Wednesday, August 4

Axos Invest Managed Portfolios review: Automated ETF portfolios with a $500 minimum


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Is Axos Invest Managed Portfolios right for you?

Axos Financial’s automated investment account, Axos Invest Managed Portfolios, is best for hands-off and long-term focused investors in search of professionally managed and personalized ETF portfolios.

Founded in 2009 as WiseBanyan, Inc. the automated advisor became Axos Invest in February 2019 after Axos Financial, LLC acquired it. It supports US investors in all 50 states.

The automated account also gives you access to features like quick deposits, automatic portfolio rebalancing, tax-loss harvesting, IRA automation, and more.

You can access your investments on iOS or Android devices.

Not sure if Axos Invest is right for you? Keep reading to see how it ranks against other popular automated advisors.

How does Axos Invest Managed Portfolios compare?

Axos Invest Managed Portfolios, Betterment, and Fidelity Go (Fidelity’s automated account) are all great options for investors in search of ongoing portfolio management. But the three platforms differ when it comes to fees, features, and investment choices.

If you’re looking to start investing without any minimum requirements, Betterment and Fidelity are the better choices. Both offer $0 minimums, and you can even skip out on advisory fees if your balance is less than $10,000 at Fidelity.

Axos Invest has a higher minimum requirement, but unlike Fidelity, it offers tax-loss harvesting, and its 0.24% annual fee applies to all account sizes (you’ll have to pay 0.35% per year at Fidelity Go if you have a minimum balance of $50,000).

Keep reading to see if Axos Invest Managed Portfolios is right for you.

Ways to invest with Axos Invest Managed Portfolios

Automated portfolios

You need a minimum of $500 to set up a personalized ETF portfolio with Axos Invest. The account also carries a 0.24% annual fee, but you can invest toward several different goals (eg, retirement, emergency fund, building wealth, or homebuying) and edit or delete them at any time.

Axos Invest also offers the following account features:

  • Quick deposit: Deposits with some investment apps can take 1-3 days, but this feature lets you invest any deposits on the same or next trading day.
  • Auto deposit scheduler: This feature lets you determine the exact day additional funds deposit into your account.
  • Tax-loss harvesting: This tax-advantaged tool aims to reduce your annual tax bill by selling investments that have incurred losses and replacing them with similar securities.
  • Automatic portfolio rebalancing: You don’t have to do the work to keep your portfolio intact. Axos Invest keeps it aligned with the original target allocation for you.
  • IRA automation: Whether you’re planning to use a traditional or Roth IRA, Axos Invest automatically manages the retirement account for you.

As for account types, Axos Invest supports individual investment accounts, traditional IRAs, Roth IRAs, and SEP IRAs.

Account types and investment choices

Axos Invest Managed Portfolios uses ETFs from more than 30 different asset classes (asset classes are investments that have similar market characteristics). According to its website, it gets these funds from a database of more than 1,400 ETFs.

When selecting funds, Axos Invest says it also looks at factors like historical performance, investment focus, and operational efficiency. Though it supports short-term goals, the company mainly uses a buy-and-hold strategy that strives to maximize returns over the long haul.

It builds portfolios that align with each investor’s risk tolerance, time horizon, and investment return goals.

Is Axos Invest trustworthy?

The Better Business Bureau has given Axos Invest an A- rating to reflect its views of how well the company interacts with its customers. BBB ratings range from A+ to F, so Axos Invest exhibits a high level of customer trustworthiness.

When assigning ratings, the bureau also considers type of business, time in business, customer complaint history, licensing and government actions, and advertising issues. But keep in mind that its ratings don’t guarantee that a company will be reliable or perform well.

As you weight your options, it’s equally important that you do your own due diligence in addition to the BBB’s findings. Axos Invest has closed three complaints in the past 12 months, according to BBB data.



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