Axos Managed Portfolios Review 2024: Pros, Cons and How It Compares
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Our Take
4.6
Reviewed in: Oct. 2023
Period considered: Aug. - Oct. 2023
The bottom line:
Unpaid non-client promotion
Pros & Cons
Pros
Low portfolio management fee.
Customizable portfolios.
Goal-based financial planning tools.
Cons
Limited account selection.
$500 account minimum.
Compare to Other Advisors
Fees Varies by Advisor (free initial consultation) | Fees 0% management fee | Fees 0.25% management fee |
Account minimum $150,000 | Account minimum $0 | Account minimum $500 |
Promotion 3-Month Satisfaction Guarantee | Promotion 1% match on rollovers and contributions Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits. | Promotion Get a $50 customer bonus when you fund your first taxable investment account |
Learn more on Zoe Financial's website | Learn more on SoFi Invest's website | Learn more on Wealthfront's website |
AD Paid non-client promotion | AD Paid non-client promotion | AD Paid non-client promotion |
NerdWallet doesn’t invest its money with this provider, but they are our referral partner – so we get paid only if you click through and take a qualifying action (such as open an account with or provide your contact information to the provider). Most importantly, our reviews and ratings are objective and are never impacted by our partnerships. Our opinions are our own. Here is a list of our partners and here’s how we make money.
Get more smart money moves — straight to your inbox
Become a NerdWallet member, and we’ll send you tailored articles we think you’ll love.
Full Review
Where Axos Managed Portfolios investing shines
Inexpensive management: Axos Managed Portfolios charges a 0.24% management fee, which is relatively low, and offers more portfolio customization than most robo-advisors offer.
Customizable investments: The company asks each customer a few questions, then creates a portfolio of exchange-traded funds, weighted to reflect the amount of risk the investor is willing to accept.
Tax-loss harvesting: Tax-loss harvesting, an investment strategy that can help reduce taxes on your investment gains, is available to all Axos Managed Portfolios customers.
Where Axos Managed Portfolios falls short
Account selection: Axos Managed Portfolios customers can open only individual taxable accounts or traditional and Roth IRAs. Other robos and brokers also offer joint taxable and custodial accounts.
Axos Managed Portfolios is best for:
Beginner investors.
Goal-based investing.
Investors who want to customize their portfolios.
Axos Managed Portfolios at a glance
Reviewed: Oct. 2023
Period considered: Aug. - Oct. 2023
Account minimum |
|
Account management fee | 0.24%. |
Investment expense ratios | Average 0.12%. |
Account fees |
|
Portfolio mix | Portfolio mix is generally well-diversified with some exposure to international bonds. Portfolios are highly customizable for a robo-advisor. |
Socially responsible portfolio option | Axos offers an ESG model, and its Portfolio Plus feature lets you invest in particular sectors, such as Digital Security, or causes, such as companies with women in leadership roles. |
Accounts supported | • Individual taxable accounts. • Roth and traditional IRAs. |
Tax strategy | Tax-loss harvesting included on all accounts. |
Automatic rebalancing | Automatic and free on all accounts. |
Human advisor option | None. |
Savings account/cash management account option | Its affiliate company, Axos Bank, offers accounts with competitive APYs. |
Customer support options (includes how easy it is to find key details on the website) | Customer support is available Monday through Friday, 8 a.m. to 4 p.m. Pacific time, by phone and email. |
More details about Axos Managed Portfolios' ratings
Account minimum: 4 out of 5 stars
Axos doesn’t have an account minimum — you can open an account with any amount. However, trading can’t begin until your account balance is at $500. If your balance is below $500, you will pay a fee of $1 per month. Several competing robo-advisors have a $0 minimum and don’t charge for a $0 balance.
Account management fee: 5 out of 5 stars
A big draw of robo-advisors is that they offer financial advice and management for much less than a human financial advisor charges; about 0.25% to 0.5% of assets managed is typical. Axos squeaks under that range with its 0.24% management fee on accounts over $500. Yes, that 0.01% doesn’t make too much of a difference, but any money you don’t spend on management fees is money you get to keep.
