If you’re looking for expert guidance to navigate market volatility and achieve your long-term financial goals, a managed investment account can offer personalized portfolio management by experienced professionals.
These accounts typically come with dedicated managers who make investment decisions tailored to your needs, risk tolerance and objectives. The hands-on approach can optimize returns, manage risk and offer benefits like tax efficiency and access to a broader range of investment opportunities.
This article will discuss the key features, benefits and considerations for choosing the best managed investment account that aligns with your financial aspirations.
Best Managed Investment Accounts
How We Chose the Best Managed Investment Accounts
We focused on competitive and transparent fee structures, investment strategies offering broad diversification, and advanced tax efficiency features like automated tax-loss harvesting. We also considered the level of human support available, from pure robo-advisers to hybrid models with access to financial planners.
Best Managed Investment Accounts
Vanguard Personal Advisor Services — Best for Low-Cost Hybrid Adviser
Vanguard Personal Advisor Services offers a blend of sophisticated automated portfolio management and personalized guidance from human financial advisers. Leveraging Vanguard’s low-cost index funds and exchange-traded funds (ETFs), investors can build diversified portfolios aligned with their financial goals, such as retirement planning or saving for a major purchase, at a cost-effective rate. The hybrid approach caters to those who appreciate the efficiency of technology but want the reassurance and tailored advice of a professional.
Key Features:
- Fees: Vanguard charges a low annual advisory fee, typically 0.3% to 0.31% for an all-index portfolio. There are no commissions on the underlying Vanguard funds.
- Account Minimums: A minimum of $50,000 is generally required to enroll in Vanguard Personal Advisor Services. Higher tiers of service, such as Personal Advisor Select, have higher minimums.
- Investment Access: Portfolios are built with a diversified mix of Vanguard’s low-cost ETFs and mutual funds, which span broad U.S. and international stock and bond markets.
- Platform Experience: The platform provides a user-friendly desktop experience, allowing investors to set goals, track progress and view their portfolio allocations. The mobile app allows for basic account tracking and portfolio overviews.
- Tools/Education Highlights: Vanguard provides online tools and calculators, including retirement income calculators, college cost projectors and investor questionnaires to determine risk tolerance. For Personal Advisor Services clients, access to human advisers allows in-depth discussions on financial planning topics like tax-efficient investing, withdrawal strategies and estate planning.
- Drawbacks: For some investors, the main drawback is the $50,000 account minimum compared to pure robo-advisers. Although Vanguard offers human advisers, 24/7 customer support is not available. Investment options are limited to Vanguard’s proprietary funds, which may not appeal to people who want a wider array of individual stocks or actively managed funds from other providers. Automated tax-loss harvesting is not a core offering.
Who It’s Best For: Cost-conscious investors with at least $50,000 to invest who want professional portfolio management, long-term goal-based planning and access to human financial advisers without paying traditional advisory fees.
Fidelity Go — Best for Low Minimums
Fidelity Go distinguishes itself with a low barrier to entry and a fee structure that makes it attractive for those just starting their investment journey. As Fidelity’s robo-adviser offering, it provides automated portfolio management based on your financial goals, time horizon and risk tolerance. It’s designed for investors who want a hands-off approach to growing their wealth.
Key Features:
- Fees: Fidelity Go doesn’t charge an advisory fee for balances less than $25,000. For balances of $25,000 or more, an annual advisory fee of 0.35% is applied to the entire account balance. There are no trading fees, transaction fees or rebalancing fees. The underlying Fidelity Flex mutual funds have zero expense ratios, so you won’t pay additional fees for holding them.
- Account Minimums: There is no minimum to open an account, although a $10 minimum is required to start investing. The low threshold makes it appealing for new investors or those with smaller amounts to get started.
- Investment Access: Portfolios are built using a selection of Fidelity Flex mutual funds, which invest across domestic and foreign stocks, bonds, and short-term investments. The funds are proprietary to Fidelity and are designed to provide diversified exposure across various asset classes.
- Platform Experience: Fidelity Go is integrated into the main Fidelity platform and mobile app to offer a streamlined experience for monitoring your portfolio, tracking progress toward goals and making additional contributions. The interface is intuitive and easy to navigate.
