Morgan Stanley says it’s consolidating its robo-advisor offerings within the E*Trade platform and discontinuing its own digital advice platform.

Core Portfolios from E*Trade, which Morgan Stanley acquired in 2020 for $13 billion, “is specifically designed to help meet the needs of digitally inclined investors and exists within E*Trade’s award-winning digital brokerage platform, making it a natural home for Morgan Stanley’s robo-advisor,” the company said in a release announcing the platform change.

Morgan Stanley adds that it’s soft-closing its own digital advice offering, Morgan Stanley Access Investing, to new clients in December.

Core Portfolios, which relies on an investor questionnaire to recommend a model portfolio that taps analysis by Morgan Stanley’s Global Investment Office, requires a minimum investment of $500 and has 0.30% annual fee, according to Morgan Stanley. Investors also have the option of customizing their portfolios with smart beta and socially responsible strategies.

Although Core Portfolios' clients have access to “a team of investment professionals,” they are not assigned an individual financial consultant or portfolio manager, Morgan Stanley says.

Last year, the company shuttered E*Trade’s Dedicated portfolios, an advisory program that relied on financial advisors to set up portfolios for clients.

Morgan Stanley adds that in September, it added a new 50% equity, 50% fixed-income and cash model portfolio to the Core Portfolios product lineup. The platform will get additional “premium features” available from Morgan Stanley Access Investing, such as tax-loss harvesting, according to the firm.

“Throughout the integration we have looked for opportunities to combine Morgan Stanley’s deep wealth management expertise with E*Trade’s digital prowess,” Chad Turner, head of Morgan Stanley Wealth Management’s Digital Direct Channel, said in the announcement. “Today represents an important step in that effort, wherein we are combining the most sought-out features of both Core Portfolios and Access Investing to offer an exceptional experience for digitally inclined and beginning investors.

David Goldstone, manager of investment research at Condor Capital, said one concern about the integration is whether transitioning assets from one platform to the other would trigger taxes in taxable accounts, according to FA-IQ sister publication Ignites. And it remains to be seen which models and portfolios will remain, he said, according to the publication.

“Morgan's Access Investing stood out from its peers in that there were a variety of thematic portfolios, like a genomics-focused portfolio or an inflation-conscious-themed portfolio,” Goldstone said, according to Ignites. “It will be interesting to see whether E*Trade adopts these themed portfolios post-integration.”