Product Overview of Titan Invest
Titan Invest is an innovative investment platform that combines the benefits of sophisticated hedge fund strategies with the accessibility and affordability of a robo-advisor. Here’s a detailed look at what Titan Invest does and its key features:
Investment Approach
Titan Invest deviates from the traditional robo-advisor model by actively managing investments rather than relying on passive index funds or ETFs. The platform uses a team of investment professionals, many with hedge fund experience, to select and manage a portfolio of individual stocks. This approach aims to deliver higher returns over the long term by identifying high-quality, top-performing companies.
Portfolio Options
Titan offers several actively managed investment strategies, including:
- Titan Flagship: Focuses on large-cap U.S. growth companies, aiming to outperform the S&P 500 benchmark.
- Titan Opportunities: Invests in small and mid-size U.S. companies, offering higher potential returns but also higher risk. This portfolio is available to investors with at least $10,000 invested.
- Titan Offshore: Invests in non-U.S. based companies in emerging and developed markets globally.
- Titan Crypto: An actively managed portfolio focused on crypto assets, with regular rebalancing and tactical trading.
- Additional strategies include ARK Venture (venture capital), Apollo Diversified Real Estate, and two private credit strategies.
Key Features
Portfolio Management
Titan’s portfolios are composed of around 20 individually selected stocks, updated quarterly based on public filings from top-performing hedge funds. This approach allows for direct ownership of the stocks in the portfolio, rather than holding shares in an ETF or mutual fund.
Rebalancing and Hedging
Portfolios are rebalanced quarterly to maintain optimal asset allocation. For actively managed stock strategies, rebalancing occurs when the weights deviate significantly. Titan also employs hedging strategies using inverse S&P 500 ETFs to minimize losses during market downturns.
Fractional Shares
Titan allows the purchase of fractional shares, enabling investors to put all their money to work immediately, regardless of the amount invested. Dividends are reinvested in fractional shares on a quarterly basis.
Smart Cash
Titan’s cash management feature, Smart Cash, automatically moves uninvested cash into money market funds with the highest after-tax yield available, currently offering a 4.78% gross yield.
Tax Strategy
While Titan does not have a specific tax strategy, its all-stock portfolios naturally isolate individual investments, allowing for tax harvesting opportunities. The platform is also planning to launch new tax-loss harvesting features.
Access to Advisors
Investors have unlimited access to licensed advisors who can provide personalized investment advice.
Account Types and Minimums
Titan supports individual taxable investment accounts, Traditional, Roth, and inherited/beneficiary IRAs. The minimum initial investment is $100, although some strategies like Titan Opportunities require a $10,000 minimum.
Liquidity and Withdrawals
Investors can withdraw funds at any time without lock-up periods or early withdrawal fees. Instant deposits are also available, allowing immediate investment of funds.
Integrations and Reporting
Titan Invest accounts can be linked with popular online services like Personal Capital and Mint. The platform provides real-time reporting, enabling investors to check the value of their portfolio at any time through the mobile app.
Fees and Pricing
Titan charges an annual advisory fee of 1% for accounts over $10,000. For accounts under $10,000, the fee is $5 per month. There are no performance fees, trading fees, or early withdrawal fees.
In summary, Titan Invest offers a unique blend of active investment management, typically reserved for high net worth individuals, but made accessible to a broader range of investors. Its focus on individual stock selection, hedging strategies, and personalized advice sets it apart from traditional robo-advisors.