Capital One Advisors: what do you need to know?

Summary 

Introduction to Capital One Advisors 

Capital One Advisors Managed Portfolios was Capital One’s robo-advisor service aimed at creating bespoke investment portfolios for clients, especially those without much investing experience. The portfolios reflected clients’ risk tolerance and goals. The service offered clients access to a financial advisor during the investing 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 purchased more than 1 million self-directed brokerage accounts from the service. Capital One Advisors Managed Portfolios is no longer registered and no longer files reports with the SEC or with any US state.

What services do Capital One Advisors offer? 

Capital One financial advisors offered a range of products and services, including: 

Capital One still offers personal and business banking services. 

What is Capital One Advisors’ investment philosophy? 

Capital One independent financial advisors' philosophy was 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. 

Find an investment advisor you can trust through Unbiased. 

What is 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. 

Is 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 trustworthy. 

However, when Capital One Advisors was still active, some clients found that the website was not easy to navigate, and various services were not explained sufficiently. The website also did not provide specific details regarding ETF fees and features such as tax-loss harvesting.  

Even though clients could access their portfolios online, they weren’t able 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. 

What are the pros and cons of Capital One Advisors? 

As with all financial advisory and brokerage services, there were pros and cons to Capital One Advisors. 

Pros 

Cons 

How to 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 is 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.