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Our Take
Axos Managed Portfolios has undergone several changes recently that have made it more competitive within the robo-advisor space. The Managed Portfolios platform has an upgraded user experience after adding features such as creating unlimited unique portfolios, selecting investment options and determining allocation in each portfolio, the ability to choose individual asset classes, and the roll-out of the all-in-one app, which allows investors to sync internal and external accounts for a more comprehensive financial overview. We will take a look at the pros and cons to help you decide if Axos Managed Portfolios is right for your investing needs.Pros & Cons
- Tax-loss harvesting
- Low fees
- Platform re-design now allows for external and internal account syncing for a more comprehensive financial picture
- Limited account types
- Minimal customization
- Website is not user-friendly
Account Overview
| Account Minimum | $500 |
|---|---|
| Fees | 0.24% annual advisory fee, charged monthly |
| Goal Setting | Yes |
| Available Assets | 30+ asset classes |
| Interest Paid on Cash Balances | N/A |
| Customizable Portfolio | Yes, limited |
| View Portfolio Before Funding | Yes, but you must set up an account and provide personal information, including Social Security number |
| Customer Service | Yes, via phone, email, or Evo (online virtual chat) |
| Financial Advisor Available | No |
| Cash Management | No, only through Axos Bank |
| Tax-Loss Harvesting | Yes |
| External Account Syncing/Consolidation | Yes |
| Mobile App | Yes |
Account Setup
Setting up an account with Axos Managed Portfolios is relatively quick and easy, and can be done entirely online. Clients will need to walk through a questionnaire regarding their investment goals, risk tolerance, and time horizon. Managed Portfolios will then suggest a portfolio that meets their determined investment strategy. When opening a Managed Portfolios account, you will be limited to the following account types:- Individual personal investment account
- Traditional or Roth IRA
Automatic rebalancing will take place any time there is a move of 5% or more away from your target. Making changes to goals or investing preferences will also potentially trigger a rebalance as Managed Portfolios makes the necessary changes to get your portfolio aligned with the new target goals.
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Goal Planning
As clients walk through the questionnaire to open an account, they are able to select short-term and long-term goals, such as planning for retirement, saving to buy a home, or building up an emergency fund. From there, Axos Managed Portfolios suggests a portfolio to help reach those goals.
Axos offers several goal-planning tools to help all of their clients run scenarios and better manage their finances:Investopedia Robo-Advisor Survey
According to Investopedia's 2023 Robo-Advisor Consumer Survey, when asked to choose from a list of up to three top investment goals that they are most likely to use their robo-advisor to plan for, the majority of respondents chose using these digital wealth management platforms to invest for making large purchases like houses, vehicles, and travel.
Account Services
Axos Managed Portfolios is a straightforward, conventional robo-advisor. As such, clients looking for traditional banking services and products such as checking, savings, and lending will need to use Axos Bank for lending and cash management services, as these are not contained within the robo-advisory offering.Cash Management
Unlike several other platforms, Axos Managed Portfolios do not include cash allocations, so your portfolio is fully invested. Clients have the option to open a High Yield Rewards Checking Account and earn up to 3.30% APY, with no bank fees, maintenance fees, overdraft fees, or minimum balance fees. Additionally, clients can use any ATM at any time because Axos reimburses all domestic ATM fees.
Portfolio Construction
Axos Managed Portfolios offers clients what would be expected with a standard robo-advisor service. They are able to invest in a recommended portfolio that Axos puts together based on the personal financial information that was submitted regarding financial objectives and time horizons, with a minimum investment of $500. Axos recommends portfolios of ETFs in several asset classes:
- U.S. equities
- International developed equities
- International emerging equities
- U.S. Treasurys
- U.S. inflation-protected Treasurys
- U.S. investment grade corporate bonds
- Short-term corporate bonds
- Real estate trusts
- Short-term high-yield corporate bonds
- U.S. short term Treasuries
Available Assets
| Individual Stocks | No |
|---|---|
| Mutual Funds | No |
| Fixed Income | Yes, in ETFs |
| REITs | Yes, in ETFs |
| Socially Responsible or ESG Options | Yes, through customization options |
| ETFs | Yes |
| Non-Proprietary ETFs | Yes |
| Private Equity | No |
| Forex | No |
| Crypto | No |
Portfolio Customization
After the initial account opening, investors are able to update their portfolio allocation at any time by changing their goals or investing preferences. Even if they do not have a significant change to make, clients are encouraged to review information at least once per year to make sure all information, including investment goals, is current. Axos clients also have the option of choosing premium services for no additional fee. Axos Managed Portfolios allows investors to create as many unique portfolios as they wish. Investors are able to select from a list of investment options and determine the percent allocation in each portfolio. Additionally, investors are also able to choose individual asset classes, an option not offered by many robo-advisors.
