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Ally Invest Managed Portfolios Review 2018

Advisors, Investing

Ally Invest Managed Portfolios, the rebranding of robo-advisor TradeKing Advisors after its 2016 acquisition by Ally Financial, features a range of account types, 24/7 customer service and seamless integration on Ally.com, the online-only bank.

With a $2,500 minimum investment, the service creates and maintains a diversified portfolio of exchange-traded funds with an annual management fee of 0.30% — a competitive price, but slightly higher than some competitors.

The service has new features like Goal Tracker, a wealth-forecasting tool that simulates a range of possible outcomes based on various market returns. Existing Ally Bank clients can view their checking and savings accounts, Ally Invest brokerage account and managed account within one dashboard.


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Quick Facts

  • Management fee: 0.30%
  • Account minimum: $2,500
Get started on Ally Invest Advisors' secure site
Get started on Ally Invest Advisors' secure site


Ally Invest Managed Portfolios is best for:

  • Existing Ally banking or brokerage customers
  • Hands-off investors
  • Automatic rebalancing

Ally Invest Managed Portfolios at a glance

Overall

Account minimum$2,500
Account management fee0.30%
Investment expense ratiosExpense ratios average 0.09%
Account fees (annual, transfer, closing)$50 IRA closing fee; no fee to close brokerage account
Portfolio mixPortfolios contain an average of nine ETFs.
Accounts supported
  • Individual and joint nonretirement accounts
  • Roth, traditional, SIMPLE, SEP and rollover IRAs
  • Trusts
Tax strategyNot offered
Automatic rebalancingFree on all accounts
Customer support optionsPhone, email and live chat support 24/7.

Where Ally Invest Managed Portfolios shines

Investments:  As at many other robo-advisors, Ally Invest Managed Portfolios investment portfolios are constructed of ETFs. Each portfolio contains around nine funds, with an average expense ratio of 0.09%. Unlike many other brokers, Ally does not have proprietary funds and so does not use its own funds in its managed portfolios.

New customers are directed to an assessment, with questions that determine an investor’s risk tolerance and goals and help the firm select an investment strategy for the client. The questions gauge how comfortable investors are with large portfolio fluctuations and what their investment time horizon is. The assessment then suggests a portfolio, with details about the asset allocation.

Ally Invest Managed Portfolios are monitored and automatically rebalanced as needed.

Integration with Ally: Current Ally account holders — both of the bank and brokerage arms — can open an Ally Invest Managed Portfolio account and easily view all of their accounts in one place. The platform is also mobile-responsive and consistent across devices. You cannot, however, combine self-directed and managed investment accounts, and Ally Invest Managed Portfolios’ minimum balance requirements are separate from any other assets held at Ally.

Customer Service: Although robo-advisors are by definition hands-free investing, it’s comforting to know human help is a phone-call away if you’ve got a midnight question about creating your account: Ally Invest Managed Portfolios includes 24/7 customer support.

Where Ally Invest Managed Portfolios falls short

Management fee: Customer pay a 0.30% annual fee. That’s slightly higher than independent robo-advisors typically charge — both Betterment and Wealthfront have set their fee at 0.25% — but roughly in line with robo-advisory offerings from fellow online brokers.

Tax-loss harvesting: Or rather, the lack thereof. The company doesn’t offer this feature, which is standard at many robo-advisors, including several that charge the same management fee as Ally Invest Advisors.

Is Ally Invest Managed Portfolios right for you?

That depends a great deal on what kind of account you’re interested in and which features matter most to you. The service is best suited to retirement accounts or loyal Ally customers who want to house a managed account, a trading account and their bank accounts under one roof. The lack of tax-loss harvesting will be an issue for investors with taxable brokerage accounts.

 

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