Marcus Invest Review: A Robo Advisor With Lots of Options |…

Marcus Invest is a robo-advisory service offered by Goldman Sachs, using the same branding as the Marcus bank account products. It offers a wide range of investment portfolios, including socially responsible investment (SRI) options.

Marcus Invest follows a style similar to the other best robo advisors, offering broadly-diversified ETFs in multiple asset classes, and utilizing the principles of modern portfolio theory for investment management. Marcus Invest is a good option for those who want hands-off investing and the ability to choose a customized portfolio to fit their financial and personal goals.

Marcus Invest Overview

Features	Details
Account Fees	0.35% Advisory fee
Expense Ratios	Depends on portfolio and funds selected Expense ratio refunds available on Goldman Sachs ETFs within Smart Beta Portfolio
Account Minimums	$1,000
Investment Options/Choices	Offers three investment strategies, with over 50 managed portfolios of stock and bond ETFs that are diversified across asset classes.
Investment Account Options	Individual investment accounts IRA, Roth IRA, SEP IRA Joint accounts
Tax Strategy	Marcus Invest sells assets with highest basis for a lower taxable gain Municipal bonds available in some portfolios
Customer Service and Support	Phone, live chat, and email support, Monday - Friday, 9am to 6:30pm EST
Mobile Compatibility	Mobile app available Website is mobile-friendly
Account Setup	Simple online account setup Sign up for an account online, select account type, answer a few questions, select portfolio, and fund the account with a minimum of $1,000.
Security	Bank-grade data protection, two-factor authentication. SIPC insurance ($500,000)
Ease of access	Marcus Invest offers a mobile app and full-featured website with a customer dashboard.

What Is Marcus Invest?

Marcus Invest is a robo-advisory service provided by Goldman Sachs, offering automated investment management for a 0.35% annual fee. Marcus allows customers to choose from one of three investment strategies, with access to ETFs in over a dozen asset classes to build a diversified investing portfolio.

When you start investing, Marcus Invest tracks your portfolio, automatically rebalancing if it strays too far from your predetermined asset allocation. Marcus Invest users can manage their account from the Marcus mobile app, and can also connect a high-yield Marcus savings account as well.

Marcus does not offer access to a live financial advisor for advice, but does offer customer support 5 days a week via phone, email, and live chat on the website or mobile app. Goldman Sachs has over 150 years of financial experience.

How Marcus Invest Works

Marcus Invest is a robo-advisor that allows users to choose an investment strategy best suited for them in order to save for retirement and other financial goals. All investment strategies are designed by Goldman Sachs investment professionals. It offers regular brokerage accounts and IRA account types.

Marcus Invest uses advanced investing algorithms, along with several portfolio options to help users customize and invest in a broadly diversified portfolio toward financial goals like retirement. These portfolios invest in a wide range of low-cost ETFs in multiple asset classes to give users exposure to stocks, bonds, treasury notes, and even real estate.

Users can open a standard account or retirement account and start investing with as little as $1,000. Automatic investments are available as well, allowing users to set up recurring investments for their account.

Main Features

Marcus Invest is a standard robo-advisory service with automatic portfolio management and access to low-cost funds to build a diversified portfolio. Here are a few of the features offered by Marcus Invest:

Multiple Portfolio Options

Marcus Invest offers users access to three investment strategies, with the ability to adjust risk tolerance from convervative to aggressive on a sliding scale. These strategies and their portfolios offer different ways to invest, including a passive strategy, socially responsible investment, and a portfolio that is designed to actively try to beat market indices. Here’s a breakdown of each investment strategy:

Core Portfolio: These portfolios are made up of index funds, designed to perform as well as market benchmarks. This portfolio is ideal for those who want a diversified passive investing strategy.

Impact Portfolio: These portfolios are designed for the socially-conscious investor, designed to track market benchmarks while avoiding investments that may cause environmental or social harm. This portfolio may include ESG-specific ETFs, but will vary depending on the asset allocation selected.

Smart Beta Portfolio: These portfolios are designed to out-perform market benchmarks, using Goldman Sachs Active-Beta® ETFs in combination with other low-cost ETFs. Any Goldman Sachs ETFs used in these portfolios offer a credit to refund any expense ratios paid for holding the ETF. This portfolio is not available inside an IRA.