- Tools/Education Highlights: Fidelity Go customers have access to Fidelity’s extensive online planning tools and educational resources. For accounts with a balance of $25,000 or more, clients gain access to unlimited one-on-one coaching calls with Fidelity’s trained advisers for personalized guidance on topics like budgeting, debt management and retirement planning.
- Drawbacks: Fidelity Go does not offer automated tax-loss harvesting. It offers access to human advisors for larger balances, but it’s not a full-service financial planning relationship. Investment options are limited to Fidelity’s Flex funds, but some investors may want a wider range of ETFs or individual securities.
Who It’s Best For: New or hands-off investors with modest balances who prioritize low costs, simplicity and the convenience of automated portfolio management with the benefit of human coaching as their assets grow.
Charles Schwab Intelligent Portfolios — Best for Free Automated Investing
Charles Schwab Intelligent Portfolios offers its basic service for free, making it an attractive option for cost-conscious investors who want diversified, professionally managed portfolios. If you’re looking for a human touch, Schwab also provides Schwab Intelligent Portfolios Premium, which combines automated management with unlimited access to certified financial planners (CFPs) for a fee. The service builds portfolios using a mix of Schwab’s low-cost ETFs and third-party ETFs to ensure broad market access.
Key Features:
- Fees: Schwab’s basic Intelligent Portfolios don’t charge an advisory fee. Investors only pay the underlying expense ratios of the ETFs in the portfolio, which range from 0.02% to 0.16% with a weighted average around 0.13%. Schwab makes money on the service by sweeping a portion of the portfolio’s cash allocation into Federal Deposit Insurance Corp. (FDIC)-insured deposit accounts at Charles Schwab Bank, where it earns revenue from the spread between the interest earned and paid.
Schwab Intelligent Portfolios Premium charges a one-time $300 initial planning fee and a $30 monthly advisory fee, which covers unlimited access to a CFP and a comprehensive digital financial plan, in addition to automated portfolio management
- Account Minimums: A $5,000 minimum is required to open a basic account. The premium account requires a $25,000 minimum.
- Investment Access: Portfolios are built using a range of low-cost ETFs covering various asset classes, including U.S. and international stocks, bonds, real estate, and commodities, allowing for significant diversification.
- Platform Experience: Schwab offers a user-friendly platform accessible via desktop and a mobile app. The interface provides clear views of portfolio performance, asset allocation and progress toward financial goals. Automated rebalancing and tax-loss harvesting are integrated into eligible accounts.
- Tools/Education Highlights: Schwab provides educational content, market insights and various financial calculators. Premium clients have access to a CFP, which allows for personalized financial planning discussions covering a range of topics beyond investments, including budgeting, debt, college savings and retirement planning. Tax-loss harvesting is available for taxable accounts with $50,000 or more.
- Drawbacks: Tax-loss harvesting is only available for taxable accounts with at least $50,000. Direct customization of individual stock or specific mutual fund choices is not available.
Who It’s Best For: Cost-conscious investors with at least $5,000 who want a fully automated, diversified portfolio without advisory fees. The premium package is ideal for investors with at least $25,000 who want the benefits of automated investing combined with ongoing, unlimited access to a CFP for comprehensive financial advice.
Merrill Guided Investing — Best for Human-Backed Portfolios
Merrill Guided Investing balances automated efficiency with the human insights of Merrill’s Chief Investment Office. Unlike pure robo-advisers, Merrill Guided Investing’s portfolios are actively managed by a team of professionals. It also offers an advantage for existing customers of parent company Bank of America through integrated banking and potential fee discounts via its Preferred Rewards program. Investors can choose between a fully online experience or opt for access to a financial adviser for more personalized guidance.
Key Features:
- Fees: The online-only version has an annual program fee of 0.45% of assets under management. Investing with an adviser comes with an annual program fee of 0.85% of assets under management.
- Account Minimums: For online only, a minimum of $1,000 is required for growth-focused strategies and $50,000 for income-focused strategies. For investing with an adviser, a minimum of $20,000 is required for growth-focused strategies and $50,000 for income-focused strategies.
- Investment Access: Portfolios are built with low-cost ETFs across various asset classes, including U.S. and international stocks, bonds, commodities, and real estate. Merrill also offers socially responsible investing portfolio options. The portfolios are actively managed by Merrill’s chief investment officer and team.
