Table Of Content
What Is E*TRADE Core Portfolio?
E*TRADE Core Portfolio is a robo-advisory service designed to help investors build and manage a diversified portfolio with minimal effort, without using E*TRADE's active trading features.
It uses automated technology to create and maintain an investment portfolio of low-cost ETFs based on the investor's goals and risk tolerance.
The platform automatically builds and rebalances a portfolio to keep it aligned with your financial objectives, such as saving for retirement or wealth accumulation, all without the need for constant manual management.
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How Does it Work?
Key aspects of E*TRADE Core Portfolio include:
0.30% advisory fees: E*TRADE charges 0.30% for its robo advisor service.
Diversified portfolios: E*TRADE uses a mix of low-cost ETFs across different asset classes such as stocks, bonds, and real estate. This ensures that your portfolio is diversified based on your risk profile and investment horizon.
Automated rebalancing: E*TRADE automatically rebalances your portfolio to maintain the desired asset allocation and risk levels as market conditions change.
Access to human financial planners: Although the service is automated, E*TRADE provides access to certified financial planners who can offer guidance and make adjustments to your portfolio as needed.
E*TRADE Core Portfolio: Features for Passive Investors
E*TRADE Core Portfolio is designed for passive investors who want to grow their wealth with minimal input. The platform delivers value through automation, customization, and human support. Here's how:
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Start With a Goal-Based Portfolio Setup
E*TRADE starts by learning about your financial goals, time horizon, and risk tolerance. Based on your answers, the platform constructs a personalized portfolio of ETFs to suit your needs.
Set your goal: Whether you're saving for retirement, a home, or general growth, E*TRADE builds a portfolio based on your specific financial goals.
Customize your risk profile: You’ll answer a few questions about your investment preferences, and E*TRADE uses this information to allocate your funds in a way that aligns with your objectives.
Automatic updates: If your financial goals change over time, you can easily adjust your risk preferences and the platform will automatically rebalance your portfolio.
This goal-based approach ensures that your portfolio remains aligned with your financial milestones without requiring regular monitoring or manual adjustments.
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Achieve Broad Diversification Using Low-Cost ETFs
E*TRADE Core Portfolio diversifies your investments across a wide array of asset classes using low-cost ETFs. This helps manage risk and ensures more stable growth.
ETF diversification: To balance your risk, your investments are spread across U.S. stocks, international stocks, bonds, and real estate ETFs.
Low-cost options: E*TRADE focuses on low-cost ETFs, which help maximize your returns by minimizing fees.
Global exposure: If domestic markets decline, global and bond ETFs within your portfolio may offer a buffer, helping stabilize overall performance.
By investing in a mix of ETFs, E*TRADE helps minimize risks associated with market fluctuations while keeping costs low.
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Stay on Track with Automatic Rebalancing
E*TRADE ensures that your portfolio stays aligned with your target allocation, even when markets experience volatility. The service automatically rebalances your holdings to maintain the ideal asset mix.
Market volatility management: If stocks outperform bonds, E*TRADE will adjust your portfolio back to the target allocation.
No manual intervention: You don’t need to worry about tracking your portfolio or making adjustments as market conditions shift.
Maintain your risk profile: E*TRADE keeps your portfolio within your desired risk level by rebalancing automatically when needed.
This automatic rebalancing feature helps ensure that your investment strategy remains consistent, regardless of market conditions.
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Tax-Efficient Investment Strategies
E*TRADE Core Portfolio offers tax-efficient strategies by selecting investments that aim to minimize your taxable income. This is especially valuable for investors using taxable accounts.
Tax-efficient ETF selection: E*TRADE chooses low-turnover ETFs to reduce capital gains taxes, helping you retain more of your investment returns.
No advisory fees for tax strategy: While there are no specific tax-loss harvesting strategies, E*TRADE minimizes taxes by selecting tax-efficient ETFs, which is beneficial for long-term investors.
This tax-efficient strategy is ideal for investors who want to keep more of their returns and avoid excessive tax burdens on their taxable accounts.
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Low Minimum Investment Requirement
E*TRADE Core Portfolio has a relatively low minimum investment requirement, making it accessible to a broader range of investors.
$500 minimum: To get started with the service, you only need $500 to open an account, allowing new investors to begin their portfolio management with a modest amount.
Affordable for beginners: This lower barrier to entry means you don’t need a significant initial investment to start using automated portfolio management and benefit from diversification.
This makes E*TRADE Core Portfolio an attractive option for beginner investors who want to start small while building their portfolios over time.
E*TRADE Core Portfolio: Limitations
While E*TRADE Core Portfolio offers great value for many investors, there are certain limitations that could affect some users:
No tax-loss harvesting: Unlike other platforms, E*TRADE does not offer tax-loss harvesting, which is a strategy used to offset taxable gains by selling losing investments.
Limited portfolio customization: E*TRADE Core Portfolio does not allow investors to select or swap individual ETFs. This makes it less suitable for those seeking highly personalized portfolios.
Basic financial planning tools: E*TRADE Core Portfolio doesn’t provide advanced financial planning tools, such as detailed simulations or calculators for complex goals.
No custodial or trust accounts: The service supports individual and retirement accounts but does not offer custodial, trust, or business accounts, limiting its utility for certain types of investors.
Alternatives to E*TRADE Core Portfolio
If you’re looking for a robo advisor with more customization, tax strategies, or advanced tools, here are some great options to consider:
Betterment: Known for its tax-loss harvesting and personalized portfolios, Betterment is ideal for investors seeking tax optimization and goal tracking.
Wealthfront: Offers comprehensive automation with tax-loss harvesting, financial planning tools, and the ability to select from a range of portfolio strategies.
Fidelity Go: Offers no fees for accounts under $25,000 and includes actively managed portfolios above that balance.
Charles Schwab Intelligent Portfolios: This platform includes tax-loss harvesting and a broader range of ETFs, but it requires a $5,000 minimum to get started.
Rovo Advisor | Annual Fees | Minimum Deposit |
|---|---|---|
Wealthfront | 0.25% | $500 |
Betterment | 0.25%
$4 monthly for $0 – $20K balance, 0.25% annually for $20K – $1M balance, 0.15% annually for $1M – $2M balance, 0.10% annually for +$2M balance | $10 |
Acorns | Monthly: $3 – $12
$3 for Bronze, $6 for Silver and $12 for Gold
| $0 |
Schwab Intelligent Portfolios | Up to 0.80%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Schwab Intelligent Portfolio – 0%, Schwab Intelligent Portfolios Premium – One-time planning fee: $300 + Monthly advisory fee: $30, Schwab Wealth Advisory: up to 0.80% | $5,000 |
Vanguard Digital Advisor® | Up to 0.30%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Vanguard Digital Advisor – 0.015%, Vanguard Personal Advisor: 0.03%, Vanguard Personal Advisor Select: up to 0.03%, Vanguard Wealth Management: up to 0.03% | $100 |
E*TRADE Core Portfolios | 0% – 0.35%
0% on stocks and ETFs in self directed brokrage, 0.35% for Core Portfolio Robo Advisor
| $500 |
Merrill Guided Investing | 0.45% – 0.85%
0.45% for Merrill Robo Advisor (Guided Investing), 0.85% for Investing With An Advisor | $1,000 |
