The portfolios themselves are comprised of low-fee ETFs. For example, the top-five holdings in the Covestor Core Growth Portfolio include the Vanguard Total Stock Market ETF (NYSEArca: VTI), Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG), which have an average annual expense ratio of just over 0.09%.
AGG, VTI and VWO are also top holdings in the core balanced portfolio. Covestor’s Core Balanced Portfolio holds AGG, the iShares TIPS ETF (NYSEArca: TIP) and the iPATH Dow Jones-UBS Commodity Index Total Return ETN (NYSEArca: DJP), among others.
“Pricing these Covestor Core portfolios as close to zero as possible for our clients who have been asking for a low-cost, passively managed investment solution is the right thing to do because the marginal cost of adding them to our marketplace is de minimus,” adds Shivarthy.
Vanguard Total Stock Market ETF