Portfolio Management
Axos Managed Portfolios will keep your investments automatically on target with the goals and targets that you set. These can easily be changed at any time from your account dashboard. If you make changes to your goals or financial situation, Managed Portfolios will automatically adjust. Any time there is a move of 5% or more away from your target, your portfolio will rebalance. As part of this automatic rebalance, Managed Portfolios will look to first use your dividends and cash to try to diminish capital gains, rather than just selling your ETFs in order to rebalance your portfolio. In addition to this tax minimization strategy, Axos offers a tax-loss harvesting strategy, which monitors your price levels to detect small losses throughout the year in an attempt to help reduce your overall annual tax bill.
Axos now offers the ability for investors to sync all Axos and external accounts via the Personal Finance Manager (PFM) app. Investors can view all of their accounts in one place to get a comprehensive view of their entire financial situation-- in real time-- to more efficiently track spending, savings, and investments. PFM shows investors the overall picture of each area of spending, savings, and investments, then provides the breakdown of each account that has been synced.
At Axos, the account types that you can invest in are limited to:- Individual personal investment account
- Traditional IRA
- Roth IRA
It is also important to note that you must be a U.S. resident, resident alien, non-resident alien, or green card holder to open an Axos Invest Managed Portfolios account.
| Key Portfolio Management Features | |
|---|---|
| Automatic Rebalancing | Yes |
| Reporting Features | Statements and tax documents |
| Tax-Loss Harvesting | Yes |
| External Account Sync/View | Yes |
User Experience
Desktop
Axos has updated their website and app, moving from separate investing and banking to a more comprehensive platform. Clients can now conveniently sync and access all of their accounts with Axos, and external accounts, in one place, making managing their finances easier.Mobile
Clients can easily view their accounts from their smartphone, as Axos has apps for both iOS and Android. Reviews are mixed on the mobile experience. The Axos Invest Managed Portfolios app has just 1.8 stars from over 500 reviews on Google Play. However, the Axos All-In-One Mobile Banking app in the Apple store offers a better experience, earning 4.7 stars with over 12,400 reviews.
Customer Service
- Call (888) 502-2967
- Chat online with Axos Bank virtual financial assistant, “Evo”
- Email: support@axosinvest.com
- Existing customers can log in to their account and send a secure message
Security
Axos Managed Portfolios is a bank-based robo-advisor that offers premier-level security features, fraud protection, customer education, and more.Axos strives to keep your information safe, using security features that include:
- Technologies designed to detect and prevent cybercrimes
- Firewalls to help block unauthorized users
- Secure Socket Layer encryption for safe browser connectivity
- Usernames and passwords share prevention
- Automatic account logout
- Fraud monitoring
Axos Invest, Inc. is an SEC registered investment advisor. Brokerage services are provided by Axos Invest LLC, which is a Member FINRA/SIPC. Securities and cash are not FDIC Insured, so there is no bank guarantee. All cash and securities held in Axos Invest client accounts are protected by SIPC up to $500,000, with a limit of $250,000 for cash.
Education
Axos Managed Portfolios has very limited educational materials available. However, it does offer a few additional resources on current events and investor education:- Invest blog
- Axos Invest Investing Evolved podcast
- Axos Invest webinar
Commissions and Fees
Axos Managed Portfolios offers low fees and minimal additional fees and is quite competitive in the area within the industry. Axos charges an advisory fee of 0.24% on all accounts over $500; if the account balance is less than $500, there is a minimum fee of $1 per month
| Category | Fee |
|---|---|
| Management Fee for $5,000 Account | $12 per year ($1 per month) |
| Management Fee for $25,000 Account | $60 per year ($5 per month) |
| Management Fee for $100,000 Account | $240 per year ($20 per month) |
| Termination Fees | $0 taxable personal investment account $40 to close Axos Invest IRA; additional fees from Axos Clearing may also apply |
| Expense Ratios | 0.12% for core accounts |
The Bottom Line
Axos Managed Portfolios is a solid choice for a basic robo-advisor. The low fees and relatively low minimum investment make this an attractive option for investors just starting out. Axos Bank also has a wide range of additional banking and investing options that provide convenience and flexibility for clients. While these options are not directly tied to the Managed Portfolios account specifically, they are easily accessed and can be synced to the main profile dashboard in the newly updated Personal Finance Manager app.Is Axos a Legit Bank?