ETF Selection

Marcus Invest offers a wide range of ETFs in 13 different asset classes to build its portfolios. Here’s a list of the asset classes that Marcus Invest may include in your portfolio:

U.S. Investment Grade Short Term Municipal Bonds
U.S. Investment Grade Short-Term Bonds
U.S. Investment Grade Municipal Bonds
U.S. Investment Grade Bonds
U.S. High Yield Bonds
U.S. Large Capitalization Stocks
International Developed Market Stocks
U.S. Small Capitalization Stocks
Emerging Market Stocks
U.S. Large Capitalization Value Stocks
U.S. Small Capitalization Value Stocks
U.S. Real Estate
International Real Estate

Marcus Invest is one of the few advisors with access to real estate investments, which also includes international REITs. While all of these asset classes are not included in each portfolio, investors may have exposure to non-correlated assets that make up a high-quality diversified portfolio.

Automatic Rebalancing

Marcus Invest will monitor your investment portfolio daily, and automatically rebalance if the portfolio drifts too far away from the target asset allocation. This is standard practice among most robo-advisory services, though Marcus Invest will attempt to only sell assets with the least tax impact when rebalancing.

High-Yield Savings

Marcus Invest customers can also gain access to the Marcus high-yield savings account that pays higher-than-average interest rates. The account has no minimums, no fees, and can be accessed on the Marcus mobile app.

Who Marcus Invest is Best for

Marcus Invest is best for investors who want access to a socially responsible investment (SRI) portfolio, as well as users that want access to a higher interest rate on their savings. Marcus Invest also offers refunds on Goldman Sachs’ fund expense ratios, saving customers additional money.

How to Get Started

To open a Marcus Invest account, users can sign up on the website or mobile app. First, users select an account type (investment account or retirement account), and then answer a few questions to gauge their risk tolerance. After answering these questions, Marcus Invest will recommend a portfolio asset allocation, which you can adjust to be more conservative or aggressive if you wish.

Once you pick an asset allocation, there are three investment strategies to choose from, Core, Impact, and Smart Beta. After selecting a portfolio strategy, you’ll complete the application, open your account, and connect a bank account to fund your investments. The minimum deposit required to open an account is $1,000; after that, you can set up smaller, recurring investments as well.

Pros and Cons

Marcus Invest has a wide range of portfolio options, but it does have a few things it could improve. Here are a few of our favorite (and least favorite) things about Marcus Invest:

Pros

Helps automate your investing strategy
ETFs in 13 asset classes
Access to socially responsible investments
Fee refunds for Goldman Sachs funds

Cons

High management fee of 0.35% (most competitors are 0.25% or lower)
High minimum to open an account ($1,000)
No tax-loss harvesting
No access to live advisors

Marcus Invest Alternatives

While Marcus may be a good option for those looking for socially responsible investing options, or a well-diversified portfolio, it may not be the best fit for everyone. Here are a few Marcus Invest alternatives if you want to consider other robo-advisors.

Sofi Automated Investing

Sofi Automated Investing is a no-fee robo-advisory service that offers access to CFPs and career coaches for no annual fee. Sofi offers the standard portfolio of most robo-advisors, consisting of low-cost, broad-based ETFs, though some of the funds offered are owned by Sofi. Sofi is a great alternative for those looking for no fees and lower minimum investment (Sofi has no minimums required).

Wealthfront

Wealthfront is our No. 1 rated robo-advisory, with access to a wide range of ETFs in 11 asset classes, a free financial planning app, and advanced tax strategies for savvy investors. Wealthfront also has more features than most robo-advisors, offering a portfolio line-of-credit and stock-level tax-loss harvesting. Wealthfront charges a 0.25% management fee and a $500 minimum to open an account.

RELATED: Wealthfront Review

Vanguard Digital Advisor

Vanguard is known for its low-cost index funds, and it now offers a robo-advisory service that offers simple portfolio construction, automatic rebalancing, and very low fees. Vanguard Digital Advisor only charges a 0.15% annual management fee, though it does not offer some of the more advanced tax strategies as other advisors. Vanguard Digital Advisor is ideal for those looking for a simple, passive investing strategy with low overall costs.

Summary

Marcus Invest is a solid robo-advisory service, though its 0.35% annual fee is higher than some competitors. Marcus Invest offers more investing options than many other investment firms, with multiple portfolio options to choose from. If you are looking for access to socially-responsible investments and a slick mobile platform to manage your portfolio, Marcus Invest is a good choice.