Axos Invest Managed Portfolios
Product Name: Axos Invest
Product Description: Axos Invest Managed Portfolios is the robo-advisor investing platform of Axos Invest, a subsidiary of Axos Financial, Inc.
Summary
Axos Invest Managed Portfolios is a robo-advisor investing platform that offers automated investing with a low advisory fee of 0.24% and a minimum investment of $500. Axos Invest is a division of Axos Financial, Inc., which also offers online banking through Axos Bank.
Pros
- Low annual advisory fee
- Goal setting
- Automatic rebalancing
- Invest and bank online under the same login
Cons
- $500 investment minimum
- Limited account types supported
Axos Invest Managed Portfolios is a robo-advisor investing platform that offers automated investing with a low advisory fee of 0.24% and a minimum investment of $500. It features a helpful goal-setting tool and automatic rebalancing. Axos Invest is a division of Axos Financial, Inc., which also offers online banking through Axos Bank.
At A Glance
- Low-cost robo-advisor platform
- Advisory fees: 0.24%
- Account minimum
- Self-directed trading available through Axos Invest
Who Should Use Axos Invest Managed Portfolios?
Robo-advisor platforms like Axos Invest Managed Portfolios are ideal for beginner investors or anyone looking for a low-cost, hands-off approach to investing. The nice thing about Axos Invest is that it also has a self-directed trading platform, so investors can have the best of both worlds. Or, you can start with Managed Portfolios and graduate to self-directed investing without going to another online broker.
If you want full control over your investments or to deal with a human advisor, this platform is likely not for you.
Axos Invest Managed Portfolios Alternatives
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| Annual Fees | 0.25% | $4/month or 0.25% | $0 |
| Min. Investment | $500 | $0 | $1 |
| Account Types | Taxable accounts, Traditional, Roth, SEP IRA accounts, 529 Plans | Taxable accounts, Roth, Traditional, SEP, Inherited IRA, Trust accounts | Taxable accounts, Roth, Traditional, SEP IRA |
| Learn More | Learn More | Learn More |
Table of Contents
Axos Invest Managed Portfolios is a robo-advisor platform offered by Las Vegas-based Axos Financial, Inc. In addition to its managed investing platform, Axos Financial also offers self-directed investing and online banking through Axos Bank.
Axos Invest was once known as WiseBanyan until it was acquired by Axos Financial in October 2018. At the time, much of the tools remained the same and were simply brought into the Axos Financial brand. Since then, there have been more significant updates.
How To Get Started With Axos Invest
You can apply for a Managed Portfolios account from the Axos Invest website within minutes. To get started, head to Axos Invest and choose “Open An Account.” To apply, you must be at least 18 years of age, have a permanent U.S. residential address, and provide the following information:
- Personal details (Name, birthdate, etc.)
- Social Security Number (SSN)
- Email Address
- Mobile Phone Number
- Bank Account Information (to link to your Axos Account)
Once you’ve submitted your application, it can take up to 4 business days for your funds to arrive in your Axos account from your bank and for Axos to build your portfolio. Your account will likely display a “pending” status during this time.
Note: Axos will also need to be able to access your credit report. According to its website, if you have a credit freeze on your report, you’ll need to contact TransUnion and/or Experian to request a temporary lift before submitting your application.
Axos Invest Managed Portfolios
Managed Portfolio’s is Axos Invest’s robo-advisor platform. It competes with similar platforms, such as Wealthfront and Betterment, offering a fully automated investing solution at a low cost. You can open the following types of accounts:
- Taxable investment account
- Traditional IRA
- Roth IRA
Here’s a closer look at what Axos Managed Portfolios offers.
Goal Setting
Whether you’re saving for retirement, a home down payment, or just building an emergency fund, Axos allows you to set your goals and the timeline required to meet them. Axos will recommend deposit plans to help you reach your goals, help you track your progress, and automatically rebalance your investments along the way.
It’s critical that you keep your account up to date so that Axos can provide you with accurate goal recommendations. Always ensure your income, net worth, and time horizon details remain current.
Pricing
Axos Managed Portfolios offers straightforward pricing, charging a 0.24% advisory fee. For example, if your balance is $100,000, your monthly cost would be approximately $20.00 (fees are charged monthly and are calculated as 1/12 of 0.24% of your monthly balance. Fees are also retroactive, so September’s fee would be charged in October, for example.
