Update: Capital One Advisors Managed Portfolios, which has been sold to E*Trade, is not currently registered and is not filing reports with the SEC or any state.
Capital One Advisors Managed Portfolios is a robo-advisor service that specializes in creating investment portfolios that reflect an investor’s goals and risk tolerance. It bills itself as a “digital portfolio with a human touch,” and you have access to a financial advisor throughout the investing process. Capital One Advisors Managed Portfolios prides itself on offering a personalized investing experience.
With Capital One Advisors Managed Portfolios, you work digitally with a financial advisor and then you let the service take the reins of your investment portfolio. This service is targeted at those who have little experience with investing.
Current Capital One customers; First-time investors with a complex financial background; Potential investors who value a human touch
Capital One's management fee of 0.90% and minimum balance of $25,000 are higher than the fees and minimums of other robo-advisor services.
Pricing: How Much Does Capital One Advisors Managed Portfolios Cost?
|Option Name||Management Fee||Minimum Balance||Features|
|Capital One Advisors Managed Portfolios||0.90%||$25,000||Comes with access to live advisor, automatic portfolio rebalancing, personalized investment portfolios|
Capital One Advisors Managed Portfolios
The management fee to work with Capital One Advisors Managed Portfolios is 0.90% of assets under management. This fee is higher than the average robo-advisor, whose fees are generally less than 0.50%. However, the service is still less expensive than a traditional advisor firm, which generally has management fees between 1% and 2%.
Rolled into the management fee is access to a financial advisor. By working with professionals, you are able to create an investment portfolio that is catered to you based on your financial situation and comfort level. You’re able to have a hands-off investment experience while still controlling your investments in the long-term.
The account balance minimum of $25,000 is also higher than most other robo-services. The high minimum balance and relatively high fees in the robo-advisor sphere naturally mean that this service isn’t accessible for everyone.
Capital One Advisors Managed Portfolios’ Investing Strategy
Capital One Advisors Managed Portfolios offers a range of accounts: individual and joint taxable accounts, traditional and Roth IRAs, education savings accounts (ESA) and custodial accounts.
Portfolios managed with Capital One Advisors Managed Portfolios are invested exclusively in exchange-traded funds (ETFs). ETFs are a popular way to invest because of their low annual fees and diverse range of funds to choose from. Using ETFs can help minimize risk and give you a stable portfolio.
Your portfolio with Capital One Advisors Managed Portfolios is diversified among different asset classes -- stocks, bonds and cash. Diversification helps mitigate losses if the market shifts dramatically – if you have drop in one area, you may have gains elsewhere. The Capital One Advisors Investment Committee regularly reviews portfolio models to ensure that portfolios are balanced and adapt to market changes.
With your portfolio curated for you based on your goals and risk tolerance, Capital One Advisors Managed Portfolios offers a hands-off approach to investing. You can access your portfolio at any time online. You won’t have to alter or place trades yourself, with the service doing it for you. Your portfolio is also automatically rebalanced to maintain your ideal investment portfolio and keep you on track with your goals.
Capital One Advisors Managed Portfolios brings together the power of the digital product and financial advisor expertise, giving you the convenience of a robo-advisor with a more personal touch. You speak with an advisor to guarantee that your investment portfolio fits your unique financial situation. Your portfolio is automatically managed and rebalanced. With these features, you get a personal experience without much work or time on your end.
Who Capital One Advisors Managed Portfolios Is For
Capital One is already a big name in banking. If you’re currently a banking customer and want to move into investing, it’s easy to connect your Capital One 360 and Capital One Advisors Managed Portfolios together. You’ll be able to transfer money between accounts automatically and view your balances on both websites. Plus, you already have experience working with the company and don’t have to start new with another service.
With a high management fee and account balance minimum, Capital One Advisors Managed Portfolios may not be ideal if you’re just starting to invest. But if you have invested before and have a complex financial background, Capital One could be a good fit.
If you’re a long-term investor in general, Capital One Advisors Managed Portfolios’ personalized portfolios and access to financial advisors are useful. To make an investment portfolio, advisors consider your financial situation and give advice that’s unique to you. You’ll be set up for long-term investing with an established company that offers conflict-free advice.
How Capital One Advisors Managed Portfolios Works
To start investing with Capital One Advisors Managed Portfolios, you’ll need to deposit $25,000. Though this is a steep minimum, you will have access to an advisor service for your long-term investing needs.
According to Capital One Advisors Managed Portfolios, your investment experience is guided by four qualities: personalization, partnership, planning and transparency. A long-term investing plan is created to cater to you and your financial aspirations. You build a relationship with a financial advisor and receive personalized advice. You work with the advisor to plan for the future and solve problems should unexpected situations come up. Above all, Capital One Advisors Managed Portfolios aims to be transparent and give you clear, honest information regarding investments.
