Marcus Invest Review 2021: Pros, Cons and How It Compares

Marcus Invest brings investors automated portfolio management with multiple options, but a higher minimum than average.

Alana BensonMarch 19, 2021
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Our Take

3.5

NerdWallet rating 

The bottom line: Marcus Invest brings the investment expertise of Goldman Sachs to its robo-advisor offering for a 0.35% management fee. Marcus Invest has a higher investment minimum than most robo-advisors, but offers multiple investment strategies.

Marcus Invest

Marcus Invest

Fees

0.35%

per year

Account Minimum

$1,000

Promotion

None

no promotion available at this time

Pros & Cons

Pros

  • Impact and smart beta strategies.

  • High-yield savings account option.

Cons

  • $1,000 account minimum.

  • No human advisor access.

  • No tax-loss harvesting.

Compare to Other Advisors

Betterment
SoFi Automated Investing
Ellevest
NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Fees

0.25%

management fee

Fees

0%

management fee

Fees

$1 - $9

per month

Account Minimum

$0

Account Minimum

$0

Account Minimum

$0

Promotion

Up to 1 year

of free management with a qualifying deposit

Promotion

Free

career counseling plus loan discounts with qualifying deposit

Promotion

2 months free

with promo code "nerdwallet"

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Full Review

Marcus Invest offers investment management with a $1,000 minimum for a 0.35% fee. Based on your personal factors, Marcus Invest will recommend a conservative, moderate or aggressive portfolio and then manage it for you by rebalancing the account when it shifts too far from your target allocation. The service also allows you to choose between three investment strategies: Core, Impact and Smart Beta.

Marcus Invest is best for:

  • Hands-off investors.

  • Socially responsible investors.

  • Investors looking for a high-yield savings account.

Marcus Invest at a glance

Account minimum

$1,000

Account management fee

0.35%

Investment expense ratios

Core portfolios: 0.05% - 0.16% Impact portfolios: 0.11% - 0.19% Smart Beta portfolios: 0.15% - 0.17%

Marcus Invest will apply a credit for the expense ratios on Goldman Sachs ETFs (included only in Smart Beta portfolios).

Account fees

Wire transfer (domestic): $25.

Outgoing account transfers (full or partial): $75.

Portfolio mix

Portfolio mix is generally well-diversified but lacks exposure to international bonds.

Socially responsible portfolio option is available for no extra charge.

Accounts supported

Individual and joint investment accounts and traditional, Roth and SEP IRAs.

Tax strategy

Marcus Invest sells your assets with the lowest taxable gains first to help minimize your tax bill.

Automatic rebalancing

Free on an as-needed basis.

Human advisor option

None.

Bank account/cash management account option

High-yield savings account with a rate of 0.50% APY.

Customer support options (includes website transparency)

Customer support is available Monday through Friday, 9 a.m. to 6:30 p.m. Eastern time by phone, email or chat.

Where Marcus Invest shines

Multiple investing strategies: Marcus Invest doesn’t offer just one strategy, but three: a Core portfolio, an Impact portfolio and a Smart Beta portfolio. The Core strategy is designed to track market benchmarks while delivering risk mitigation.

Socially responsible investors will be interested in the Impact portfolio, which invests in funds that meet certain environmental, social and governance, or ESG, criteria. That means your portfolio can help support sustainable business practices and avoid those that may cause environmental and social harm. In particular, this portfolio avoids investing in coal, tobacco and firearms.

Finally, the Smart Beta portfolio seeks to outperform the market. This portfolio is the only one that includes Goldman Sachs exchange-traded funds, or ETFs, and Marcus Invest will refund the ETF fees (also known as expense ratios) for Goldman Sachs ETFs back to your account. For example, if the expense ratios on your Goldman Sachs ETFs total $10 per year, Marcus Invest will subtract $10 from the advisor fees you owe.

High-yield savings account: Marcus offers a high-yield savings account with a 0.50% annual percentage yield as of this writing, which is currently one of the best APYs available from a robo-advisor that offers a savings account. The savings account also has no fees, no minimum deposit, and same-day transfers of up to $100,000 to or from other banks.

Automatic rebalancing: Though fairly common for robo-advisors, Marcus Invest offers automatic rebalancing when your asset allocation strays too far from its preset benchmarks.

Where Marcus Invest falls short

Higher-than-average account management fee: An annual 0.35% management fee is on the higher end of the robo-advisor spectrum, with many charging 0.25% or less.

Account minimum: Marcus Invest requires a $1,000 account minimum. Many robo-advisors offer services with no account minimum. Some have $500 minimums, but few have minimums of $1,000 or higher.

No tax-loss harvesting: Marcus Invest doesn't offer tax-loss harvesting, a practice offered by several other robo-advisors that's designed to reduce capital gains taxes on taxable accounts. However, the service does employ a tax-lot relief methodology, which sells assets with the lowest capital gains first in an attempt to minimize taxes.

No advisor access: Marcus Invest doesn't offer any access to financial advisors, which may not matter to you if you’re just looking for investment management. But some robo-advisors such as Wealthsimple and Wealthfront give clients access to financial advisors for free. Others like Betterment and Ellevest allow you to pay a fee to meet with a professional.

Is Marcus Invest right for you?

If you’re looking for investment management and a high-yield savings account, Marcus Invest could be a good option. The three different investment strategies are attractive features, but the $1,000 minimum and higher-than-average fee may turn off some investors.

» How does Marcus Invest stack up? See our list of the best robo-advisors