Table of Contents
Introduction
If you are looking for ways to grow your wealth through investing, then there are numerous options available to individuals. Two of the most common are Schwab Intelligent Portfolios and Merrill Edge’s Essential Portfolios. Both platforms offer managed investment services in automaton, which makes the management of investments easier for the investor. In this article, I will compare Schwab Intelligent Portfolios with Merrill Edge’s Essential Portfolios to assist you in identifying which of the two is the best for you.
What are Schwab Intelligent Portfolios and Merrill Edge's Essential Portfolios?
Schwab Intelligent Portfolios is a robo-advisor offered by Charles Schwab, one of the biggest brokerage firms in the United States of America. It uses technology and the advice of professionals to help its clients diversify and manage their investments. The platform provides a number of investment products including stocks, bonds and exchange traded funds (ETFs).
Merrill Edge’s Essential Portfolios is a robo-advisor offered by Merrill Edge, the online brokerage subsidiary of Bank of America. Like the other platforms, this one also employs technology to manage and build investment portfolios for the client. Essential Portfolios offers a number of ETFs for investment, depending on the risk appetite and investment goals of the investor.
Key Features and Benefits
Schwab Intelligent Portfolios
- A number of Investment Options: Schwab Intelligent Portfolios offers a wide range of assets which include stocks, bonds and ETFs. This variety enables the investor to come up with a portfolio that is suitable for his or her investment goals.
- Advisory Fees Nothing to pay: The other great feature of Schwab Intelligent Portfolios is that it does not charge advisory fees. This means that investors can get professional portfolio management without having to pay for it.
- Tax-Loss Harvesting: The platform tracks your investments and sells the losing positions to offset gains, which can reduce your taxable income. This is especially useful for people with a high net worth.
Merrill Edge’s Essential Portfolios:
- Simplified Investment Process: This is because Essential Portfolios has been built with the goal of keeping things simple when it comes to investing. The program asks the investor questions about their risk tolerance and investment goals, and then suggests a portfolio that fits the investor’s profile.
- Access to Merrill Lynch Research: Being a part of Bank of America, Merrill Edge provides its clients with access to research and analysis provided by Merrill Lynch which can be useful for those who want to know more about the market and make informed investment decisions.
- Competitive Pricing: While Schwab Intelligent Portfolios does not charge advisory fees, Essential Portfolios has a competitive pricing model. The platform imposes an annual program fee on the account balance and the fee is usually lower than that of traditional advisors.
Performance and Returns
To compare the results of Schwab Intelligent Portfolios and Merrill Edge’s Essential Portfolios, remember that past performance is not indicative of future performance. nulltheless, the performance in the past can be helpful.
According to the Backend Benchmarking review, Schwab Intelligent Portfolios outshined Merrill Edge’s Essential Portfolios in one and three-year returns. The results showed that average annual returns were higher for Schwab Intelligent Portfolios than the other platform.
It is important to appreciate that investment results are affected by market movements and individual preferences. For this reason, when looking at the performance of these platforms, you should take other factors into consideration, such as the risk you are willing to take and your investment goals.
Customer Service and Support
When choosing an investment platform, customer service is an important factor that should not be forgotten. Both Schwab Intelligent Portfolios and Merrill Edge’s Essential Portfolios offer phone, email, and online chat customer support.
Schwab Intelligent Portfolios is renowned for its customer service as it offers its clients quick and efficient service from a dedicated team of professionals who are willing to assist the clients with their investment queries. The platform also provides educational material and tools that can assist investors in making informed investment decisions.
On the other hand, Merrill Edge’s Essential Portfolios has a good customer support which includes advisors who are willing to help with any inquiry. Also, the platform offers the access to Bank of America’s large network of branches which is useful for those who prefer to deal with people directly.
Conclusion:
Both Schwab Intelligent Portfolios and Merrill Edge’s Essential Portfolios are robotic advisory services that help people achieve their financial goals through automation. The differences between the two are that Schwab Intelligent Portfolios has a wide range of investment choices, a tax-loss harvesting strategy, and no advisory fees. On the other hand, Merrill Edge’s Essential Portfolios has a simple approach, a connection to Merrill Lynch research, and affordable charges.
To make the comparison between these two platforms, you should first understand your investment objectives, risk appetite and preferences. It is also advisable to seek the advice of a financial advisor or to find out more information to ensure that the chosen platform is suitable for your needs. In the end, it will depend on your situation and preferences whether you select Schwab Intelligent Portfolios or Merrill Edge’s Essential Portfolios. Analyzing the characteristics, advantages, productivity, and customer relations of each platform will help you make a smart decision for the future.
