Senior vice-president of Wells Fargo, Samantha Samana said that the aforementioned would be true of smaller asset management companies. Wells Fargo, which manages $7 billion in managed ETF portfolio assets, has a minimum requirement of $25,000. More sophisticated strategies come with a minimum $50,000 requirement, reports Coleman.
“We wouldn’t be opening those accounts at such minimum levels if it wasn’t profitable,” Samana added in the story.
“An organization with less scale and less ability to leverage its resources might find servicing investors with smaller portfolios a challenge,” John Moninger, executive vice president of advisory and brokerage consulting services at LPL, said. “But we’re in a position to provide advisers with a broad range of ETF platforms so that they can work with clients of all portfolio sizes. We feel like that’s an important element for a wealth manager to keep adding to their customer base.”
Tisha Guerrero contributed to this article.