Name: E*TRADE Core Portfolios
Brand: E*TRADE Core Portfolios

With E*TRADE Core Portfolios, investing is quick and easy. Simply choose a curated portfolio, fund your account, and you're ready to go. Not sure what portfolio fits you? E*TRADE Core Portfolios offers a personality quiz designed to help you decide. Check out our E*TRADE Core Portfolios review below for all the details.

E*TRADE Core Portfolios could be a good fit for you if:

You're looking for a broker with a low minimum and low fees.
You want to choose a portfolio based on risk tolerance.
You'd appreciate access to customer support with an excellent reputation.

Ratings Methodology

E*TRADE Core Portfolios

Learn More

Our Rating:

Rating image, 4.0 out of 5 stars.

4.0/5

Bottom Line

With great access to customer service, low-cost investments, and automatic rebalancing, E*TRADE Core Portfolios is a great option for anyone with at least $500 to start investing.

Fees:

$0 per trade, management fee 0.30%, expense ratio 0.06%-0.12%

Account Minimum:

$500

Learn More for E*TRADE Core Portfolios

On E*TRADE Core Portfolios Secure Website.

Alternatives to consider

We believe in comparing options before committing. Here are two robo-advisors we recommend highly for you to compare side by side with E*TRADE Core Portfolios when deciding which robo-advisor is right for you:

Offer	Stash	M1 Finance
Rating	Rating Rating image, 4.0 out of 5 stars. 4.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Rating Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Commissions	Commissions None	Commissions No commission, trading, or management fees for self-directed accounts. Platform fee of $3 monthly.
Account Minimum	Account Minimum $0	Account Minimum $100 for individual account, $500 for retirement account
Learn More	Learn More for Stash On Stash's Secure Website. Read Full Review	Learn More for M1 Finance On M1 Finance's Secure Website. Read Full Review

M1 is not a robo-advisor and only offers self-directed brokerage services.

Full E*TRADE Core Portfolios review

Most major online stock brokers have introduced their own robo-advisor platforms, and E*TRADE's version is called E*TRADE Core Portfolios. In this E*TRADE Core Portfolios review, we'll take an in-depth look at how this robo-advisor platform works, what it costs, and its features.

How tempted am I to switch brokers to E*TRADE Core Portfolios?

"I like to select my own stocks, so I'm not tempted to switch to E*TRADE Core Portfolios. With E*TRADE Core Portfolios, you select from a series of curated portfolios rather than picking individual stocks. E*TRADE Core Portfolios also offers tax-loss harvesting -- a rare perk. It's not a perk I'm personally interested in, but might be useful for some."

- Cole Tretheway, Motley Fool Money writer with financial expertise in brokerages

Top perks

Customer service

E*TRADE Core Portfolios has a highly rated customer service department and flexible support hours. Clients and potential clients can speak with a specialist weekdays from 8:30 a.m. until 8:30 p.m. EST.

Low account minimum

E*TRADE requires a $500 initial investment, which is on the lower end of the range among the best robo-advisors -- some don't have a minimum deposit requirement, while others require minimums of $5,000 or more.

Low-cost investments

E*TRADE Core Portfolios invests client assets in portfolios made up of low-cost exchange-traded funds, or ETFs, which have underlying expense ratios ranging from 0.06%-0.12%.

Portfolio choice

In addition to its standard customized portfolio options, E*TRADE Core Portfolios allows investors to choose specific focuses, such as tax-advantaged portfolios and strategies that exclusively invest in socially-responsible ETFs.

Automatic rebalancing

Unlike robo-advisors that periodically rebalance portfolios once or twice a year, E*TRADE automatically rebalances portfolios that drift too far from investment targets, typically 5% or more.

Integrates with other E-TRADE accounts

E*TRADE Core Portfolios integrates with other accounts on E*TRADE's platform, which allows clients to see all of their accounts in one place, and facilitates smooth transfers into and out of the E*TRADE Core Portfolios account. Any existing E*TRADE account can also be easily converted into an E*TRADE Core Portfolios account.

