Product Overview: Ally Invest Managed Portfolios
Ally Invest Managed Portfolios offer a streamlined and automated investment solution, designed to provide a hands-off yet highly managed investment experience. Here’s a detailed look at what the product does and its key features.
What it Does
Ally Invest Managed Portfolios utilize advanced algorithms and human expertise to create and manage diversified investment portfolios tailored to individual investors’ goals, risk tolerance, and time horizons. Upon signing up, users take a brief survey to assess their investment objectives, risk comfort level, and investment timeline. Based on this information, the platform recommends a suitable portfolio from four available options: Core, Income, Tax-Optimized, and Socially Responsible.
Key Features
Portfolio Options
- Core Portfolio: A highly diversified mix of domestic, international, and fixed-income assets, adjustable to various risk tolerances.
- Income Portfolio: Focused on dividend yield and income with a lesser risk profile.
- Tax-Optimized Portfolio: Designed to minimize tax liabilities.
- Socially Responsible Portfolio: Aligns investments with ethical and social values.
Portfolio Management
- Automatic Rebalancing: Portfolios are monitored daily and rebalanced as needed to ensure they remain aligned with the investor’s target allocation, all without additional fees.
- Cash-Enhanced and Market-Focused Portfolios: Users can choose between a Cash-Enhanced portfolio with no advisory fees (30% of the portfolio held in cash) or a Market-Focused portfolio with a 0.30% annual advisory fee (about 2% held in cash). Both options earn interest on the cash component.
Investment Selection
- Portfolios are composed of exchange-traded funds (ETFs) covering 17 asset classes, with an average expense ratio of 0.05% to 0.07%. Ally Invest does not use proprietary funds, ensuring a broad and unbiased selection of ETFs.
Goal Tracking and Planning
- The Goal Tracker tool allows users to set specific investment goals and simulate various scenarios to see how different inputs (such as monthly deposits or asset allocations) impact their goal progress.
Account Support
- Ally Invest Managed Portfolios support a variety of account types, including taxable brokerage accounts (individual, joint, and custodial), and various IRAs (traditional, rollover, and Roth).
Customer Support
- Users have access to 24/7 customer support via phone, chat, or email, ensuring help is available whenever needed.
Mobile and Online Experience
- The online interface is user-friendly, allowing easy tracking of portfolio performance and fee details. However, the mobile app is more limited, providing only a summary view of the portfolio.
Additional Benefits
- Low Account Minimum: The initial minimum deposit is $100, making it accessible to a wide range of investors.
- Tax Efficiency: Portfolios are designed to be tax-efficient, although tax loss harvesting is not currently offered.
Overall, Ally Invest Managed Portfolios offer a convenient, low-cost, and highly managed investment solution that is particularly beneficial for those seeking a hands-off approach to investing, especially loyal Ally clients who can integrate their banking and investing services seamlessly.