Portfolio Management
Axos Invest Managed Portfolios are comprised of low-cost exchange-traded funds (ETFs). Axos employs a long-term buy-and-hold strategy, so you won’t notice frequent buying and selling of securities in your portfolio. They actively rebalance your account to ensure your portfolio remains within the recommended asset allocation. Any time your allocation swings by 5% or more, Axos will rebalance. They first rebalance any available dividends and deposits to minimize the amount of securities sold.
Axos Invest Self-Directed Trading
As mentioned, Axos Invest offers a self-directed trading platform for investors who want hands-on control of their investments. It offers commission-free stock, ETF, and mutual fund trades. You can open an individual or joint taxable account and a Roth, Traditional, or Rollover IRA retirement account.
There is no account fee for the basic trading platform, but if you upgrade to Axos Elite for $10/month, it unlocks the following features:
- Real-time market data
- Extended market hours (7:00 PM ET)
- Expert Insights and TipRanks premium market research
- Margin trading
- Advanced options trading with lower pricing
While leading online brokers offer more features with their basic trading platforms, Axos Invest allows you to manage your online banking and your investments under a single login, which is a nice benefit.
Start Trading with Axos Invest
Axos Managed Portfolios vs. Alternatives
Wealthfront
Wealthfront is a longstanding robo-advisor platform with similarities to Axos Invest Managed Portfolios. It has the same minimum investment amount of $500, and its advisory fee, at 0.25%, is nearly identical. One advantage to Wealthfront is that it currently pays 5.00% APY on cash, which you can’t get with Axos Invest. Axos, on the other hand, offers more banking services than Wealthfront, via Axos Bank. Learn more in our full review of Wealthfront.
Betterment
Betterment is another popular robo-advisor platform and a close competitor to both Axos Invest and Wealthfront. However, Betterment does not have an investment minimum. You can get started with as little as $1. Its fees are similar, at $4/month or 0.25% annually, depending on your portfolio balance. Unlike Axos Invest, Betterment does not offer self-directed trading, so you cannot open an account to purchase individual stocks. It currently pays 5.00% on uninvested cash, which you can’t get with Axos. Learn more in our full review of Betterment.
SoFi
SoFi is an online financial platform that offers everything from banking to loans to credit cards to investing. It also has its own robo-advisor platform through SoFi Invest. Unlike Axos Invest, Wealthfront, and Betterment, it doesn’t charge any advisory fees; however, that doesn’t mean it’s more affordable. SoFi makes money on its ETF portfolios, which are more expensive than standard ETFs and are included in its automated investing portfolios. SoFi does not have an investment minimum, so you can get started with as little as $1. Learn more in our full review of SoFi Invest.
FAQs
What is the management fee for Axos Invest Managed Portfolios?
Axos Invest charges an annual management fee of 0.24% for its robo-advisor platform. The fee is charged every month based on the investment balance.
What is the minimum investment for Axos Invest?
Axos Invest does not have a minimum investment amount for its self-directed trading platform. Its robo-advisor platform, Managed Portfolios, has a $500 minimum investment.
Are robo-advisor portfolios worth it?
Robo-advisors can be worth it for the right investor. If you prefer a passive investing strategy and don’t mind giving up some control over the securities you hold in your portfolio, then a robo-advisor can be an excellent, low-cost choice. If you want more control over the day-to-day decision-making and wish to hold different types of securities, like individual stocks, then a robo-advisor isn’t likely your best option.
Summary
If you prefer to take a passive approach to investing, Axos Invest Managed Portfolios is a solid choice. It offers straightforward pricing, and the $500 minimum investment shouldn’t restrict too many investors. We also like that you can open a self-directed investing account and manage your banking under the same roof. However, if you need to open an account type Axos Invest does not support or want to earn a higher APY on your uninvested cash, you may want to consider a different platform.
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About Jim Wang
Jim Wang is a forty-something father of four who is a frequent contributor to Forbes and Vanguard’s Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.
Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology – Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.
One of his favorite tools (here’s my treasure chest of tools, everything I use) is Empower Personal Dashboard, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you’re on track to retire when you want. It’s free.
Opinions expressed here are the author’s alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.
