While free financial advice through Advisor Connect is a great marketing pitch, you have to be an Advisor Connect client paying .9% per year already with Managed Portfolios. There is no free lunch. The service is a natural extension of PortfolioBuilder (launched 2014), a phenomenal tool that allows regular Capital One Investing customers to build a diversified portfolio of up to eight ETFs and purchase it for only $18.95. Capital One Investing has the right idea and will certainly find success marketing Advisor Connect to its own umbrella of Capital One customers; however, beyond this, the .9% management fee is, without question, going to be a tough sell to prospect clients who do some shopping first.

Capital One Investing (read our review) is adding two new services to its offering: “free” human advice and robo advisor style managed portfolios.


Customers with a $25,000 minimum can pay a .9% annual advisory fee to become an Advisor Connect client and have a Managed Portfolio. Capital One Investing described Managed Portfolios as, “a new digitally powered advice solution that leverages investing technology, including automated monitoring and rebalancing, along with professional oversight.”

Translation? Managed Portfolios is Capital One Investing’s new robo advisor service.

Low cost, third party (Vanguard and iShares funds initially), index based ETFs in a diversified portfolio mix are at the core, while automatic portfolio monitoring and rebalancing keep the portfolio on track throughout the year.

Once setup as an Advisor Connect client, you then gain access to free financial phone advice. Advisor Connect is a new way for Capital One Investing customers to pick up their phone and speak to a financial advisor, for free, and receive unbiased advice whenever they like.

Combining human advice with a robo automated portfolio setup is becoming a common way to offer competitive value over traditional robo advisors such as Wealthfront and Betterment. The service is most similar to Vanguard Personal Advisors ($50,000 minimum), which charges just .3% per year + ETF fees (approximately .49% per year all-in).

“At Capital One Investing, our goal is to build planning tools that help customers invest with confidence and manage portfolios in ways that work best for them. We’re providing flexible solutions that fit seamlessly into everyday investors’ busy lives,” said Yvette Butler, president of Capital One Investing. “Advisor Connect marks a significant milestone on our journey to build a customer-first, conflict-free and transparent investing experience that empowers today’s investors to plan for the long term.”

For a good write up and breakdown of the new Advisor Connect and Managed Portfolios, read this WSJ article.

Capital One Investing Advisor Connect Offers Unbiased Investment Advice Nationwide
June 17th, 2016