Axos Invest Managed Portfolios Review

Axos Invest offers automated portfolios, self-directed trading, and more. Axos; Alyssa Powell/Insider

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Bottom line: Axos Invest Managed Portfolios is best for goal-based, passive investors who want to avoid the legwork of selecting investments or rebalancing portfolios on their own. The account isn't a good fit for those in search of joint accounts, custodial accounts, or SEP IRAs.

Axos Invest Managed Portfolios

4.34/5

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Account Minimum

0.24%

Investment Types

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On Axos Bank's website

Axos Invest Managed Portfolios

Learn more

On Axos Bank's website

Details

Account Minimum

0.24%

Editor's Rating

4.34/5

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Axos Managed Portfolios: Overall Rating

Is Axos Invest Managed Portfolios Right for You?

Axos Financial's automated investment account, Axos Invest Managed Portfolios, is best for hands-off and long-term focused investors in search of professionally managed and personalized ETF portfolios. It's one of the two accounts Axos provides. The company also offers self-directed trading.

The automated account also gives you access to features like quick deposits, automatic portfolio rebalancing, tax-loss harvesting, IRA automation, and more. Plus, users with Axos Bank Rewards Checking accounts can earn up to 1.25% in interest if they also open Axos Invest accounts.

Axos could also be a good choice if you have at least $2,000 upfront. Through March 31, 2023, you'll earn a $250 bonus if you open a new account, deposit at least $2,000 of new funds, and keep the money in the account for a minimum of 90 days. This bonus is only available to customers in the US.

Founded in 2009 as WiseBanyan, Inc. the automated advisor became Axos Invest in February 2019 after Axos Financial, LLC acquired it. It supports US investors in all 50 states.

You can access your investments on iOS or Android devices.

Axos Invest Managed Portfolios vs. Betterment

Axos Invest Managed Portfolios and Betterment are both great options for investors in search of ongoing portfolio management. But the platforms differ when it comes to fees, features, and investment choices.

If you're looking to start investing without any minimum requirements, Betterment is a better move. Its most basic account has a $0 minimum. Plus, the platform offers more account options (e.g., it provides each account Axos offers in addition to joint accounts, trusts, SEP IRAs, and inherited IRAs).

Axos Invest has lower advisory fees.

Axos Invest Managed Portfolios vs. Fidelity Go

Axos Invest and Fidelity Go (Fidelity's automated account) best serve hands-off investors who want to leave the day-to-day trading decisions to professionals. But Fidelity Go is a stronger choice if you're looking to start investing without any minimum requirements.

Axos Invest has a higher minimum requirement, but unlike Fidelity, it offers tax-loss harvesting, and its 0.24% annual fee applies to all account sizes (you'll have to pay 0.35% per year at Fidelity Go if you have a minimum balance of $50,000).

However, Fidelity Go's mutual funds are free of expense ratios. You'll have to account for such fees at Axos Invest.

Ways to Invest with Axos Invest Managed Portfolios

Automated Portfolios

You need a minimum of $500 to set up a personalized ETF portfolio with Axos Invest. The account also carries a 0.24% annual fee, but you can invest toward several different goals (e.g., retirement, emergency fund, building wealth, or homebuying) and edit or delete them at any time.

Axos Invest also offers the following account features:

• Quick deposit: Deposits with some investment apps can take one to three days, but this feature lets you invest any deposits on the same or next trading day.
• Auto deposit scheduler: This feature lets you determine the exact day additional funds deposit into your account.
• Tax-loss harvesting: This tax-advantaged tool aims to reduce your annual tax bill by selling investments that have incurred losses and replacing them with similar securities.
• Automatic portfolio rebalancing: You don't have to do the work to keep your portfolio intact. Axos Invest keeps it aligned with the original target allocation for you.
• IRA automation: Whether you're planning to use a traditional or Roth IRA, Axos Invest automatically manages the retirement account for you.

As for account types, Axos Invest supports individual investment accounts, traditional IRAs, Roth IRAs, and SEP IRAs.

Account Types and Investment Choices

Axos Invest Managed Portfolios uses ETFs from more than 30 different asset classes (asset classes are investments that have similar market characteristics). According to its website, it gets these funds from a database of more than 1,400 ETFs.

When selecting funds, Axos Invest says it also looks at factors like historical performance, investment focus, and operational efficiency. Though it supports short-term goals, the company mainly uses a buy-and-hold strategy that strives to maximize returns over the long haul.

It builds portfolios that align with each investor's risk tolerance, time horizon, and investment return goals.

Axos Invest Managed Portfolios: Is It Trustworthy?

The Better Business Bureau has given Axos Invest an B- rating to reflect its views of how well the company interacts with its customers. BBB ratings range from A+ to F, so Axos Invest exhibits a relatively high level of customer trustworthiness.

When assigning ratings, the bureau also considers type of business, time in business, customer complaint history, licensing and government actions, and advertising issues. But keep in mind that its ratings don't guarantee that a company will be reliable or perform well. 

As you weight your options, it's equally important that you do your own due diligence in addition to the BBB's findings. Axos Invest has closed eight complaints in the past 12 months, according to BBB data. It currently has one unresolved complaint.

Axos Invest Managed Portfolios — Frequently Asked Questions (FAQ)

Related Terms

• ETFs: These funds usually contain a blend of stocks, bonds, and commodities. You can invest in two types of ETFs: index-based ETFs and actively managed ETFs. 
• Mutual funds: Like ETFs, mutual funds contain a blend of several investment types, but these funds are almost always managed by professional money managers.
• IRA: Any individual above age 18 with taxable income can open an IRA. Retail investors can utilize accounts like traditional and Roth IRAs and earn several tax perks in the process. Both allow you to contribute up to $6,000 per year (or $7,000 for those 50 and older). In addition, small businesses and self-employed individuals will have access to other IRAs, such as SEP IRAs and SIMPLE IRAs.
• Robo-advisor: Also known as automated investing portfolios, these accounts rely on computer algorithms and/or expert oversight to build personalized, self-managing portfolios for hands-off investors.