The portfolios reflected clients’ risk tolerance and goals.
The service provided clients with access to a financial advisor throughout the investment process. After working with the advisor, clients would let the service take charge of their investment portfolio.
Capital One exited the retail brokerage business in 2019 and stopped providing investment advisory services in 2022. E*TRADE acquired more than 1 million self-directed brokerage accounts from the service.
Capital One Advisors Managed Portfolios is no longer registered and does not file reports with the SEC or any US state.
Does Capital One have financial advisors?
Not anymore.
According to the US Securities and Exchange Commission (SEC), Capital One has no registered investment advisors.
Previously, it offered a service called Capital One Advisors Managed Portfolios, a robo-advisor that created personalized investment portfolios.
However, Capital One exited the retail brokerage business in 2019 and officially ceased offering investment advisory services in 2022. As a result, Capital One Advisors Managed Portfolios is no longer available.
While the company does not currently have financial advisors, it does offer other financial products and services, including free financial mentoring, video workshops, and self-guided tools through its “Money & Life Program.” This program is free to anyone, regardless of whether you bank with the company or not.
What services did Capital One Advisors offer?
Capital One financial advisors offered a range of products and services, including:
- Financial advice
- Investment advice
- Investment portfolio creation
- Individual and joint taxable accounts
- Education savings accounts (ESA)
- Custodial accounts
- Traditional and Roth IRAs
Again, Capital One still offers personal and business banking services.
What was Capital One Advisors’ investment philosophy?
Capital One's independent financial advisors' philosophy and strategy were to invest clients’ portfolios exclusively in exchange-traded funds (ETFs). The service diversified clients’ portfolios across various asset classes, namely cash, bonds, and stocks, which helped mitigate losses in the event of market shifts.
The service’s philosophy also aimed at making investing as simple as possible for its clients, which ultimately meant a hands-off approach. The service, rather than its clients, would place and alter trades, with portfolios being rebalanced automatically to maintain each client’s unique ideal.
What was Capital One Advisors’ pricing and fee structure?
With Capital One Advisors Managed Portfolios’ exit from the retail brokerage and investment advisory services business, information regarding its pricing and fee structure is no longer readily available.
However, when active, the service was known for charging higher fees than many of its competitors. Furthermore, even though the company courted clients with little to no investment experience, Capital One had relatively high minimum investment requirements.
For example, clients would need to deposit at least $25,000 to start investing with Capital One financial advisors. The service charged a management fee of 0.90% of assets under management, which was higher than that charged by other robo-advisors, which usually charge fees of less than 0.50% of assets under management.
What were the pros and cons of Capital One Advisors?
As with all financial advisory and brokerage services, Capital One Advisors had its pros and cons.
Pros of Capital One Advisors
Some things that clients liked about Capital One Advisors included:
- Capital One Advisors Managed Portfolios created personalized investment portfolios, taking into consideration each client’s risk tolerance and goals.
- Although this was a robo-advisor service, it also provided clients with access to human financial advisors.
- A hand-off approach to investing meant that clients did not need to place or alter trades, as the service handled these tasks. The service also offered automated portfolio monitoring and rebalancing.
- Capital One Advisors invested clients’ portfolios in ETFs, diversifying them across asset classes, including stocks, bonds, and cash.
Cons of Capital One Advisors
Some drawbacks include:
- Capital One Advisors exited the brokerage business in 2019 and the financial advisory business in 2022.
- Capital One Advisors required a $25,000 minimum deposit and charged a 0.90% management fee.
- The website was difficult to navigate, provided unclear information, and made it hard for clients to track their progress.
- The service lacked sufficient unique selling points to differentiate itself from other robo-advisors and brokerage services.
Was Capital One Advisors trustworthy?
Even though it’s no longer possible to obtain financial advice or invest with Capital One Advisors Managed Portfolios, Capital One itself continues to offer a range of services.
Among the services still available are credit cards, checking and savings accounts, auto financing, and commercial banking solutions. As a financial institution, Capital One is a trustworthy entity.
However, when Capital One Advisors was still active, some clients found that the website was not easy to navigate, and various services were often not sufficiently explained. The website also did not provide specific details regarding ETF fees and features such as tax-loss harvesting.
Although clients could access their portfolios online, they were unable to track their progress toward their goals easily. While this does not indicate that the service was untrustworthy, these frustrations may have eroded some clients’ confidence in the service.
Can you still open an account with Capital One Advisors?
It is no longer possible to open an account with Capital One Advisors. The service is no longer registered, and it no longer files reports with US states or with the SEC.
Seek expert financial advice
With Capital One still offering banking services, it’s unsurprising that the brand is still associated with financial advice, financial planning, and investing. The continued association of the brand with these services was a testament to its popularity among new and inexperienced investors. Even though it’s no longer possible to access the services that Capital One Advisors Managed Portfolios offered, you can access similar trustworthy services.
Seek an SEC-registered financial advisor through Unbiased for expert financial advice.