Tax-loss harvesting

Unlike some of its competitors, E*TRADE Core Portfolios offers tax-loss harvesting strategies, which can save many investors a lot on their taxes. The platform also offers a portfolio of tax-sensitive ETFs specifically designed for clients who are worried about tax implications. This feature is limited to taxable E*TRADE Core Portfolios accounts.

TIP

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What could be improved

Management fee

E*TRADE Core Portfolios charges a 0.30% annualized management fee, far lower than you'd pay for a human financial advisor, but on the higher end of our favorite robo-advisor platforms.

Access to human advisors

According to E*TRADE's website, "For Core Portfolios clients, interaction with E*TRADE Capital Management will generally be limited to the web-based interface." You can speak with a Core Portfolios specialist, but this is more along the lines of technical support, not financial advice.

How it works

How E*TRADE Core Portfolios works: E*TRADE's application process is seamless, making it a great broker for beginners who are filling out a new brokerage account application for the first time. New clients first fill out a quick but thorough questionnaire to help E*TRADE assess their risk tolerance and investment goals. Next, clients see a recommended portfolio, plus an alternative. For example, E*TRADE might think you have a high risk tolerance based on the questionnaire, but if the recommended portfolio seems too risky, there's a second option that might be a better fit.

Once you've accepted a portfolio option, chosen customizations, and made your opening deposit, you can start investing with a simple click of the mouse. E*TRADE monitors portfolios and rebalances them automatically to make sure the target investment allocation is maintained, and accounts integrate nicely with other E*TRADE brokerage and bank accounts.

Services offered

Some customization options including tax-advantaged investments, investing exclusively in socially-responsible companies, or using so-called "Smart Beta" ETFs to potentially boost returns. You can also open an E*TRADE Core Portfolios account as a standard individual or joint brokerage account, a custodial account, or an individual retirement account (IRA).

Pricing and fees

Like most robo-advisors, E*TRADE Core Portfolios has two types of ongoing investment fees. You'll pay a flat management fee to E*TRADE, equal to 0.30% of your assets per year. This translates into $3 for every $1,000 in your account. In addition, your portfolio's investment funds (exchange-traded funds, or ETFs) have their own fees, known as expense ratios.

In terms of all-in pricing, E*TRADE is in the middle of the pack when it comes to our favorite robo-advisors. The account management fee is on the higher end, while its ETFs are quite reasonably priced.

SERVICE/ITEM	E*TRADE Core Portfolios COST
Account management fee	0.30%
Investment fund fees	0.06%-0.12%
All-in fees	0.36%-0.42%
Other account charges	$75 transfer-out fee

Data source: E*TRADE

Customer service

There are two types of support that robo-advisor clients might need -- investment advice from a human being, and help with technical issues. Here's how E*TRADE Core Portfolios stacks up.

When it comes to technical support, E*TRADE Core Portfolios shines. It has a highly rated customer service department, and the hours are flexible. You can call and talk to an E*TRADE Core Portfolios specialist anytime from 8:30 a.m. until 8:30 p.m. EST.

On the other hand, E*TRADE Core Portfolios clients generally don't have access to human financial advisors. Some rival robo-advisors provide access to financial planners who can provide guidance if, say, a client wants to save to buy a house. E*TRADE Core Portfolios clients don't get this level of advice.

Our ratings methodology

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology

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E*TRADE Core Portfolios Review: Tax-Loss Harvesting Robot

Alternatives to consider

Full E*TRADE Core Portfolios review

Top perks

Customer service

Low account minimum

Low-cost investments

Portfolio choice

Automatic rebalancing

Integrates with other E-TRADE accounts

Tax-loss harvesting

Buying your first stocks: Do it the smart way

What could be improved

Management fee

Access to human advisors

How it works

Services offered

Pricing and fees

Customer service

Read more

Our ratings methodology