Our Take

J.P. Morgan Automated Investing is a straightforward robo-investing platform that integrates nicely with other J.P. Morgan Chase apps, making it a good choice for existing customers. While it is a fit for J.P. Morgan clients looking for a low cost way to add a robo-advisor account to their mix of available financial tools, the costs and minimum investment are on the higher side compared to competitors. In addition to having higher fees and minimums, J.P. Morgan Automated Investing does not offer other features available elsewhere, such as tax-loss harvesting and socially responsible investing. We will look at the specifics of the program so you can determine whether J.P. Morgan Automated Investing is the right fit for your portfolio needs.

Pros & Cons

Account Overview

Account Setup

The account setup process is easy and similar to most of the robo-advisor platforms, with a process that involves answering key questions about the purp๊ose of the account, time horizons, and risk tolerances to score to a specific portfolio. J.P. Morgan Automated Investing platform shows the portfolio and the ETFs, along with other information about the questions and projections of what the investment amount will be in the future, once these questions are answered. At this point, the user needs to set up an account to continue with the process. Funding the account requires a minimum $500 initial investment, and the account needs to maintain a balance of at least $250. The entire account-opening process is done online and does not require any human interaction.

J.P. Morgan Automated Investing offers individual taxable✃, joint taxa♊ble, IRA, and Roth IRA accounts.

Goal Planning

Goal planning on JP Morgan Automated Investing is basic. When going through the account setup process, you can choose if you are investing for retirement or for another specific reason, and your investmen♊t time horizon is incorporated into the portfolio selection. The calculator shows potential portfolio progress against weakꦜ, average, and strong return scenarios. 

While the planning tools within the robo-advisor are nothing great, J.P. Morgan customers all have access to its digital money coach, Wealth Plan, whic𝔉h is an automated financial planner that allows users to set budgets and goals in order to save and invest. External accounts can also be incorporated into Wealth Plan to provide users with a comprehensive view of their financial conditions and progress towards goals. 

Account Services

Many robo-advisors provide additional services to customers, such as cash management, portfolio customization, charitable giving tools, or options for investing in companies that focus on diversity, equity, and inclusion (DEI) or environmental, social and governance (ESG) criteria when making investment decisions. J.P𝓡. Morgan Automated Investment’s account services are covered below.

Cash Management

Typically, J.P. Morgan Chase only keeps a small percentage of robo-advisor funds in cash. Any excess chase is done by a cash sweep into a bank deposit. The current interest rate on robo-advisor cash accounts is 4.30%. 

Portfolio Construction

J.P. Morgan Investment Management does not provide many details about its specific approach to creating the portfolios. However, it has four primary portfolios, as follows:

In addition, for retirement accounts, J.P.ﷺ Morgan Automated Investing also offers what it calls Glide Path Portfolios, which make some changes to the model based on the number of years the investor has until ✱their retirement date.

J.P. Morgan Automat𓆉ed Investing does not use a very large number of ETFs in its portfolios, but every ETF used is a J.P. Morgan Investment Management-managed ETF. This creates a conflict of interest, as different ETFs might perform better than the J.P. Morgan managed fund, but these are not used.

Portfolio Customization

J.P. Morgan Automated Investing offers little in the way of portfolio customization. The program may allow the omission of a particular ETF if a customer requests it, and the Glide Path Portfolios do provide some slight customization to the established model portfolios, but that is abou༒t it.

Portfolio Management

Portfolio management primarily consists of sticking to the model portfolios and 澳洲幸运5官方开奖结果体彩网:rebalancing a portfolio when it drifts too far from the allocation percentages. J.P. Morgan Automated Investing does not specify a drift percentage for when it triggers a port🐠folio rebalancing. External accounts or other assets are not considered for rebalancing, nor is anything else related to the account management of J.P. Morgan Automated Investing.

Further, J.P. Morgan Automated Investing does not offer other features available at other robo-advisors, such as 澳洲幸运5官方开奖结果体彩网:socially conscious investing (SCI) or 澳洲幸运5官方开奖结🥀果体彩网:environmental, societal, and governance (ESG) investing options. Further, the platform does not support澳洲幸运5官方开奖结果体彩网: tax-loss harvesting.

