What is Hedgeables fee structure

Hedgeable review

Hedgeable Review: Socially Responsible Investing With Just $ 1

With its advanced technology platform and very attractive fee model, Hedgeable offers private asset management for investors. You create portfolios based on the core satellite strategy. The portfolio is divided into the so-called core and the satellites surrounding it, which are investments in various asset classes that do not correlate with the core. In addition to risk-minimizing diversification, the aim is to generate an attractive return with this structure.

In addition to their core satellite portfolio, Hedgeable also offers portfolios for people interested in a specific investment style. For example, for investors who are interested in portfolios that meet strict criteria such as “social responsibility”. Portfolios can be designed in such a way that they only invest in those assets that do not harm the environment, are ethically sensible (i.e. no investments in tobacco, alcohol or weapons) and only have a limited negative impact on other countries.

Hedgeable isn't quite as well known as Wealthfront or Betterment. However, they have focused on specific audiences like those interested in socially responsible investing. You can find out more details about Hedgeable here:

Assets Under Management: $ 70 million

Minimum investment amount: At Hedgeable, the minimum investment is $ 1. There are no minimum amounts or automatic savings plans. However, to receive the full core satellite portfolio, the investor account value must be at least $ 100,000.

Information on portfolio and asset allocation: Hedgeable takes a private wealth management approach for its clients. Usually this service is reserved for wealthy customers (10 million +) only. Their private wealth management model means that clients receive tailor-made portfolios with active risk management and hedging strategies as well as alternative investments and core-satellite investments.

Fees: Hedgeable's fee structure is based on a tiered system. The higher the fund assets under management, the lower the fees. Fees start at 0.75% and drop to 0.30% for customers over $ 1 million.

Account types: Hedgeable offers more than twenty-five different account types including individual retirement accounts (IRAs), 401 (k) s, and other general investment accounts.

Hedgeable - minimum investment amount

Hedgeable has very low initial deposit requirements. To gain access to the platform and start building a portfolio that suits client needs, they only require $ 1 as a minimum investment. With this low minimum investment, the customer's bank account is linked to Hedgeable's custodian bank and the process begins.

Once the portfolio has been created and the initial deposit has been made, additional money can be deposited to invest in the selected portfolios.

Hedgeable - Portfolio and Asset Allocation Information

Hedgeable differs from other robo advisors in that they offer a lot of bespoke portfolios. In compliance with the basic principles of modern portfolio theory, their algorithms estimate the expected ratio of opportunity and risk as well as the expected cross-asset correlation for each asset class. Based on this, the asset allocation is defined, which maximizes the risk-reward ratio.

Their methodology includes three elements that are used collectively so that a portfolio can be customized as needed and tailored precisely to the client's needs

The investment universe makes Hedgeable unique. In addition to traditional asset classes such as domestic stocks and bonds, which most robo advisors already use, Hedgeable creates portfolios with asset classes such as "Alternatives" and "Absolute Return".

For more details on Hedgeable's investment process, please visit their white paper.

Hedgeable Fees And Additional Pricing

Hedgeable's fee structure, like their portfolios, is a bit more complicated than that of other classic robo advisors. You use a tiered investment model, with fees that gradually decrease depending on the fund assets under management.

These fees are inclusive of all Hedgeable’s investment advisory fee, the custodial fee, trading costs, administration, support, and access to our technology platform. In other words, these are the only fees payable by the client. As with other robo advisors, the exchange traded funds Hedgeable uses also charge fees, but those will be transparent to investors as they are take automatically by the fund.

Hedgeable account types

Hedgeable offers a wide variety of account types. This is particularly useful for people and / or companies who want to benefit from professional advice, but have more complex requirements for their account model. Hedgeable offers over 25 different account types. Below is just an extract of the most common accounts:

  • Individual investment accounts
  • Joint accounts
  • Escrow accounts
  • Traditional IRAs
  • Revocable Trust
  • Irrevocable Trust
  • Investment clubs
  • 401 (k)
  • Roth IRA

How do I start investing with Hedgeable?

To become a customer of Hedgeable, investors must meet specific requirements, such as those set by United States regulators. This includes the following:

  • Must be a US citizen or a US resident alien
  • Must have a valid American Social Security number
  • Must have a valid American address
  • Must be 18 years or older

Once you sign up for Hedgeable and deposit the $ 1 minimum you will complete a questionnaire and go through the portfolio adjustment process. After building the portfolio, you can access your account and continuously check the performance, the asset allocation and the transactions that have been / are being carried out in this account.

Hedgeable offers better customized portfolios than many of its competitors. The possibility of generating additional returns while at the same time increasing risk is available to anyone who has the nerve for it with investments such as bitcoins and even equity capital.