J.P. Morgan Automated Investing Review: Pros, Cons and How It Compares
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Our Take
4.1
Reviewed in: Oct. 2022
Period considered: Aug. - Oct. 2022
The bottom line:
Unpaid non-client promotion
Pros & Cons
Pros
Easy-to-use platform.
App that connects all Chase accounts.
Low investment expense ratios.
Smart-beta ETFs.
Cons
ETFs are exclusively from J.P.Morgan.
$500 account minimum.
High management fee for a robo-advisor.
Compare to Similar Brokers
Fees Varies by Advisor (free initial consultation) | Fees 0% management fee | Fees 0.25% management fee | Fees 0.25% with a balance over $20K or qualifying recurring deposit. Otherwise, $4/month. |
Account minimum $150,000 | Account minimum $0 | Account minimum $500 | Account minimum $0 $10 to start |
Promotion 3-Month Satisfaction Guarantee | Promotion None no promotion available at this time | 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 Zoe Financial's website | 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 | AD Paid non-client promotion |
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Full Review
Where J.P. Morgan Automated Investing shines
Easy portfolio building: J.P. Morgan Automated Investing makes it easy to build a well-diversified portfolio with a quiz that asks about your risk profile, your goals and your time horizon, then pairs you with one of four potential portfolios.
Portfolio mix: J.P. Morgan Automated Investing features four asset classes plus cash, and allows up to two ETFs in an asset class.
Integrated app: Chase customers can access their J.P. Morgan Automated Investing account on the Chase mobile app.
Where J.P. Morgan Automated Investing falls short
Account management fee: An annual 0.35% management fee is on the higher end of the robo-advisor spectrum.
Account minimum: J.P. Morgan Automated Investing has a $500 minimum; many competitors have lower or no minimums.
Limited tools: 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.
J.P. Morgan Automated Investing is best for
Mobile users.
Investors who want portfolio management.
A simple investing experience.
J.P. Morgan Automated Investing at a glance
Reviewed: Oct. 2022
Period considered: Aug. - Oct. 2022
Account minimum | $500. |
Account management fee | 0.35%. |
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 | Portfolio mix is well-diversified in stocks, bonds, and cash. However, J.P. Morgan Automated Investing lacks exposure to non-market correlated assets like REITs and commodities. |
Socially responsible portfolio option | None. But you can exclude certain ETFs. |
Accounts supported |
|
Tax strategy | Not available. |
Automatic rebalancing | Free on all accounts. |
Human advisor option | Financial consultants (Series 7 and 63 licensed) are available Monday to Friday, from 8 a.m. to 9 p.m. Eastern and Saturday 9 a.m. to 5 p.m. Eastern, but they do not offer personalized guidance. |
Bank account/cash management account option | Savings account offers an interest rate of 0.01% as of Oct. 25, 2022. |
Customer support options (includes how easy it is to find key details on the website) |
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More details about J.P. Morgan Automated Investing's ratings
Account minimum: 4 out of 5 stars
J.P. Morgan Automated Investing has a $500 account minimum. With so many robo-advisors offering $0 account minimums, it feels like a service has to go the extra mile to justify that $500 minimum (and a required $250 maintained balance), and J.P. Morgan Automated Investing simply doesn’t.
Account management fee: 3 out of 5 stars
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. This is on the high side, especially since the robo doesn’t offer any additional services (such as tax-loss harvesting) to round out its automated portfolio management offering.
Investment expense ratios: 4 out of 5 stars
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.
Account fees: 3 out of 5 stars
Customers can expect to pay a $75 account full transfer fee. J.P. Morgan Automated Investing doesn’t support partial transfers.
Portfolio mix: 4 out of 5 stars
Building a well-diversified portfolio takes time and research. J.P. Morgan Automated Investing helps you out by asking about your risk tolerance, goals and time horizon, then pairing 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, cash, and bonds. However, customers don't have access to non-market correlated assets such as real estate investment trusts and commodities.
Some of J.P. Morgan's ETFs use 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. That said, when choosing investments, customers can include 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.
Socially responsible portfolio options: 2 out of 5 stars
Some robo-advisors provide socially responsible investing options or make portfolios customizable for investors who want to know they’re investing in ethical companies. J.P. Morgan doesn’t provide any socially responsible options. Customers can, however, exclude certain ETFs and a replacement will be provided.
Accounts supported: 2 out of 5 stars
J.P. Morgan supports individual and joint taxable accounts, traditional IRAs and Roth IRAs. Some of its competitors support additional accounts, such as custodial accounts and SEP and SIMPLE IRAs.
Tax strategy: 1 out of 5 stars
Some robo-advisors offer tax-loss harvesting, in which you sell losing investments to offset gains from winners. The strategy can reduce tax liability on taxable accounts, but J.P. Morgan Automated Investing doesn’t offer this service.
Automatic rebalancing: 5 out of 5 stars
Market shifts may cause your portfolio to drift away from your preferred asset allocation. J.P. Morgan offers automatic rebalancing, using a glide-path strategy to adjust your asset allocation over time. This ensures 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.
Human advisor option: 1 out of 5 stars
J.P. Morgan Automated Investing offers access to financial consultants (Series 7 and 63 licensed). They’re available Monday through Friday, from 8 a.m. to 9 p.m. Eastern and Saturday 9 a.m. to 5 p.m. Eastern, but don’t provide customers with personalized financial advice.
The company also offers 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 and Insights section with educational articles to help beginners understand investing.
Savings account/cash management options: 2 out of 5 stars
Customers can opt to sweep cash balances into a Chase Deposit Sweep account. Chase Deposit Sweep has a 0.01% interest rate as of Oct. 25, 2022.
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.
Customer support options: 3 out of 5 stars
There are multiple customer support options available in case you run into technical issues or have questions. You can access phone support Monday through Friday 8 a.m. to 9 p.m. Eastern, and Saturdays, 9 a.m. to 5 p.m. Eastern. Facebook and Twitter support is available Monday to Friday, 7 a.m. to 11 p.m. Eastern, and Saturday to Sunday, 10 a.m. to 7 p.m. Eastern. The provider also offers 24/7 email support.
Customer support is also available in person, but the hours depend on the bank branch location.
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.
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. We adhere to strict guidelines for 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.
INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