- Platform Experience: Merrill Guided Investing is integrated into the broader Merrill Edge online platform and mobile app to offer a cohesive experience for managing investments alongside Bank of America accounts. The platform provides clear portfolio tracking and goal monitoring.
- Tools and Education: The platform offers online tools, calculators and educational resources, which cover various financial planning topics. For accounts with an adviser, clients benefit from discussions and financial planning support. Merrill also provides 24/7 customer service.
- Drawbacks: The fees are higher than many of its competitors, and it doesn’t offer automated tax-loss harvesting.
Who It’s Best For: Investors who value professional, actively managed portfolios and appreciate the convenience of integrating their investments with existing Bank of America banking relationships.
Wealthfront — Best for Hands-Off Investors
Wealthfront’s automated investing platform emphasizes tax efficiency. It caters to investors who prefer a hands-off approach to wealth management, but still want to maximize their after-tax returns. Features include automated tax-loss harvesting and diversified ETF portfolios that deliver optimized investment performance through technology rather than human financial advisers.
Key Features:
- Fees: Wealthfront charges an annual advisory fee of 0.25% of assets under management for most automated accounts. There are no trading commissions or fees for withdrawals, minimums or transfers. For its Stock Investing Account, there are no advisory fees or commissions.
- Account Minimums: A $500 minimum is required to open an automated investing account. Wealthfront also offers a high-yield cash account with a $1 minimum, which can integrate with investing.
- Investment Access: Wealthfront builds globally diverse portfolios using low-cost ETFs across up to 17 asset classes, including U.S. stocks, foreign stocks, emerging markets and corporate bonds. It also offers specialized portfolios such as socially responsible investing and an automated bond ladder for short-term goals. For higher balances, it provides direct indexing, which allows you to own individual stocks that mimic an index like the S&P 500.
- Platform Experience: The user interface on both the desktop platform and mobile app are designed for ease of use, allowing clients to quickly track portfolio performance, monitor goals and manage their cash. The Self-Driving Money feature allows automated bill payments and direct deposits to simplify financial management.
- Tools/Education Highlights: Wealthfront’s analytical tools help users project their financial future, analyze scenarios like buying a home or retirement, and receive personalized recommendations. The platform offers advanced tax-loss harvesting, which monitors opportunities daily to reduce taxable gains.
- Drawbacks: Wealthfront does not offer access to human financial advisers, which can be a drawback for investors who prefer personalized advice and direct consultation with a CFP.
Who It’s Best For: Tech-savvy, hands-off investors who prioritize maximizing after-tax returns through tax optimization strategies like automated tax-loss harvesting and who are comfortable without interacting with a human financial adviser.
Choosing the Best Managed Investment Accounts
Selecting a managed investment account depends on your financial situation and preferences.
Vanguard Personal Advisor Services excels for those seeking low-cost hybrid advice with a human touch for goal-based planning. Fidelity Go is ideal for new investors and those with small balances, offering accessible automated investing. Charles Schwab Intelligent Portfolios provides a free automated option, with premium access to CFPs for more comprehensive needs. Merrill Guided Investing stands out for its human-backed, actively managed portfolios, particularly benefiting existing Bank of America Clients. Wealthfront appeals to tech-savvy, hands-off investors prioritizing advanced tax optimization.
Consider your desired level of human interaction, fee sensitivity, account minimums and financial goals to find the right platform for you.
Frequently Asked Questions
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A managed investment account is an investment portfolio overseen by a professional manager who makes decisions based on your financial goals, risk tolerance and timeline. It can include human advisers, robo-advisers or a hybrid approach to tailor your investments.
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Managed accounts can be worth the fees if you want professional oversight, help with diversification, tax strategies like tax-loss harvesting or personalized advice. For investors who prefer a hands-off approach or lack the time or expertise to manage investments themselves, the cost can provide valuable peace of mind.
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Robo-advisers use algorithms to build and manage portfolios automatically, often at lower costs, while traditional managed accounts typically include personalized advice from human advisers. Hybrid options combine both by offering automated portfolios with access to financial planners for tailored guidance.