Investment expense ratios: 4 out of 5 stars
Expense ratios are annual fees expressed as a percentage of your investment in a fund. The ratio varies depending on the robo-advisor. Axos Managed Portfolios has an average expense ratio of 0.12%.
Account fees: 2 out of 5 stars
Axos Managed Portfolios charges a $100 automated transfer out fee and a $60 per-plan termination fee on qualified accounts.
Portfolio mix: 3.5 out of 5 stars
Like many robo-advisors, Axos Managed Portfolios’ investment philosophy is based on modern portfolio theory. The company automatically creates a portfolio for each client by asking a few questions. Those questions lead to a “risk score” that helps build a recommended portfolio of exchange-traded funds, weighted to reflect the amount of risk the investor is willing to accept. The company says clients can increase or decrease their risk scores, and the investment recommendations will automatically update to reflect the change.
Axos Core Portfolios are similar to those of other robo-advisors. Funds cover U.S., international and emerging market equities; U.S. government and corporate bonds; short-term high-yield bonds; Treasury inflation-protected securities; and real estate investment trusts, or REITs. Many of the ETFs are from Vanguard and iShares.
Socially responsible portfolio options: 5 out of 5 stars
Investors who want to customize their portfolios can use the Portfolio Plus feature at no extra cost. Clients can add or remove 32 investment types and add investments by sector, such as digital security, consumer staples and socially minded companies.
And while the level of added customization is a great middle ground for those investors who want more control than they'd get with a traditional robo-advisor but don’t want to choose all their investments themselves, the company says that portfolios constructed from the additional investments available through Portfolio Plus are not recommendations of Axos.
Accounts supported: 3 out of 5 stars
Axos Managed Portfolios customers can open only individual taxable accounts or traditional and Roth IRAs. You can’t, for example, open a joint taxable account with your spouse, as you can at other robo-advisors and brokers, and you can't open a trust or a custodial account for your children.
Tax strategy: 4 out of 5 stars
Tax-loss harvesting is an investment strategy that involves selling losing investments to help reduce taxes on your investment gains. It’s available to all Axos Managed Portfolios customers.
Automatic rebalancing: 5 out of 5 stars
Axos Managed Portfolios monitors your portfolio and makes adjustments to keep your asset allocation aligned with your original choices. Customers receive automatic rebalancing for no extra charge.
Human advisor option: 3 out of 5 stars
Some robo-advisors offer human support, sometimes for an added fee. Axos Invest clients can connect with a licensed relationship manager, some of whom have Series 7 and 66 certifications, Monday through Friday, 8 a.m. to 4 p.m. Pacific time, by phone, email, or secure message through the company's web or mobile platforms
Savings account/cash management options: 5 out of 5 stars
Axos Managed Portfolios offers a Rewards Checking account with Axos Bank, its affiliate company, that offers 3.3% APY.
Customer support options: 4 out of 5 stars
Customers have access to phone and email support Monday through Friday, 8 a.m. to 4 p.m. Pacific time.
Other features you should know
Axos Managed Portfolios takes a goal-based approach to help investors create buckets for their money, called "milestones." Users tell the service their goal, time horizon, income and net worth, and Axos will calculate a recommendation for how much should be invested toward that milestone. Users can also adjust the recommended asset allocation for each milestone with a bar slider.
Is Axos Managed Portfolios right for you?
Axos Managed Portfolios is a solid choice for investors looking for low-cost management as well as some goal-based guidance. For investors who want more choice than a bare-bones robo-advisor offers, Axos makes it easy to dip your toes into choosing your own investments. Of course, as soon as you start choosing your own investments, you take on some of the responsibility that a robo-advisor would otherwise assume for you. Be sure to do your due diligence with any investments you pick.
How do we review robo-advisors?
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. robo-advisors. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. Our highest priority is maintaining editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across 16 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating robo-advisors and our process, read our full methodology.
