Core Portfolios

Automated investment management

Core Portfolios makes investing easy. Our team of experts starts by building your portfolio. It's then monitored and rebalanced automatically to help keep you on track for your long-term goals. If your goals ever change, it’s easy to adjust your strategy.

Decided a managed portfolio is right for you?

Open yours in a few easy steps.

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Core Portfolios customized to you image



Customized to you

You are unique and your goals are too. Tell us where you’d like to be, and we’ll do the rest. Your investment plan can be customized with socially responsible investments and more.

Core Portfolios is built to help image



Built to help
you reach your goals

Our team of experts pick investments, and then create your portfolio. It’s monitored and automatically updated to keep your goals on track.

Core Portfolios sit back image



Sit back and
let us do the work

We’re hands on so you can be hands off. Track your progress online anytime or through monthly reports. And if your goals change, we can easily adjust your investment strategy.

Customized to you

You are unique and your goals are too. Tell us where you’d like to be, and we’ll do the rest. Your investment plan can be customized with socially responsible investments and more.

Built to help
you reach your goals

Our team of experts pick investments, and then create your portfolio. It’s monitored and automatically updated to keep your goals on track.

Sit back and
let us do the work

We’re hands on so you can be hands off. Track your progress online anytime or through monthly reports. And if your goals change, we can easily adjust your investment strategy.

 

Put your money to work today

Pay just 0.30% annually. All you need is $500 to get started!1

Enter an investment amount to calculate the annual advisory fee 

Minimum investment: $500

Annual fee*

Get started

*Based on 0.30% of assets1

What you get with Core Portfolios

Please note that while Core Portfolios does the investing on your behalf, it cannot tell you whether a managed account is right for you.

 

A customized portfolio

We’ll help you with an investment strategy that has the potential to grow with you.

 

Monitored to keep you on track

We’ll track your investments every day and rebalance to help meet your goals.

 

Help whenever you need it

We are always on hand to give you any support you may need.

 

A long-term investing strategy

Our Investment Strategy Team can help you with your goals over time.

Looking for another type of managed account?

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Have questions?

We’re here to help. Give us a call anytime.

Call us at 866-484-3658

FAQs

Which account types are eligible for Core Portfolios?

Most retail E*TRADE Securities brokerage and retirement accounts with a US address can enroll in the Core Portfolios Program. Eligible accounts include:

Brokerage:

  • Individual
  • Joint
  • Custodial

Retirement:

  • Rollover IRA
  • Traditional IRA
  • Roth IRA
  • SEP IRA

What criteria do you use to select investments for a portfolio?

For each asset class (such as equities or fixed income), E*TRADE Capital Management selects investment holdings that, when combined in broad-based asset allocation strategies, seek to provide a high level of return potential for a given level of risk over the long term, generally three years or longer. That’s called risk-adjusted return potential.

Each investment selection is made by analyzing a spectrum of key data points, such as historical performance, expenses, tracking error, and liquidity. E*TRADE Capital Management reviews and evaluates the investment holdings in a portfolio on an ongoing basis to see if any material withdrawals or deposits are made, and rebalances the account semiannually.

How do I fund an account?

Choose the method that works best for you:

  1. Transfer money electronically: Use our Transfer Money service to transfer within 3 business days.
  2. By check: You can easily deposit many types of checks.
  3. By wire transfer: Wire transfers are fast and secure.
  4. Transfer an account: Move an account from another firm.

Go now to fund your account.

How do I get started?

When we designed Core Portfolios, we started with the premise that it should be as easy to use as possible. That's why we boiled everything down to four simple steps:

Step 1: Complete an investor profile questionnaire

We’ll guide investors through a short series of questions about their investment objectives, time horizon, and risk tolerance. It’s the information we need to know to make an investment recommendation.

Step 2: Review your recommended portfolio

Next, we’ll recommend a diversified portfolio that fits the selected investor profile.

Step 3: Customize your portfolio

An investor can further personalize their portfolio with additional investment strategies like socially responsible and smart beta ETF investments.

Step 4: Implement your plan

How does it work?

When we designed Core Portfolios, we started with the premise that we don't start until we get to know you. In a few easy steps, you can get an efficient digital portfolio that is guided by you.

Plus, you'll be able to stay in control of your investing strategy and track your performance 24/7 through our digital dashboard. If your financial circumstances change, you can update your investor profile at any time, to keep you on track to meet your goals.

What is the investing approach of E*TRADE Capital Management?

E*TRADE Capital Management follows a disciplined investment strategy based on principles of Modern Portfolio Theory (MPT). MPT is a widely utilized framework for building diversified investment portfolios. The underlying philosophy of MPT is to contrast a portfolio with a combination of asset classes (e.g., US equity, international equity, fixed income) based on the expected returns and volatility that these asset classes have displayed over time. Combining different asset classes may help limit risk and increase returns of the investment portfolio as the classes have varying levels of correlation to one other. Many of the assumptions made in MPT rely on historical data, which may not be representative of the future, potentially leading to unexpected outcomes.