To invest with Capital One Advisors Managed Portfolios, you start by talking to a certified financial advisor over the phone. You provide some general information: financial goals, income level, expenses and family or dependent information. Sharing information about your assets and liabilities is also helpful. This all gives your advisor an idea of your general financial picture and investment approach, like your risk level. This conversation creates the foundation for your investment plan, with your goals guiding the way.
With this information, your financial advisor provides a range of portfolio options for your situation. The advisor looks at your personal and financial background, as well as your investment approach, and builds plans that align with your goals and risk tolerance.
These options are explained in full detail, giving you a chance to consider which one best fits your situation. Pricing fluctuates with each plan but you’re able to look over the portfolio options before committing to one. Your advisor is also there to answer any questions.
When you choose a portfolio you’re comfortable with, you work together to put the plan in motion. Then you can fund your account and start investing.
What's the Catch?
Capital One offers a range of services outside of its Capital One Advisors Managed Portfolios service. This is just a small part of its overall online investing service. But because of all the available services, Capital One’s website is hard to navigate. It becomes unclear what information pertains to which service. There are also no specific details provided on important information such as ETF fees or whether there are features like tax-loss harvesting.
In addition, with a high management fee and account minimum, Capital One Advisors Managed Portfolios service isn’t accessible to everyone. Though it’s geared toward beginning investors, that can be a lot of money for an investor to put in the market at once. And with other advisors offering lower fees, as well as live advisors and diversified investment portfolios, Capital One Advisors Managed Portfolios doesn’t quite stand out.
And though your portfolio is created with your financial goals in mind, there is no clear way of tracking your progress toward your goals. Other robo-advisor services offer online tools to track goals and stay on course.
Competition: How Capital One Advisors Managed Portfolios Stacks Up
When compared to other robo-advisors, Capital One charges higher fees than its competitors.
Personal Capital is another service that offers access to a live advisor. Its account minimum is higher at $100,000, but its management fee is slightly lower at 0.89% for balances under $1 million. The higher balance you have, the lower your management fee, with balances over $10 million having a fee of 0.49%. This could save you some money if you’re planning on investing large amounts and well into the future.
Personal Capital also has automatic portfolio rebalancing, as well as tax-loss harvesting. Tax-loss harvesting helps minimize the taxes you’ll pay on your gains. You get access to a financial advisor, who is available over phone, email or live chat. If your balance is over $200,000, you have access to two dedicated financial advisors. With many free financial management tools as well, Personal Capital gives you a chance to take control of your finances for the long-term.
One of the big names in the robo-advisor field, Betterment, offers lower fees and account minimums than Capital One Advisors Managed Portfolios. It has no account minimum for their Betterment Digital account, which is managed at 0.25%. For Betterment Plus and Premium accounts, the fees are between 0.40% and 0.50%, with a required account minimum of $100,000. Though that minimum is higher than at Capital One Advisors Managed Portfolios, the management fees are lower while still giving you access to financial advisors. In addition, there’s tax-loss harvesting on all taxable accounts.
|Microsavings Comparison||Fees||Min. Balance||Human Advisor|
|0.49% - 0.89%||$100,000||Yes|
|0.25% - 0.50%||$0||Yes|
Capital One values a personal touch, but it isn’t the only one with human advisors. With other services offering live advisors at lower prices and with more services, they edge Capital One Advisors Managed Portfolios out. But with Capital One Advisors Managed Portfolios, you’re connected with an advisor at every step of the way, from creating your portfolio to putting it in action. This close relationship is long-term and personal.
Bottom Line: Should You Use Capital One Advisors Managed Portfolios?
Capital One Advisors Managed Portfolios offers personalized investment portfolios and always keeps your needs in mind. The hands-off approach means you won’t have to worry about trading and rebalancing yourself. The service does it for you. By being connected to a financial advisor, you can build a relationship to ensure your personal goals are on course.
However, Capital One Advisors Managed Portfolios isn’t for everyone. Though the robo-advisor says it’s a fit for beginners, high fees and a significant account minimum make it hard for everyone to invest. And compared to other robo-advisors, Capital One Advisor Managed Portfolios’ information is less transparent. But once you commit to Capital One Advisors Managed Portfolios, you can at least know that you are you will receive investing advice and support for the long haul.
Tips for Finding an Advisor
- Sometimes, a robo-advisor with occasional human guidance doesn’t quite make the cut. If that’s the case for you, let us help you find a traditional financial advisor. With SmartAdvisor, you’ll take a short quiz and we’ll do the rest. We’ll pair you with three advisors in your area who fit your preferences and financial needs. Then we’ll put you in touch with these advisors to help you find the right one.
- When choosing a financial advisor, keep your goals and needs in mind. Are you putting a child through college while also saving for a new home? Find an advisor who can help you with that. It helps to ask advisors questions about their credentials and experience to better determine whether they’re right for you.