This is likely to appeal to those investors with small portfolios or who direct small amounts of money regularly to ETFs, because given the commissions typically charged, that can render them uneconomical. Further, such commissions can deter investors from rebalancing their portfolios.
For large portfolios, on the other hand, the low cost of ETFs and their tax savings typically offset these charges.
However, Amerivest has an annual fee of 35 basis points on assets of $100,000 or more, 50 basis points on accounts between $20,000 and $99,999, and 2.95% or $100 a year, whichever is less, on accounts of $20,000 or less.
The ETF center also can recommend various investment choices, after asking an individual questions about their financial goals, risk tolerance, time frame and amount of assets. However, it is up to the investor to accept or reject these recommendations and to rebalance their portfolio periodically.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.