Best if you want
A well-diversified automated portfolio with the ability to incorporate socially-conscious investments in your portfolio (ESG) for no additional cost. E*TRADE also stands out from some other roboadvisors by offering access to investment specialists if you ever want personalized guidance. This product charges a competitive fee and also uses low cost funds with below average expense ratios. E*TRADE offers a solid desktop and mobile experience.
Fees
0.30% of your assets per year (e.g. $30 per year if you had $10,000 in assets).
What you can invest in
When you set up your account with E*TRADE account, they’ll ask you a series of questions about your financial situation and preferences. This is known as a “risk-tolerance questionnaire” and is a common starting point when a portfolio is created for you. E*TRADE has one of the more thorough questionnaires out there to ensure your portfolio matches your investing preferences.
Based on your answers and how much risk you’re willing to take, E*TRADE will create a portfolio for you. They’ll invest your money in a combination of assets like equities (stocks), fixed income (bonds), and other investments. Like other roboadvisors, they tend to invest your money in exchange-traded funds (ETFs) that allow you to efficiently get access to these asset classes.
Other features
E*TRADE allows you to choose socially conscious portfolios (ESG) if you’d like for no additional cost. This is a great feature if you’d like your investment strategy to be in line with other social goals. In addition, E*TRADE offers a robust set of investment resources for users who want to learn more about investing; this is especially valuable for beginners.
Limitations
While E*TRADE does offer well diversified portfolios, you won’t have exposure to international bonds or real estate, although these assets aren’t necessarily needed for a diversified portfolio. However, E*TRADE does offer a unique smart beta ETF – this is a more actively traded investment portfolio that tries to outperform market index.
Conclusion
Overall, E*TRADE core portfolios offers a compelling roboadvisor option that can provide a range of portfolios to match your investment preferences. With a competitive and transparent fee structure – as well as unique portfolio options like ESG investing and a smart beta ETF – E*TRADE offers choices for various investment styles. For new investors in particular, E*TRADE offers helpful educational resources to get you up to speed on various investment styles and portfolio options.