All portfolio holdings will be selected by E*TRADE Capital Management's investment strategy team based on multi-stage due diligence. 

Here’s how the investments are managed: 

  • E*TRADE Capital Management’s Investment Policy Committee, with the support of the investment strategy team, develops model portfolios. 
  • The team utilizes an investment analysis methodology that incorporates various quantitative criteria, including historical return, risk, expenses, manager tenure, performance and style consistency, and asset size and growth, to select securities held in the investment portfolios.
  • E*TRADE Capital Management uses an algorithm to determine your recommended portfolio of ETFs based on answers to your Investor Profile Questionnaire. The goal is to select the appropriate investment portfolio based on an investor’s investment objectives, risk tolerance, and time horizon.
  • Core Portfolios rebalances semiannually and when material deposits or withdrawals are made, to help keep the account on track.
  • Access to a dedicated support team is just a phone call away.6

For additional information, please see the E*TRADE Wrap-Fee Programs Brochure.

And finally, we’ll send monthly market commentary, along with timely insights during major market events, to help keep clients informed about their investments and the market. 

How do you rebalance an account?

E*TRADE Capital Management uses technology to rebalance an account semiannually in order to align it with the target asset allocation. It will also review the account for material deposits and withdrawals, and rebalance if it shifts too far from its target asset allocation. Although we monitor the account daily, it does not mean we will trade in the account daily. There could be some periods of time where the allocation does not shift, and no trades are required.

How does E*TRADE Capital Management choose which investments to sell when a client withdraws funds?

We would first try to use the cash balance in the account to satisfy the withdrawal. If the client needs additional cash, we strategically sell investments from across the portfolio in an effort to maintain the portfolio’s target asset allocation.

How can I further personalize my Core Portfolios account?

Once you have selected your portfolio, you can further customize your strategy based on your investing preferences.

Core Portfolios (Smart Beta): Want a more active portfolio strategy? We’ll allocate a portion of your assets to a smart beta ETF – a type of ETF that favors equities with certain characteristics which may help enhance your overall returns.  Factors, or specific characteristics of stocks that have performed well historically, are utilized to select stocks. This strategy also combines elements of active and index investing.

These strategies seek to outperform a benchmark index and typically aim to enhance returns or minimize risk relative to a traditional market-capitalization-weighted benchmark. An ETF employing a smart beta strategy may have higher portfolio turnover which may indicate higher transactions costs relative to its benchmark. Utilizing smart beta strategies does not guarantee against underperformance relative to a more traditional market-capitalization-weighted benchmark. 

Core Portfolios (Socially Responsible): Looking to align your investing with your personal values? We’ll adjust your portfolio to include an ETF that focuses on companies known for their environmental, social, and governance practices. Socially responsible ETFs invest to a specific mandate, including incorporating SRI criteria into investment analysis; screening for companies that adhere to environmental, social, or governance standards; or fixed income ETFs focused on community impact securities.

SRI strategies may eliminate or limit exposure to investments in certain industries or companies that do not meet certain environmental, social, or governance criteria. As a result, the ETF may underperform other funds or an appropriate benchmark that do not have an SRI focus.

Can I select a different portfolio than the one recommended?

Yes.  You have the ability to select a portfolio with more or less risk than the recommended portfolio. Plus, if your financial situation or goals change, you can easily update your portfolio or retake the questionnaire at any time. Changes that result in an updated risk profile will automatically trigger reallocation of the portfolio.

Does Core Portfolios offer cash management features, such as free checking?

Core Portfolios is managed with a long-term perspective in mind. Frequent cash withdrawals might make the portfolio hard to manage and cause it to deviate from its objectives. To avoid this problem, Core Portfolios doesn’t offer features such as check writing, debit cards, and Bill Pay. However, we don’t want to stand between clients and their cash. If a client needs to make a withdrawal, Customer Service can be reached anytime at 866-484-3658, and we’ll send a check or wire. A client can also transfer money online to another account and withdraw it from there.

What tax-efficiency features are offered by Core Portfolios?

Core Portfolios provides a tax-sensitive investment strategy that utilizes municipal bond ETFs that may help reduce taxes incurred on interest and dividends associated with those portfolios. All brokerage accounts are automatically enrolled in a tax-sensitive portfolio. Once enrolled in Core Portfolios, you can update this feature at any time. IRAs and other tax-advantaged account types are also eligible for Core Portfolios.

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Check your progress over time, make updates, and stay in control of your money with our mobile app that is rated Best Robo-Advisor for Mobile Experience in Investopedia’s Best Robo-Advisors for 2020 awards.7

 

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