Yes, Axos is a legitimate bank and was one of the pioneers in digital banking. It has an A-plus rating with the Better Business Bureau and is fully insured by the Federal Deposit Insurance Corporation (FDIC). Since its formation in 2000, it has grown exponentially, offering many different types of checking accounts such as Essential, Rewards, First, Cashback, and Golden Checking. The bank also offers a high-yield money market and savings account for those looking to build their savings with a fully serviced bank.
Axos Bank also offers its customer base many ways to plan for the future with lending products such as mortgage, personal, and auto loans. Axos is a fully functioning financial institution that gives customers many options to build their wealth.
Is Axos Invest Safe?
Yes, Axos Invest is a safe investing service. The financial institution offers managed portfolios and a self-directed trading platform. Both services are insured by the Securities Investor Protection Corporation (SIPC) and equipped with fraud protection and security features to keep your accounts safe.
What Is the Management Fee for Axos?
Investors without a lot of capital to invest in a robo-advisor will find Axos Managed Portfolios to be a suitable option. Axos Managed Portfolios requires a minimum investment of $500 to get started and charges 0.24% of assets under management (AUM).
How Does Axos Managed Portfolios Help You Save Money on Your Taxes
Axos Managed Portfolios helps investors save money on their taxes in the following ways:
- Automated investing into Roth or Traditional IRAs: Investors have the option of selecting a Roth IRA to save money on taxes when withdrawing funds, or to enjoy a tax break now, when investing in a traditional IRA.
- Automatic portfolio rebalancing: With Managed Portfolios, automatic portfolio rebalancing will occur. However, instead of just selling an investor’s current investments to rebalance the portfolio, investor dividends and deposits are assessed first to try to minimize capital gains.
- Tax-loss harvesting: Managed Portfolios track price levels in the portfolio to identify small losses throughout the year, which helps reduce the annual taxes owed.
Tax-loss harvesting is a strategy that helps investors to minimize the amount of taxes they owe by selling poorly performing investments for a loss in order to offset the capital gains of other investments within their portfolio.
Everything You Need to Know About Robo-Advisors
How We Review Robo-Advisors
Providing readers with unbiased, comprehensive reviews of digital wealth management companies, more commonly known as robo-advisors, is a top priority of Investopedia. We used our 2023 consumer survey to guide the research and weightings for our 2024 robo-advisor awards. To collect the data, we sent a digital survey with 64 questions to each of the 21 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process spanned from Jan. 8, to Feb. 9, 2024.
We then developed a quantitative model that scored each company to rate its performance across nine major categories and 59 criteria to find the best robo-advisors. The score for each company’s overall star rating is a weighted average of the criteria:- Account Services: 10.00%
- Account Setup: 5.00%
- Customer Service: 5.00%
- Fees: 15.00%
- Goal Planning: 21.00%
- Portfolio Contents: 17.00%
- Portfolio Management: 17.00%
- Security & Education: 5.00%
- User Experience: 5.00%
Read more about how we research and review robo-advisors.
Separately, our research team conducted a survey of 205 U.S. adults aged 18 to 72 who are current clients of one of 18 robo-advisors. While the information collected did not influence the development of our ratings model, it was instrumental in gathering the valuable insights published in Investopedia's 2023 Robo-Advisor Consumer Survey.
Participants in our 2023 Robo-Advisor Survey opted-in to an online, self-administered questionnaire from a market research vendor. Data collection took place between Aug. 30, and Sept. 15, 2023, with 11 video interviews conducted with volunteer respondents from Sept. 7, to Sept. 17, 2023. Multiple quality checks, including screeners, attention gauges, comprehension evaluations, and logic metrics, among others, were used to ensure only the highest quality responses were included.