User Experience

Desktop

The desktop version is intuitive and 𝔍easy to use, and existing Chase customers will be able to see and manage all of their accounts in a single, well-organized, integrated platform. This ease of incorporation makes it easy for existing J.P.✅ Morgan Chase customers to try robo-advisor accounts.

Mobile

J.P. Morgan Automated Investing also works well via mobile apps available for Apple and Android devices. Similar to the desktop, the app does a good job integrat♒ing multiple accounts J.P. Morgan Chase customers have. Otherwise, the apps are easy to use.  

Customer Service

J.P. Morgan Automated Investing offers telephone🐓 support Monday through Friday, from 8 a.m. to 5 p.m. ET. Customers can also speak wit🎶h a professional at Chase Bank branches across the country. There is no chat support for J.P. Morgan Automated Investing.

There is access to licensed professionals, but this ♐is really only to assist customers in getting up and running with their account. These pros do not provide any i😼nvestment advice or financial planning services. Only customers with at least $25,000 in their account can speak with a financial advisor. 

Security

Account security is sound at J.P. Morgan Chase. It utilizes encryption and two-factor authorization for log-on for all platforms. Although they will represent a very small component of a robo-advisor account because most account assets will be invested in the various portfolios, funds in the cash sweep account are covered by FDIC insurance for up to $250,000 per account. The majority of the robo-advisor account assets will be ETFs through a brokerage account with a broker-dealer. Therefore, these accounts have SIPC coverage of up to $500,000 to ♓protect them in the event the broker-dealer fails.

Education

J.P. Morgan offers some educational resources in its Automatic Investing program, but the difficult to find and limited FAQ content is geared primarily to helping get people to open an account and get started with robo-investing. ꦇThere are educational ꦫvideos available, too. 

While there is educational content, those looking to learn a𒐪bout investment management and asset allocation would be better served using content available for free from many of the large online brokers.

Commissions and Fees

J.P. Morgan charges 0.35% on assets under management at J.P. Morgan Automated Investing, as well as the fees, known as expense ratios, for the ETFs in the various portfolios. The initial minimum investment to get started with J.P. Morgan A🎃utomated Investing is $500, and accounts need to maintain a minimum balance of $250.

Since all of the funds in J.P. Morgan Automated Investing are invested in J.P. Morgan managed ETFs, J.P. Morgan offsets the advisory fee by the portion of the overall expense ratio by the amount retained by J.P. Morgan.   

Final Verdict

J.P. Morgan Automated Investing is a well-functioning robo-advisor platform that adequately determines portfolios based on the investor questionnaire. However, while it works well, it is a bare-bones platform compared to other robo-advisors. The platform does not offer much 𒐪in the way of customization of portfolios and does not offer tax-loss harvesting or the ability to invest in a socially responsible way. 

Further, J.P. Morgan Automated Investing’s fees of 0.35%, while not excessive, are still higher than competitors that offer more features. J.P. Morgan Automated Investing may be a good place to start with passive investing for existing customers that can easily add a robo-advisor account. There is also added value in that the J.P. Morgan Chase platform allows investors to see all of their assets in one place. However, those not already using J.P. Morgan Chase would be better off choosing a different robo-advisor that off𝓡ers moreꦺ for less. 

How Does J.P. Morgan Automated Investing Work?

J.P. Morgan Automated Investing works similar to many other robo-advisors. Investors start by answering a series of questions to determine goals and risk tolerances. The questionnaire score then feeds into the ♚platform and results into a portfolio recommendation.

The portfolio, consisting of J.P. Morgan ETFs, is managed and automatically 澳洲幸运5官方开奖结果体彩网:rebalanced to the correct portfolio parameters if th🐓e allocations drift too far from the portfolio’s target.

Is Automated Investing a Good Idea?

