*TRADE Core Portfolios invests client assets in portfolios made up of low-cost exchange-traded funds, or ETFs, which have underlying expense ratios ranging from 0.06%-0.12%.
In addition to its standard customized portfolio options, E*TRADE Core Portfolios allows investors to choose specific focuses, such as tax-advantaged portfolios and strategies that exclusively invest in socially-responsible ETFs.
Unlike robo-advisors that periodically rebalance portfolios once or twice a year, E*TRADE automatically rebalances portfolios that drift too far from investment targets, typically 5% or more.
E*TRADE Core Portfolios integrates with other accounts on E*TRADE's platform, which allows clients to see all of their accounts in one place, and facilitates smooth transfers into and out of the E*TRADE Core Portfolios account. Any existing E*TRADE account can also be easily converted into an E*TRADE Core Portfolios account.
Unlike some of its competitors, E*TRADE Core Portfolios offers tax-loss harvesting strategies, which can save many investors a lot on their taxes. The platform also offers a portfolio of tax-sensitive ETFs specifically designed for clients who are worried about tax implications. This feature is limited to taxable E*TRADE Core Portfolios accounts.
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E*TRADE Core Portfolios charges a 0.30% annualized management fee, far lower than you'd pay for a human financial advisor, but on the higher end of our favorite robo-advisor platforms.
According to E*TRADE's website, "For Core Portfolios clients, interaction with E*TRADE Capital Management will generally be limited to the web-based interface." You can speak with a Core Portfolios specialist, but this is more along the lines of technical support, not financial advice.
How E*TRADE Core Portfolios works: E*TRADE's application process is seamless, making it a great broker for beginners who are filling out a new brokerage account application for the first time. New clients first fill out a quick but thorough questionnaire to help E*TRADE assess their risk tolerance and investment goals. Next, clients see a recommended portfolio, plus an alternative. For example, E*TRADE might think you have a high risk tolerance based on the questionnaire, but if the recommended portfolio seems too risky, there's a second option that might be a better fit.
Once you've accepted a portfolio option, chosen customizations, and made your opening deposit, you can start investing with a simple click of the mouse. E*TRADE monitors portfolios and rebalances them automatically to make sure the target investment allocation is maintained, and accounts integrate nicely with other E*TRADE brokerage and bank accounts.
Some customization options including tax-advantaged investments, investing exclusively in socially-responsible companies, or using so-called "Smart Beta" ETFs to potentially boost returns. You can also open an E*TRADE Core Portfolios account as a standard individual or joint brokerage account, a custodial account, or an individual retirement account (IRA).
Like most robo-advisors, E*TRADE Core Portfolios has two types of ongoing investment fees. You'll pay a flat management fee to E*TRADE, equal to 0.30% of your assets per year. This translates into $3 for every $1,000 in your account. In addition, your portfolio's investment funds (exchange-traded funds, or ETFs) have their own fees, known as expense ratios.
In terms of all-in pricing, E*TRADE is in the middle of the pack when it comes to our favorite robo-advisors. The account management fee is on the higher end, while its ETFs are quite reasonably priced.
SERVICE/ITEM | E*TRADE Core Portfolios COST |
---|---|
Account management fee | 0.30% |
Investment fund fees | 0.06%-0.12% |
All-in fees | 0.36%-0.42% |
Other account charges | $75 transfer-out fee |
There are two types of support that robo-advisor clients might need -- investment advice from a human being, and help with technical issues. Here's how E*TRADE Core Portfolios stacks up.
When it comes to technical support, E*TRADE Core Portfolios shines. It has a highly rated customer service department, and the hours are flexible. You can call and talk to an E*TRADE Core Portfolios specialist anytime from 8:30 a.m. until 8:30 p.m. EST.
On the other hand, E*TRADE Core Portfolios clients generally don't have access to human financial advisors. Some rival robo-advisors provide access to financial planners who can provide guidance if, say, a client wants to save to buy a house. E*TRADE Core Portfolios clients don't get this level of advice.
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Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Vanguard Digital Advisor's services are provided by Vanguard Advisers, Inc. ("VAI"), a federally registered investment advisor. VAI is a subsidiary of VGI and an affiliate of VMC. Neither VAI nor its affiliates guarantee profits or protection from losses.
Vanguard Digital Advisor is an all-digital service that targets an annual net advisory fee of 0.15% across your enrolled accounts, although your actual fee will vary depending on the specific holdings in each enrolled account. To reach this target, Vanguard Digital Advisor starts with a 0.20% annual gross advisory fee to manage Vanguard Brokerage Accounts. However, we'll credit you for the revenues that The Vanguard Group, Inc. ("VGI"), or its affiliates receive from the securities in your managed portfolio by Digital Advisor (i.e., at least that portion of the expense ratios of the Vanguard funds held in your portfolio that VGI or its affiliates receive). Your net advisory fee can also vary by enrolled account type. The combined annual cost of Vanguard Digital Advisor's annual net advisory fee plus the expense ratios charged by the Vanguard funds in your managed portfolio will be 0.20% for Vanguard Brokerage Accounts. For more information, please review "https://personal.vanguard.com/pdf/vanguard-digital-advice-brochure.pdf" Form CRS and the Vanguard Digital Advisor brochure.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
E*TRADE services are available just to U.S. residents.