Fully Digital Automated Experience with Passive ETF Portfolios to Keep Cost Low
OMAHA, Neb., November 4, 2016 /BUSINESS WIRE/ — TD Ameritrade Holding Corporation (Nasdaq:AMTD) is expanding its digital advice offerings with the soft launch of Essential Portfolios1 – an automated, low-cost advisory service for digital-first investors.
The national launch of Essential Portfolios is expected in early calendar year 2017.
Research has shown that people who have a financial plan with specific goals are 85 percent confident they will reach their retirement goals (versus 28 percent that do not). That’s where Essential Portfolios comes in – allowing investors to establish a goal, intuitively assess their risk tolerance level, and identify key dates for long-term financial goals like college savings or retirement.
From there, the algorithmic platform matches them with objective portfolio recommendations based on their financial goal. Essential Portfolios offers flat-fee structure investment alternatives that include a variety of passive, index-based nonproprietary ETFs and a $5,000 minimum deposit aimed to suit investors who seek low-cost financial solutions and an intuitive digital experience from start to finish.
This launch follows the June re-release of Amerivest Managed Portfolios, which underwent a significant digital enhancement. Amerivest offers investors a self-guided digital investment guidance experience, paired with as much or as little human interaction as investors want.
“Today’s investors want more choices for investment advice. Some want that guidance to come from a human, partnered with digital platform, while others might prefer an all-human or all-digital approach. Our job is to deliver solutions that are easy-to-use, effective and allow our clients to grow with us as their needs evolve,” said Tom Bradley, president of retail distribution at TD Ameritrade. “Essential Portfolios is a great example of how we were able to leverage Amerivest’s existing technology to create an all-digital version for the more value-conscious investor.”
Essential Portfolios: The benefits of professional management at a low cost
- Five diversified, model portfolio strategies with fund recommendations by the objective professionals at Morningstar® Investment Management LLC
- Each portfolio consists of five ETFs and cash (weighted average expense ratio of 6 to 8 bps)
- Competitive and low-cost pricing to keep the service affordable (flat-fee structure of 30 bps)
- Embedded goal planning and tracking tools
- Key statistics on the portfolio holdings
- Additional features and upgrades will be introduced throughout the coming months, including tax loss harvesting
- Visit our website to open an account in 15 minutes or less via desktop, tablet or phone
- Set a personalized investing goal
- Select your personal risk tolerance
- Receive a recommendation for a specific model portfolio
- Open a TD Ameritrade Investing Account
- Invest a minimum of $5,000
Ongoing Monitoring and Support
- Monitoring and automatic rebalancing by Amerivest
- Online dashboards for easy performance monitoring
- “On the go” access to account information through Essential Portfolios mobile app
- Embedded investment alerts and updates
- Essential Portfolios support team available via live chat, e-mail and phone
Learn more about Essential Portfolios, Amerivest and other solutions for investors of all ages and experience levels at TD Ameritrade here.
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how — bringing Wall Street to Main Street for more than 40 years. An official sponsor of the 2016 U.S. Olympic and Paralympic Teams, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or website for more information.
Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC.
About Amerivest Investment Management, LLC
Essential Portfolios is an investment advisory service of Amerivest Investment Management, LLC (Amerivest), a registered investment advisor. Brokerage services provided by TD Ameritrade, Inc. TD Ameritrade, Inc. and Amerivest Investment Management, LLC are both wholly owned subsidiaries of TD Ameritrade Holding Corporation. Amerivest is a trademark of TD Ameritrade IP Company, Inc. Amerivest provides non-discretionary and discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities. For more information please see the Amerivest Disclosure Brochure (ADV Part 2). Amerivest Investment Management, LLC, will assess an annual advisory fee based on the value of assets in your TD Ameritrade Investing Account. The fee for all Amerivest clients will be assessed at the beginning of each quarter in advance for that quarter and will be prorated for accounts opened and closed during that quarter. TD Ameritrade, Inc. will not charge commissions for eligible securities trades placed in your TD Ameritrade Investing Account. All fees are subject to change.
About Morningstar Investment Management LLC
Morningstar Investment Management LLC is a registered investment advisor and subsidiary of Morningstar, Inc. Morningstar Investment Management provides consulting services to Amerivest Investment Management, LLC (“Amerivest”) by providing recommendations to Amerivest regarding asset allocation targets and selection of securities; however, Amerivest retains the discretion to accept, modify or reject Morningstar Investment Management’s recommendations. Morningstar Investment Management selects securities from the universe of investments made available through TD Ameritrade. In performing its services, Morningstar Investment Management may engage the services of its affiliate, Morningstar Investment Services LLC, a registered investment advisor and subsidiary of Morningstar Investment Management. Neither Morningstar Investment Management nor Morningstar Investment Services is acting in the capacity of advisor to Amerivest’s clients. Asset Allocation target allocations are subject to change without notice. Morningstar Investment Management establishes the allocations using its proprietary asset classifications. If alternative classification methods are used, the allocations may not meet the asset allocation targets. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Investment Management is not affiliated with Amerivest or TD Ameritrade.
Source: TD Ameritrade Holding Corporation
1 Essential Portfolios is offered through Amerivest Investment Management, LLC (“Amerivest”) , an investment advisory affiliate of TD Ameritrade, Inc. (“TD Ameritrade”) and a subsidiary of TD Ameritrade Holding Corporation.