Automated investing is a good idea, but it is not for everyone. Automated investing is built on the idea that investors should be able to fund an investment account that is crafted by professionals to fit the specific criteria of the individual customer without interacting with a human expert. Those with more complicated personal finances are generally not a great fit for automated investing. For the passive investor, however, it is a great way to gain exposure to financial markets and investing. Read 澳洲幸运5官方开奖结果体彩网:Autom💮ated Tra𒅌ding Systems: The Pros and Cons to learn more about automated investing.

Is J.P. Morgan Automated Investing FDIC Ins꧋ured?

Cash “swept,” or allocated, to the deposit account for J.P. Morgan Automated Investing accounts has 澳洲幸运5官方开奖结果体彩网:Federal Deposit Insurance Co🍸rporation (FD🅠IC) coverage. The investment portfolios are not FDIC insured because J.P. Morgan Automated Investing accounts are brokerage accounts, not bank accounts. 🔴

The J.P. Morgan investment accounts in the J.P. Morgan Automated Investing offering are protected by the 澳洲幸运5官𒁏方开奖结果体彩网෴:Securities Investor Protection Corporation (SIPC) for up to $500,000 if the broker-dealer fails.

How Much Does J.P Morgan C♏harge 𒉰for Its Robo-Advisor?

J.P. Morgan charges 0.35% on assets under management at ﷺJ.P. Morgan Automated Investing, as well as the fees, known as expense ratios, for the ETFs in the various portfolios. The minimum investment to get started with J.P. Morgan Automated Investing is $500, and accounts ne🅷ed to maintain a minimum balance of $250.

Since all of the funds in J.P. Morgan Automated Investingꦡ are invested in J.P. Morgan managed ETFs, J.P. Morgan offsets the advisory fee by the portion of the overall expense ratio by the amount retained by J.P. Morgan.   

What Is the Average Return on a Robo-Advisor?

Returns on robo-advisors are♔ a function of the strategies chosen, as well as the investment performance of the funds chosen. Expense ratios also vary by fund, so the robo-advisor program’s ability to choose well-performing funds with low overall fees will lead to the best results.

It should be noted that average returns will, and should, vary based on the specific portfolio and investment choices made in a robo-advisor account. More conservative investment strategies are expected to have lower returns than strategies that take on more risk. This article, 澳洲幸运5官方开奖结果体彩网:Are Robo-Advisors Worth It?, provides additional information on this topic.

How We Review Robo-Advisors

Providing readers with unbiased, comprehensive reviews of digital wealth management companies, more commonly known as robo-advisors, is a top priority of Investopedia. Over a period of two months, our team of researchers, data collectors, and industry experts conducted an exhaustive review process that included in-depth industry research, company survey 🤪data collection, and hands-on d🌠emonstrations and evaluations of 19 robo-advisor platforms.

We then developed a quantitative model that scored each company to r🌜ate its performance across nine major categories and 57 crit𝄹eria to find the best robo-advisors. The score for each company’s overall star rating is a weighted average of the criteria.

Many of the companies we reviewed also performed live demonstrations of their platforms and services in video calls with our research and editorial teams. Our team of expert writers and editors was also granted access to live✃ accounts so they could perform hands-on testing. Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top robo-advisors.

Read our full 澳洲幸运5官方开奖结果体彩网:Methodology for reviewing robo-advisors.

Separately, our research team conducted a survey of 205 U.S. adults aged 18 to 72 who are current clients of one of 18 robo-advisors. While the information collected did not influence the development of our ratings model, it was instrumental in gathering the valuable insights published in Investopedia's 2023 Robo-Advisor Cons🌳umer Survey.

Participants in our 2023 Robo-Advisor Survey opted-in to an online, self-administered questionnaire from a market research vendor. Data collection took place between Aug. 30, and Sept. 15, 2023, with 11 video interviews conducted with volunteer respondents from Sept. 7, to Sept. 17, 2023. Multiple quality checks, including screeners, attention gauges, comprehension evaluations, and logic metrics, among others, were used to ensure only the highest quality responses were included.