Automated Online Managed Accounts Faring Well: Corporate Insight

The minimum investment for these types of services is as low as $5,000.

Automated online managed account services are faring very well, Corporate Insight says in a new report, “Next-Generation Investing: The Incumbents Arrive.”

“Fintech firms introduced a new business model—the automated online managed account—that incumbents and startups alike are rallying behind,” Corporate Insight says. Online managed accounts invest in exchange-traded funds (ETFs) and, in some cases, mutual funds. They have a minimum investment as low as $5,000 and typically charge less than 50 basis points of assets.

“The online managed account model has emerged as the clear winner when it comes to investing and personal finance startups,” Corporate Insight says. “Many of the other direct-to-consumer models have not fared as well. Managed account providers like Betterment, Personal Capital and Wealthfront have continued to win new client assets. Today, these three firms alone manage $13.4 billion in assets, almost $5.5 billion more than 11 leading startups managed in July 2015.”

In 2015, Charles Schwab and Vanguard launched online managed account services, and this year, Capital One Investing, E*TRADE, Fidelity Investments, Merrill Edge and TD Ameritrade launched or announced their intention to launch such services. Recently, BlackRock and Invesco acquired online managed account firms FutureAdvisor and Jemstep, respectively.

Those interested in ordering a copy of “Next Generation Investing: The Incumbents Arrive” can contact Corporate Insight Sales and Marketing Associate Erin Bosetti at