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E*TRADE serves all types of investors. See if the brokerage is right for you.
E*TRADE; Gilbert Espinoza/Business Insider
Bottom line: E*TRADE Core Portfolios account is best for long-term-focused, hands-off investors who have a time horizon of at least one year. However, the account isn’t a good option for those in search of one-on-one financial advisor consultations or features like tax-loss harvesting.
Overall rating
FeatureInsider rating (out of 5)Fees3.75Investment selection3.75Access4.40Ethics3.00Customer service4.00Overall score3.77
Is E*TRADE Core Portfolios right for you?
Core Portfolios is online brokerage E*TRADE’s automated investing account. This account is best for hands-off, or passive, investors looking for personalized portfolio management. Its $500 minimum requirement is reasonable but higher than other popular automate accounts (e.g., SoFi Automated Investing, Ellevest, and Betterment Investing) that require $0 or $1 to get started.
E*TRADE’s three other managed account options — Blend Portfolios, Fixed Income Portfolios, and Morgan Stanley Financial Advisors —cater to investors interested in working with financial advisors. The Core Portfolios account draws from the combination of automated technology and oversight from E*TRADE experts.
You can set up Core Portfolios on iOS or Android devices.
E*TRADE Core Portfolios vs. Betterment
E*TRADE
Betterment
Min. Investment
$500
Min. Investment
$0 or $100,000, depending on plan
Fees
0.30%
Fees
0.25% (0.40% for premium plan)
Investment choices
ETFs
Investment choices
ETFs
E*TRADE Core PortfoliosBetterment Investing
E*TRADE Core Portfolios and Betterment both cater to hands-off investors strictly in search of automated portfolio management. Both support a variety of account types, and both platforms offer multiple portfolio options, including socially responsible portfolios.
But Betterment is the best option for low-cost automated advice. You can get started with a $0 minimum and 0.25% advisory fee, although you’ll have to pay a bit extra for financial advisor consultations (unless you have the premium account).
E*TRADE Core Portfolios vs. Merrill Guided Investing
E*TRADE
Merrill
Min. Investment
$500
Min. Investment
$1,000
Fees
0.30%
Fees
0.45%
Investment choices
ETFs
Investment choices
ETFs and mutual funds
E*TRADE Core PortfoliosMerrill Guided Investing
E*TRADE and Merrill Edge’s automated accounts are not only ideal for hands-off investing through regular taxable accounts, but they also suit investors interested in access to a range of other accounts (e.g., brokerage, education savings plans, or custodial accounts).
When it comes to fees and account minimums, though, E*TRADE has Merrill Guided Investing beat. Merill Edge offers more investment choices, though.
Ways to invest with E*TRADE Core Portfolios
Automated portfolios
The Core Portfolios account is best for passive investors in search of ongoing portfolio management. For a $500 minimum and 0.30% annual fee, E*TRADE invests your money into a diversified blend of ETFs that aligns with your risk tolerance, timeline, and investment objectives.
Some automated advisors like Betterment and Wealthfront offer tax-loss harvesting, but E*TRADE doesn’t. Instead, it employs a tax-sensitive strategy that relies on municipal bond ETFs to reduce taxes.
Individual, joint, and custodial brokerage accounts are eligible for Core Portfolios. On the retirement side, you can automate traditional IRAs, Roth IRAs, and SEP IRAs. Plus, E*TRADE accepts rollover IRAs.
Core Portfolios also gives you the option to set up recurring automatic deposits, but you can manually contribute on your own schedule if you prefer.
Investment types
The E*TRADE Core Portfolios account uses one type of investment: ETFs. The brokerage uses asset classes that strive to generate high returns over the long haul (usually a minimum of three years), and it gives you the option of socially responsible ETFs or smart beta ETFs (smart beta ETFs are funds that aim to outperform the stock market).
In addition, E*TRADE says it selects ETFs by analyzing things like historical performance, liquidity, tracking error, and expenses.
Account setup and user interface
The account setup process is pretty simple with Core Portfolios. E*TRADE asks you a series of questions about your goals and preferences, and its algorithm creates a personalized ETF portfolio that aligns with your risk tolerance.
The first question — which asks about your investing goals — gives you three options: simply build wealth, save for retirement, or target a specific goal (you can adjust your goals, investment timeline, or risk level at any time). Core Portfolios then asks how much you plan to invest initially.
To learn more about your risk level, E*TRADE provides a graph showing the hypothetical returns of a $100,000 investment.
E*TRADE
As indicated above, the best case one-year returns for a $100,000 initial investment would be roughly $124,000.
E*TRADE: Is it trustworthy?
E*TRADE has an F rating with the Better Business Bureau. Ratings — which range from A+ to F — reflect the bureau’s opinion of how well a company interacts with its customers, so this is lowest score a company can receive. Despite its F rating, Personal Finance Insider rates it a 3 out of 5 in ethics since it is in good legal standing and doesn’t have any scandals.
The bureau also considers things like time in business, type of business, advertising issues, and licensing and government actions. However, its ratings don’t guarantee a business will be reliable or perform well, so it’s wise to do your owe due diligence as well.
E*TRADE has closed more than 220 complaints in the last 12 months. It currently has 14 unresolved complaints, according to its BBB profile.
E*TRADE Core Portfolios — Frequently asked questions (FAQ)
What is E*TRADE Core Portfolios?
Core Portfolios is E*TRADE’s automated investing account. As with most robo-advisors, the platform creates a personalized, self-managing portfolio for you after you answer a short questionnaire about your investing preferences and goals.
Can you withdraw from E*TRADE Core Portfolios?
Yes. You can easily take money out of your account by selecting “Add/remove funds” on the platform and removing your desired amount.
Does E*TRADE offer tax-loss harvesting?
No. The platform doesn’t offer this feature at this time.