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TD Ameritrade’s Robo Platforms Near $16B

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TD Ameritrade’s Essential Portfolios and Selective Portfolios digital advice platforms have nearly $16 billion in assets under management as of June 30, the firm announced on Tuesday.

While AUM on TD Ameritrade’s robo platforms pale in comparison to other incumbents’ offerings (like Vanguard, which at the end of the first half of 2017 had $83 billion), it’s still comfortably ahead of Betterment’s $10 billion or Wealthfront’s $6.7 billion.

(Related:  Vanguard Is Way Ahead in the Robo Race)

Essential Portfolios, introduced in January, is TD Ameritrade’s lower-service solution. It features low-cost automated planning and “light human support,” including on-demand phone support from portfolio specialists. For a minimum investment of $5,000, investors on the platform can choose from five risk-based portfolios for a 0.3% fee.

TD Ameritrade recently introduced a personality insights tool to the Essential Portfolios platform that lets investors link their Facebook accounts and get a personality profile.

Selective Portfolios is a more robust offering. It offers 15 portfolios across five strategies, and gives investors access to high-touch, in-person and phone-based support.

Investors have to meet a higher minimum — $25,000 — and fees start at 0.75%.

The portfolios on both platforms comprise nonproprietary ETFs recommended by Morningstar Investment Management. Investors on the Selective Portfolios platform also have access to mutual funds.

Selective Portfolios has approximately $15 billion in total assets under management, compared to Essential Portfolios’ $800 million. Selective Portfolios initially launched in 2004 as Amerivest. It and was rebranded last year.

The firm also announced that it will introduce tax-loss harvesting to clients on both platforms this fall.

— Read Ric Edelman: Advisors’ Biggest Tech Threat Isn’t Robos on ThinkAdvisor.


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