J.P. Morgan Automated Investing Review – Robo Advisor Service from Chase
The J.P. Morgan Automated Investing Review - Robo Advisor Service from Chase is an easy and automatic way to invest with automatic portfolio rebalancing.
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As robo-advisor services grow in popularity, millions of Americans realize investing isn’t the same as active trading. You don’t need to give a broker buy-and-sell orders over the phone to grow your wealth from the stock market. With a robo advisor, you can take a completely hands-off, long-term approach to investing. Sit back, relax, and let algorithms manage your portfolio.
You Invest Portfolios by J.P. Morgan is a robo advisor that lets customers “set it and forget it” when it comes to investing. It’s a particularly good fit for existing Chase customers because it lets you bank and invest from the same mobile app.
In this review of You Invest Portfolios by J.P. Morgan, we’ll cover what this service offers so you can decide whether it’s a good fit for you.
You Invest Portfolios by J.P. Morgan Review
You Invest Portfolios by J.P. Morgan
You Invest Portfolios by J.P. Morgan is a robo advisor that seeks to make investing easy and hands-off. Once you’ve made your initial investment of $500, you can sit back and let the service do the work of building and maintaining your portfolio. It’s about as simple as investing comes, but some might find the annual fee expensive.
You Invest Portfolios Features
| You Invest by J.P. Morgan | Features |
|---|---|
| Minimum Investment | $500 |
| Commissions & Fees | 0.35% |
| Types of Investments | Stock and Bond Smart-Beta Funds |
| Types of Accounts | Individual, Traditional IRA, Roth IRA |
| Asset Allocation | Managed Portfolios |
| Automatic Portfolio Rebalancing | Yes, Daily |
| Human Advisor Availability | None |
| Tax-Loss Harvesting | No |
| Banking Services | Integration with Chase Bank Accounts |
| App Availability | iOS, Android, Mobile Optimized Website |
| Customer Service | Email, Phone |
| FINRA CRD Number | #79 |
| SEC Registration Number | #801-3702, #8-35008 |
Additional Features
- You Invest Trade. If you’d rather try DIY investing, you may prefer You Invest’s stock brokerage service instead. You Invest Trade charges no commissions on most stock and fund trades and is a good fit for beginning investors looking to learn the ropes.
- Automatic Rebalancing. Unlike some robo advisors that require a minimum investment, You Invest Portfolios will rebalance your portfolio no matter how much money is in it.
- Chase Integrated App. You Invest fully integrates with the Chase app associated with bank and credit card accounts. If you’re already a Chase customer, it’s a handy one-stop shop for all your financial needs.
What Is You Invest Portfolios?
You Invest Portfolios is the robo-advisor service offered by JPMorgan Chase, the largest bank in the United States and the sixth-largest bank in the world. The company resulted from several mergers and acquisitions over the last 25 years, including J.P. Morgan & Co., Chase Manhattan Bank, Bear Stearns, and Washington Mutual.
You Invest Portfolios is the sibling of You Invest Trade, a commission-free online stock broker. However, unlike You Invest Trade, You Invest Portfolios does the heavy lifting for you. You answer a questionnaire about your goals, time frame, and risk tolerance, and the service creates and maintains a portfolio tailored to your needs.
Although the name J.P. Morgan might conjure the image of a man with a top hat and pocket watch, You Invest Portfolios by J.P. Morgan is anything but old-fashioned. You can manage your account entirely via mobile app. One of the biggest “plusses” of this service is its integration with any Chase bank or credit card accounts you might have. You can view all of your financial and investing accounts from one dashboard.
How Does You Invest Portfolios Work?
Like all robo advisors, You Invest Portfolios starts by asking about your investment goals, time horizon, and risk tolerance. It will then select one of four risk profiles for your portfolio: Aggressive, Growth, Moderate, or Conservative. However, your risk profile isn’t set in stone; you can move one level up or down the scale (for example, from Growth to Aggressive or from Moderate to Conservative).
You’ll need at least $500 to open an account. After opening, you’ll need to keep a balance of at least $250 to maintain your account.
Portfolio Holdings
No matter what risk profile You Invest Portfolios assigns you, your account will consist of J.P. Morgan exchange-traded funds (ETFs). The ETFs You Invest by J.P. Morgan selects are smart-beta funds. This means the funds are customizable, rather than just tracking an underlying index.
The objective of ETF investing is to reduce risk by holding a variety of stocks, bonds, and other exchange-traded securities. Most robo-advisors rely on ETFs for their portfolio makeup. However, a few, including Empower (formerly Personal Capital), let investors select individual stocks.
You Invest robo-advisor portfolios offer limited customization options. However, you can choose to exclude up to three eligible ETFs from your portfolio. You can update this preference at any time.
You Invest Portfolios’ algorithms check your portfolio daily and adjust your allocation as needed to keep your investments on track. If you make any changes to your risk profile, your holdings will be automatically reconsidered. Other rebalance triggers include market fluctuations and large deposits or withdrawals.
If you indicate your purpose for investing is retirement, your You Invest Portfolio will also use an asset allocation strategy referred to as a “glide path” strategy. This means your investment mix will change as you hold your portfolio over time. In general, your portfolio will shed riskier investments as you age and your risk tolerance decreases.
You Invest Portfolios Fees
This is where You Invest Portfolios loses its shine. The robo advisor charges a 0.35% annual management fee, which is on the high end. For comparison, you can open a Wealthfront or Betterment account for only 0.25% annually and receive many more extra services and features that You Invest doesn’t include. If bells and whistles aren’t important to you, Vanguard’s robo advisor charges only 0.15%. And you can even choose an advisory fee-free managed account at Ally Invest.
Keep in mind that, with most robo-investing services, you’ll also be responsible for ETF expense ratios. However, if you have a You Invest Portfolios account and pay ETF expenses to J.P. Morgan, they will offset the 0.35% advisory fee. Keep this in mind when comparing the true costs of robo advisors.
You Invest Portfolios Pros & Cons
- Ease of Use. You Invest Portfolios is incredibly easy to use. Answer a quick questionnaire, and the service does the rest.
- Glide Path Strategy. If you’re concerned about investing for retirement, You Invest Portfolios’ glide path strategy can optimize your asset allocation over time. As retirement approaches, your portfolio will adjust so you’re not taking costly risks.
- Automatic Rebalancing. The asset allocations of You Invest Portfolios are considered daily and adjusted as needed.
- Chase App. If you already have a Chase bank or credit card account, you’ve probably already used the company’s integrated mobile app. Now you can add your You Invest Portfolios account to the same dashboard, making it a one-stop shop for everything financial.
- High Management Fees. At 0.35%, You Invest Portfolios’ annual fees are a bit steep. However, J.P. Morgan may deduct any fund expenses from your annual fees. Always check the fine print when comparing robo-advisor fees to find the best deal for you.
- No Tax-Loss Harvesting. Unlike many robo-advisors that offer this tax-saving feature, You Invest Portfolios doesn’t offer it.
- Not Many Features. Some other robo advisors offer extra tools and features, including budgeting services. That’s not the case here, which makes the higher fee harder to justify.
Conclusion
Who is the ideal You Invest Portfolios client? If you are a total investing newbie with no interest in DIYing – and maybe even already have a Chase bank or credit card account – this could be a great fit. The robo advisor makes investing easy, and its streamlined, integrated app gives you a quick view of your account.
However, if you’d rather have extra features to help manage your money, it’s worth checking out competitors such as Wealthfront and Betterment. Both services offer plenty of personal finance tools and lower management fees, too.
