E*Trade is shutting down one of its advisory programs that tapped financial advisors to set up portfolios for clients, according to news reports.

The company’s Dedicated portfolios closed to new accounts effective Friday last week, FA-IQ sister publication Ignites writes, citing E*Trade’s new Form ADV.

Portfolio management of existing accounts will not have any changes, however, and advisors at Morgan Stanley – which acquired E*Trade in October 2020 for $13 billion — will be able to open accounts in a program similar to Dedicated portfolios, according to Ignites, which cites a customer service representative.

Dedicated accounts were set up based on advisors’ interviews with clients about their investment goals, planned investment horizons, restrictions and liquidity needs, and then serviced by members of the investment advisor representative team or financial consultants, the publication writes. The accounts are made up mostly of exchange-traded funds, no-load mutual funds, load-waived Class A shares and institutional shares, according to the ADV cited by Ignites.

Existing Dedicated clients pay an annual advisory fee of 125 basis points for the first $1 million in assets, 115 bps for assets up to $2 million, 110 bps for assets between $2 million and $5 million and 95 bps thereafter, the publication writes.

An E*Trade spokesperson declined comment to Ignites on the amount of assets in the Dedicated program.

E*Trade also offers the Core program, a digital-only offering that comes with a $500 minimum and gives clients access to a call center that’s mostly for operational support, the publication writes, citing E*Trade’s website and a report from research firm Backend Benchmarking.

E*Trade also offers a hybrid robo in its Blended portfolios program, which has a $25,000 minimum, according to Ignites.

In addition, E*Trade's Fixed Income portfolios, which come with a $250,000 minimum, are built by portfolio managers and give clients access to dedicated financial consultants, the publication writes, citing the firm’s website and Form ADV.

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