Axos Managed Portfolios Review 2024: Pros, Cons and How It Compares
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Our Take
4.5
Reviewed in: Oct. 2024
Period considered: Aug. - Oct. 2024
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 0.25% management fee | Fees 0.25% management fee | Fees 0.25% with a balance over $20K or qualifying recurring deposit. Otherwise, $4/month. |
Account minimum $50 | Account minimum $500 | Account minimum $0 $10 to start |
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 | Promotion None no promotion available at this time |
Learn more on SoFi Invest's website | Learn more on Wealthfront's website | Learn more on Betterment's website |
AD Paid non-client promotion | AD Paid non-client promotion | AD Paid non-client promotion |
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Full Review
In this review of Axos Managed Portfolios
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.
Customer support hours: Customers can reach Axos' support through phone and email Monday through Friday, 8 a.m. to 4 p.m. Pacific Time, but that may not work for everyone.
Alternatives to consider:
For more types of accounts: Vanguard Digital Advisor, Fidelity Go, and Merrill Guided Investing.
For expanded customer service hours: E*Trade Core Portfolios and Schwab Intelligent Portfolios.
What type of investor should choose Axos Managed Portfolios?
Beginner investors.
Goal-based investors.
Investors who want to customize their portfolios.
What the Nerds think 🤓
June Sham, lead investing writer
"Axos is competitive for its account management fee, which is lower than some — but not all — other robo-advisors. That's especially impressive given the amount of portfolio customization available. But that lower price may account for less hands-on advice and more limited customer support hours, which may be a drawback for investors who want personalized advice and assistance."
Axos Managed Portfolios at a glance
Reviewed: Oct. 2024
Period considered: Aug. - Oct. 2024
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 |
|
Tax strategy | Tax-loss harvesting included on all accounts. |
Automatic rebalancing | Automatic and free on all accounts. |
Human advisor option | Access to licensed relationship managers, some of whom have Series 7 and 66 certifications, via phone, email or in-app messaging. |
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. |
How to sign up for an Axos Managed Portfolios account
You can sign up for an Axos Managed Portfolios account through the company's website. You can select whether you are signing up as a new customer with Axos or an existing one. After providing your personal information, you can then start to create a portfolio based on your financial goals, risk preference and time horizon.
How much does Axos Managed Portfolios cost?
Account management fee
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.
Account minimum
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.
Investment expense ratios
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
Axos Managed Portfolios charges a $100 fee to transfer all of the assets out of your account (there's no fee for partial transfers) and a $60 per-plan termination fee on qualified accounts.
Axos Managed Portfolios portfolio selection
Portfolio mix
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
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.
Other key Axos Managed Portfolios features
Tax strategy
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 with taxable accounts.
Automatic rebalancing
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.
Savings account/cash management options
Axos Managed Portfolios offers a Rewards Checking account with Axos Bank, its affiliate company, that offers 3.3% APY.
Good to know about Axos Managed Portfolios
No human advisors
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
Limited customer support hours
Customers have access to phone and email support Monday through Friday, 8 a.m. to 4 p.m. Pacific time.
Fewer accounts supported
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.
Is Axos Managed Portfolios safe?
Brokerage accounts with Axos Managed Portfolios come with standard SIPC coverage of up to $500,000 per client. This includes a cash limit of $250,000. However, this doesn't cover market volatility, so any losses related to stock market activity are not covered.
Is Axos Managed Portfolios worth it?
Axos Managed Portfolios is a solid choice for investors looking for low-cost management, especially alongside portfolio customization. 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.
