Accounts managed by Ally Invest Managed Portfolios are offered through our affiliate broker dealer, Ally Invest Securities, LLC.
Ally Invest Securities, LLC, clears and settles trades through Apex Clearing, Inc., an unaffiliated clearing company. Both Ally Invest Securities and Apex Clearing are members of FINRA and SIPC.
Ally offers tax-optimized portfolios, which are typically suited for people who have investments in non-IRA taxable accounts, especially those in higher tax brackets. These portfolios include municipal bonds, an asset class that offers tax advantages through current income that’s exempt from federal income taxes and, in some cases, state and local taxes.
When you’re in our online application, select Taxable as your account type and check the box for tax-optimizing your portfolio. If you’re currently an Ally Invest Managed Portfolio customer and want to learn if your existing portfolio qualifies for the tax-advantaged program, call us at 1-855-880-2559.
Ally Invest Managed Portfolios are constructed using exchange-traded funds. Exchange-traded funds, or ETFs, are investments designed to track the performance of an index, such as the S&P 500. In its simplest form, an ETF provides many of the characteristics of a mutual fund, but trades like a stock on an exchange, meaning it can be bought and sold anytime during trading hours. Due to their structure, ETFs are low-cost, transparent, and tax-efficient, providing the ideal investment vehicles for Ally Invest Managed Portfolios.
Advisory fees are based upon the daily total equity balance of the account. Fees are calculated daily, prorated and aggregated for every calendar day, and billed monthly to your account. The fee is charged within the first 10 days of the month for the previous month. All fees deducted will be clearly noted on your monthly account statement from the Invest Activity section.
We maintain an allocation to cash in your account, typically ranging from 1-2% of the portfolio. We consider cash an asset class which provides diversification benefits to an overall asset allocation due to its low correlation with other asset classes, such as stocks and bonds. Cash can also act as a “buffer” to facilitate the rebalancing of your assets.
Our advisory fee is an all-inclusive wrap account fee that is assessed for constructing and managing the portfolio you choose for your managed account. Ally Invest Managed Portfolios will recommend a diversified portfolio tailored to your individual needs, automatically invest your initial and subsequent deposits into your portfolio, and continuously monitor the portfolio to help keep you on track.
If market fluctuation causes positions to move away from their original target weightings, we'll automatically place trades to help rebalance the portfolio.