The bottom line: J.P. Morgan Automated Investing is a robo-advisor offering that takes the complexity out of investing. It could be a good choice for existing Chase customers who want to start investing but have no interest in dealing with their investments themselves. But the 0.35% management fee is higher than that of competitors.
J.P. Morgan Automated Investing
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Pros & Cons
App that connects all Chase accounts.
Low investment expense ratios.
ETFs are exclusively from J.P.Morgan.
$500 account minimum.
High management fee for a robo-advisor.
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J.P. Morgan Automated Investing matches investors with a portfolio that fits their risk tolerance and investment goals, then manages the account for an annual management fee of 0.35% of the account balance.
J.P. Morgan Automated Investing's counterpart, Self-Directed Investing, is the do-it-yourself version of the product, suitable for investors who want to trade on their own.
J.P. Morgan Automated Investing is best for:
Investors who want portfolio management.
A simple investing experience.
J.P Morgan Automated Investing at a glance
Account management fee
Investment expense ratios
Average 0.10% to 0.12%. J.P Morgan Automated Investing will reduce its management fee by the portion of expense ratios that is paid to J.P. Morgan or its affiliates.
Account fees (annual, transfer, closing)
$75 account transfer fee. Partial transfers are not supported.
Portfolio mix is well-diversified but lacks exposure to non-market correlated assets like REITs and commodities.
Socially responsible portfolio option
Free on all accounts.
Human advisor option
Financial consultants (Series 7 and 66 licensed) are available Monday - Friday, from 9 a.m. to 6 p.m. Eastern, but they do not offer personalized guidance.
Bank account/cash management account option
Savings account currently offers an interest rate of 0.01%.
Customer support options (includes website transparency)
Where J.P. Morgan Automated Investing shines
Easy portfolio building and management: Building a well-diversified portfolio takes time and research. J.P. Morgan Automated Investing makes it easy with a simple quiz that asks about your risk profile, your goals and your time horizon, then pairs you with one of four potential portfolios. Ranging from conservative to aggressive, the portfolios are built using a mix of exchange-traded funds, giving investors exposure to stocks and bonds.
Portfolio mix: J.P. Morgan Automated Investing features seven asset classes plus cash, and allows up to two ETFs in an asset class. The ETFs are smart-beta funds, which customize the ETF’s holdings rather than passively tracking every investment in an index. Because of that, the company says its smart-beta ETFs are designed to perform better than traditional passive ETFs.
One thing to note: J.P. Morgan Automated Investing only uses J.P. Morgan ETFs — even if there is a similar ETF that is cheaper. For robo-advisors offered by brokerages that have their own funds, this isn’t uncommon, and the average expense ratios of J.P. Morgan Automated Investing's four portfolio choices is competitive, ranging from 0.10% to 0.12%. Similar to other robo-advisors, that expense ratio for the investments used is charged to investors in addition to J.P. Morgan Automated Investing's management fee. But the service reduces its management fee by the portion of the expense ratio that is paid to J.P. Morgan or its affiliates.
Integrated app: If you’re already a Chase customer, you’ll be able to access your J.P. Morgan Automated Investing account on the Chase mobile app. Users can check on their investments in addition to accessing any other Chase accounts, such as credit cards or bank accounts.
Automatic rebalancing: Though not uncommon for robo-advisors, J.P. Morgan Automated Investing does offer automatic rebalancing. J.P. Morgan uses a glide-path strategy to adjust your asset allocation over time, ensuring your portfolio matches your risk tolerance as you get closer to your goal.
» How does J.P. Morgan Automated Investing compare? See our list of the best robo-advisors.
Where J.P. Morgan Automated Investing falls short
Higher-than-average account management fee: An annual 0.35% management fee is on the higher end of the robo-advisor spectrum, especially since J.P. Morgan Automated Investing doesn’t offer any additional services (like tax-loss harvesting) to round out its automated portfolio management offering.
Account minimum: With so many robo-advisors offering $0 account minimums, it feels like a service has to go the extra mile to justify a $500 minimum (and a required $250 maintained balance), and J.P. Morgan Automated Investing simply doesn’t.
Limited tools and access to research: J.P. Morgan Automated Investing has a simulation tool that illustrates the likelihood of various investment returns over time, but aside from that, does not offer much to help investors understand their assets or plan for their financial goals. The Chase website does have a Learning & Insights section with educational articles to help beginners understand investing.
Is J.P. Morgan Automated Investing right for you?
If you’re looking for investment management and nothing more, J.P. Morgan Automated Investing is a decent option — especially if you’re already a Chase customer. If investing feels particularly daunting to you, J.P. Morgan Automated Investing takes almost all the leg work out of it and lets you invest without making the intimidating decisions that DIY investing might require.
Disclosure: The author held no positions in the aforementioned securities at the time of publication.
INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE