Is Ellevest Worth It Compared to Other Robo-Advisors

Ellevest is a robo-advisor that offers low-cost investment management and financial planning tools specifically designed for women. It charges a 0.50% management fee, which is lower than many other robo-advisors.

One of the key benefits of Ellevest is its focus on long-term goals, such as retirement savings. This is reflected in its investment strategy, which prioritizes steady growth over short-term gains.

Ellevest also offers a range of investment portfolios with varying levels of risk, allowing users to choose the one that best aligns with their financial goals and risk tolerance.

Ellevest offers a goal-focused investing approach that lets you start investing with no minimums to open an account. This can be a great option for those who want to dip their toes into investing without a big upfront commitment.

One of the standout features of Ellevest is its portfolio selection, which is geared towards the investment needs of women. This is a great option for women who want to invest with a company that understands their unique financial circumstances.

Ellevest's low monthly membership fee is another perk. For a small monthly fee, you can access their investing tools and resources. This can be a great option for those who want to invest without breaking the bank.

However, Ellevest does have some limitations. For one, there's limited account customization and investment options. This might be a drawback for those who want more control over their investments.

Another con of Ellevest is the lack of tax-loss harvesting. While private wealth clients can consult an advisor, this might not be an option for everyone. Additionally, Ellevest offers 0% APY on uninvested cash, which might not be the best option for those who want to earn interest on their cash.

Here are some key pros and cons of Ellevest in a nutshell:

Overall, Ellevest can be a great option for those who want a low-cost, goal-focused investing approach. However, it's worth considering the limitations and doing some extra research before making a decision.

Setting up an account at Ellevest is a quick and easy process that can be done entirely online. You choose an investing goal and Ellevest makes a portfolio recommendation based on your personal details.

There are only two types of accounts offered: Online investing with a $0 minimum to open an account, and Private wealth management with a $1 million minimum to open an account.

Ellevest now offers only one type of account for investors with less than $1 million, called the Ellevest Plan for online investing. This plan offers up to five goal-specific accounts with portfolios created to suit your financial goals for a low fee of $12 per month.

Here are the key features of the Ellevest Plan:

Setting up an account at Ellevest is quick and easy, and can be done entirely online. You'll choose an investing goal and Ellevest will make a portfolio recommendation based on your personal details.

Ellevest offers two types of accounts: Online investing with a $0 minimum to open, and Private wealth management with a $1 million minimum to open.

The online investing account, also known as the Ellevest Plan, offers a low fee of $12 per month and includes features such as up to five goal-specific accounts with portfolios created to suit your financial goals, retirement planning, tax minimization strategies, and automatic rebalancing.

Here are the key features of the Ellevest Plan:

Ellevest works to keep your account fully invested, with minimal cash residuals.

Ellevest offers a straightforward and no-frills approach to investing. You can set up a new account entirely online, choosing an investing goal and receiving a portfolio recommendation based on your personal details.

There are only two types of accounts offered: Online investing with a $0 minimum to open an account, and Private wealth management with a $1 million minimum to open an account.

The Online investing account offers a low fee of $12 per month, and comes with features such as up to five goal-specific accounts, retirement planning, tax minimization strategies, automatic rebalancing, and exclusive discounts for one-on-one financial guidance.

You can set up automatic investing with very little effort once initial investing parameters have been established. This means you can put your investing on auto-pilot and let Ellevest take care of the rest.

Here are the key features of the Ellevest Plan for online investing:

Ellevest offers two portfolio options: Ellevest Core and Ellevest Impact. Ellevest Core is a more conservative option, while Ellevest Impact is designed to have a positive social and environmental impact.

Ellevest's algorithms use a "gender-aware" investing strategy, taking into account a woman's potentially longer lifespan when designing financial goals and targets. This means their algorithms consider factors like career breaks and pay gaps when suggesting investment strategies.

You can choose from 22 ETFs for the Core Portfolio, or 3 ESG funds for the Impact Portfolio. Ellevest's portfolio investment offerings are relatively limited, but they're designed to be conservative and low-risk.

Ellevest's portfolio construction is based on your answers to personal investing goals questions, and they offer two investment portfolio options: Ellevest Impact and Ellevest Core. Both options are further customized based on your risk tolerance and personal investing goals.

Here are the asset classes that Ellevest's ETFs or ESG funds are invested in:

Ellevest's portfolio customization is limited to changes that align with changes to the risk tolerance level of the portfolio or the type of investment portfolio.

Ellevest's fees are straightforward and easy to understand. You'll pay $12 per month for the Ellevest Plan, which covers up to $1 million in assets.

Ellevest also has a Private Wealth Management option for accounts over $1 million. While there are no advisory fees, you'll still pay ETF fund fees ranging from 0.05% to 0.10% per year for Ellevest Core Portfolios, and 0.13% to 0.19% per year for Ellevest Impact Portfolios.

There are no fees associated with withdrawing your funds, but transferring an account to another institution will cost you $100. If you're transferring only part of an account, fees are $5 per security, with a $25 minimum and $75 maximum.

Here are the fees you can expect to pay:

Overall, Ellevest's fees are competitive with other robo-advisors, but it's essential to consider your individual financial situation and goals before investing.

Ellevest's fees are relatively straightforward, but there are some additional costs to consider.

There are no advisory fees associated with an Ellevest account, but you will pay fees from the companies that own the individual funds in your investment portfolio. These fees can range from 0.05% to 0.19% per year, depending on the portfolio you choose.

ETF fund fees for Ellevest Core Portfolios can range from 0.05% to 0.10% per year, while Ellevest Impact Portfolios have ETF and mutual fund fees that can range from 0.13% to 0.19% per year.

There are some other fees to be aware of, including:

These fees can add up, so it's essential to factor them into your overall investment strategy.

Here's a breakdown of the ETF fund fees for Ellevest Core and Impact Portfolios:

Keep in mind that these fees are in addition to the monthly membership fee, which ranges from $1 to $12 per month, depending on the account tier you choose.

Ellevest uses a method it calls the Ellevest Tax Minimization Methodology (TMM) to help you save money on your taxes.

This methodology is built into its automated rebalancing algorithms as well as something premium clients can get through advisor services.

The platform favors the selection of low-impact securities such as tax-efficient municipal bonds for accounts that are taxable now.

Corporate and U.S. Treasury bonds or stocks are favored for selection in tax-deferred retirement accounts.

By doing this, TMM is intended to reduce tax impact over time.

Ellevest takes security seriously, with measures in place to protect your account information. They offer two-factor authentication to open an investment account or make a withdrawal, and industry-standard encryption for all accounts.

Regular testing of products and security systems for vulnerabilities is also a priority, along with closely monitored network and secure software development procedures. Safeguards are in place to prevent unauthorized account access.

Ellevest is also SIPC-insured, offering protection up to $500,000 for all accounts combined. This is a significant safeguard, as it ensures that your investments are protected in the unlikely event of a security breach.

Here are some key security features Ellevest provides:

Additionally, Ellevest is FDIC-insured for cash deposits, which means that your cash is guaranteed regardless of what happens to the banking institution itself. This provides an extra layer of protection for your investments.

Ellevest offers a range of educational resources to help you improve your financial literacy and achieve your goals.

You can access tips, videos, and articles within the app or on the website, making it easy to stay on top of your finances.

Ellevest also provides digital workshops and self-paced courses for a fee, which can be a great way to gain in-depth knowledge on specific topics.

These courses and workshops are discounted up to 50% for all Ellevest clients, making them an even more attractive option.

If you're short on time, you can also book one-on-one sessions with financial planners or career coaches for an additional fee.

Ellevest offers free, live online workshops on various topics, including investing, budgeting, and retirement planning. Here are some examples:

The "What the Elle" newsletter is another great resource, providing weekly financial news, advice, and updates on new workshops and events.

Ellevest provides a good entry-level investing tool for new investors, those with a low amount of initial capital, or those who just want a more hands-off investing approach.

The platform offers non-investment accounts like savings and checking accounts, as well as a cash-back debit card. Ellevest also provides users with individual brokerage accounts, online debit accounts, and traditional and Roth IRAs.

Ellevest's fees are competitive, with a management fee that's not specified in the article, but it's mentioned that there's a 1 year of free management with a qualifying deposit. The platform also offers a unique feature for women, taking into account the issues that women face in the areas of salary gaps, career breaks, and life expectancy.

Ellevest is a fiduciary, which means it has its users' best interests at heart. The platform is a good option for those who want a hands-off investing approach and don't need individual stock trades.

Here are some of the account types offered by Ellevest:

Ellevest also offers a cash account, traditional, Roth, SEP, and rollover IRAs, as well as joint and individual and non-retirement accounts, and trusts.

The Private Wealth program is a great option for those who want personalized investment management.

You'll have a dedicated financial advisor and a client services team working with you.

The annual membership fee is $1-$9/month, which is a relatively affordable price.

You won't have to pay any additional management fees, regardless of the assets you have with Ellevest.

This program is perfect for those who want a more hands-on approach to their investments.

It's worth noting that this program is available to anyone, not just those with a certain amount of money invested.

Ellevest's overall rating is a respectable 7/10. The company's robo-advisor has received praise for its educational resources, with a rating of 8.5/10.

Here's a breakdown of Ellevest's ratings:

Ellevest's customer service, in particular, has received high marks, with a rating of 8/10.

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Ellevest's ratings are a mixed bag, with a 7/10 overall score.

Commissions and fees are a notable weakness, with a rating of 6.5/10. This is likely due to the costs associated with managing an investment portfolio.

Ellevest's investment selection is also somewhat lacking, with a score of 6/10. This could be a concern for investors looking for a wide range of options.

On the other hand, Ellevest's account options and features are a strength, with a rating of 7/10. This suggests that the platform offers a good balance of flexibility and functionality.

Usability is also a strong point for Ellevest, with a score of 7.5/10. This makes it easy for users to navigate and find what they need.

Ellevest's educational resources are highly rated, with an 8.5/10 score. This is a great asset for investors who want to learn more about investing and personal finance.

Customer service is also well-regarded, with an 8/10 rating. This suggests that Ellevest's support team is responsive and helpful.

Here's a summary of Ellevest's ratings: