As a result, Acorns recommends that clients ensure their financial condition, risk tolerance and investment goals are kept current in their investor profile on the Acorns App.Īs clients make further deposits into, or withdrawals from, their Acorns Accounts, the corresponding transactions made by Acorns are designed to rebalance the account toward the target allocation of the relevant Portfolio. Acorns reviews and evaluates portfolio allocation determinations periodically in line with material updates to a client’s investor profile. A client can choose to override such algorithmic determination by selecting a different portfolio. You will not be permitted to invest in both types of portfolios at the same time.Īcorns uses a proprietary computer software-based algorithm to match each client’s Acorns Account(s) to the portfolio best suited to the client’s investment goals, based on a client’s investor profile questionnaire, which incorporates the client’s financial situation, investment horizon, and risk profile, among other factors. Upon opening an account, you will be prompted to select whether you wish to invest in an ESG Portfolio or Core Portfolio. The ESG Portfolios are distinguished from Core Portfolios by specifically focusing on investing in ETFs that hold companies with strong MSCI ESG records. Acorns currently offers five (5) model portfolios reflecting investment outlooks and risk tolerances ranging from ‘conservative’ to ‘aggressive’ in the “Core Portfolio” and four (4) model portfolios in the “Environmental, Social and (Corporate) Governance (“ESG”) Portfolio” (there is no “conservative” portfolio available in the ESG Portfolios). The ETFs within the model portfolios are managed by independent third-party Investment Advisers. Acorns’ model portfolios reflect target asset allocations across various asset classes, for example stocks (equities) and bonds (fixed income). The primary service Acorns provides to investors is investment advice through model portfolios comprised of Exchange Traded Funds (“ETFs”). UGMA/UTMA investment accounts for the benefit of minors (“Acorns Early Account”).Individual Retirement Accounts, often referred to as “IRAs” (“Acorns Later Account”), and.Traditional individual investment accounts (“Acorns Invest Account”). As part of such services we offer you the ability to invest in the following three main types of investment accounts (“Acorns Account(s)”): What investment services and advice can you provide me?Īcorns only offers investment services and advice to retail investors. Free and simple tools are available to research firms and financial professionals at /CRS, which also provides educational materials about Broker Dealers, Investment Advisers, and investing. This relationship summary is designed to provide you with a summary of the services that can be offered to you by Acorns Advisers and Acorns Securities, the fees charged for such services and various other information, such as the conflicts of interest affecting Acorns and its personnel and any relevant legal or disciplinary history. We refer to Acorns Advisers and Acorns Securities collectively below as “Acorns.” Acorns Advisers and Acorns Securities are subsidiaries of Acorns Grow Incorporated (“Acorns Grow”). Acorns Securities is also a member of the Securities Investor Protection Corporation (“SIPC”). Acorns Advisers, LLC (“Acorns Advisers”) is registered as an Investment Adviser with the Securities and Exchange Commission (“SEC”) and, its affiliate, Acorns Securities, LLC (“Acorns Securities”), is registered as a Broker Dealer with the SEC and is a member of the Financial Industry Regulatory Authority, Inc.(“FINRA”).
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