Product Overview: Merrill Edge Guided Investing
Merrill Edge Guided Investing is an online investment advisory program that seamlessly combines the efficiency of automated technology with the expertise and insights of human financial advisors. Here’s a detailed look at what the product does and its key features:
What it Does
Merrill Edge Guided Investing is designed to help investors manage their portfolios with a balanced approach that leverages both technological automation and human oversight. The program assesses investors’ financial goals, risk tolerance, and time horizon to create personalized investment strategies. These strategies are developed and managed by the Global Wealth and Investment Management Chief Investment Office (CIO) of Merrill Lynch and Bank of America Private Bank, ensuring that the portfolios are aligned with the investors’ objectives and market conditions.
Key Features
Automated and Human-Managed Portfolios
The program uses automated algorithms to select and manage portfolios composed of exchange-traded funds (ETFs) and mutual funds. However, these portfolios are actively monitored and adjusted by experienced investment professionals to ensure they remain aligned with the investor’s goals and to adapt to changing market conditions.
Personalized Investment Strategies
Investors can choose between different portfolio options, including market-tracking portfolios and those focused on environmental, social, and governance (ESG) criteria. The platform tailors the asset allocation based on the investor’s risk profile, financial situation, and time horizon.
Auto Rebalancing
The portfolios are automatically rebalanced as market conditions and preferred asset allocations change. This process is overseen by human advisors to ensure the portfolios remain optimized.
Access to Human Advisors
Merrill Edge Guided Investing offers access to a team of experienced human advisors, which is a unique feature compared to many other robo-advisors. Investors can opt for additional advisor services, such as personalized advice, goal refinement, and periodic portfolio reviews, with the Merrill Guided Investing with an Advisor option.
Account Setup and Management
Setting up an account is straightforward and involves answering an online questionnaire to specify investment goals, financial contributions, and risk tolerance. The platform provides a 24/7 accessible dashboard and regular statements for easy account management.
Additional Features
- External Account Syncing: The platform allows syncing of external accounts to consider them in asset allocation and goal planning.
- Custom Digital Advice: Investors receive customized digital advice based on their specific financial goals and risk profiles.
- ESG Investing Options: Investors can choose portfolios that focus on socially responsible investing (SRI) and ESG criteria.
Fees and Minimums
To start investing with Merrill Edge Guided Investing, there is a minimum balance requirement of $1,000. The annual management fee is 0.45%, which is competitive within the robo-advisor market. For those seeking more personalized advice, the Merrill Guided Investing with an Advisor option requires a $20,000 minimum balance.
Integration with Bank of America
The service is integrated with Bank of America, providing seamless access to banking services and other financial tools, such as the Preferred Rewards program and comprehensive market research.
In summary, Merrill Edge Guided Investing offers a robust investment solution that combines the benefits of automated portfolio management with the expertise and oversight of human financial advisors, making it a versatile and reliable choice for investors seeking a balanced approach to managing their investments.